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    Zuric Financial to pay damages in precedent setting case.

    “On Aug. 8, 2003, plaintiff Dan B. Lain became trustee of the assets of bankruptcy debtor Senior Living Properties
    LLC (SLP), a nursing home company. Lain’s duties included liquidating the assets and using the proceeds to satisfy claims against SLP, including claims by unsecured creditors and personal injury claimants. Lain sued a surety of SLP’s, ZC Specialty Insurance Co., a subsidiary of Zurich Financial Services Group, alleging that ZC was SLP’s partner in the nursing home business and therefore liable for SLP’s debts.”

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    “ZURICH (Dow Jones) – Switzerland-based insurer Zurich Financial Services AG (ZURN.VX) said Tuesday that it has reached a settlement regarding the bankruptcy of a U.S. nursing home chain Senior Living Properties.
    Under the agreement, Zurich will pay $47.5 million. The company said its reserves will fully cover the payment.
    The settlement puts an end to a lawsuit filed by Senior Living Properties which sought damages of around $528 million from Zurich company units.”

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    “A recent decision by a Texas bankruptcy judge represents a precedent setting ruling of note to lenders, sureties, and insurance companies involved in structured finance transactions.

    On April 22, 2004, Steven A. Felsenthal, Chief United States Bankruptcy judge of the North District of Texas, Dallas Division, entered a declaratory judgment against ZC Specialty Insurance Company a subsidary of Zurich Financial Services Group, ruling that was a partner in the ownership and operation of 87 nursing homes located in Texas and Illinois. The nursing home chain, which did business as Senior Living Properties, L.L.C. (SLP), filed for bankruptcy protection on May 14, 2002. As a partner in the enternprise, Zurich now finds itself liable for all debts incurred by the bankrupt nursing home chain. According to a subsequent lawsuit filed by the court appointed post-confirmation trustee, Dan B. Lain, Zurich is responsible for debts in excess of $500 million.”

    Read More from the Summary of the Court Case and the Court’s Findings     

    “In this adversary proceeding, Dan B. Lain, the Trustee of the Senior Living Properties L.L.C. (SLP) Trust, requests that
    the court declare that ZC Specialty Insurance Company (Zurich) was a partner with SLP in the ownership and operation of nursing homes in Illinois and Texas and that, as a partner, Zurich is liable for all of SLP’s debts. Zurich responds that it merely provided a surety bond for the payment of a substantial portion of SLP’s mortgage and, as a result, merely held a creditor-debtor relationship with SLP.”

    Read More from the Court’s Opinion and Order

    Largest Nursing Home Corporation in US Found Guilty of Gross Neglect and Causing Resident Death

    “Ruth Waites, an 83 year old dependent diabetic, was admitted to the Borger Nursing Center in June of 1993. She died on 10/29/94 suffering from a Stage 4 decubitis ulcer. It was alleged the pressure sore was due to neglect in the nursing home. They further claimed intentional fraud caused widespread injury to other similarly situated residents.”

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    “RUTH WAITES was 83 years old when she began living at the Borger Nursing Center, in Borger, Texas, in 1993. At the time, said plaintiffs counsel David T. Marks, Ms. Waites was mentally alert, but largely unable to walk and a diabetic. While at the Borger home, he said, Ms. Waites became severely dehydrated and was hospitalized. After she returned to the center, she developed pressure sores and was hospitalized again. These bed sores were so severe, he said, that hospital staff “cut out hunks of rotten tissue,” from her body. Ms. Waites died Oct. 29, 1994; the cause of death, Mr. Marks said, was “infected pressure sores.”

    Read More from The National Law Journal

    Strategies for Decreasing Legal Hazards in Long-Term Care

    1. Introduction: 
    2. Objective: 

    To educate those in the nursing profession and the allied health fields about conduct (relating to treatment and care of the geriatric patient) which constitutes a “red flag” to the legal profession; places health care professionals at risk; and potentially results in civil, criminal, and administrative, liability. 

    1. Discussion Preview: 

    In seeking to accomplish the foregoing objective, the following subjects are examined: 

    Part One: An Emerging Trend — Legal Accountability for Maltreatment of the  Geriatric Patient: 

    Part Two: When Can a Health Care Provider be Held Legally Accountable for 1) His/her Own Acts- or Omissions? 2) The Conduct of Another? 

    Part Three: The Failure to Report ElderAbuse/Neglect as the Basis for Liability Part Four: The Clinical Record as a Source of Proof in a Neglect/Abuse Case

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    Jury Found for Plaintiffs on All Issues, Allocated Responsibility at 70% Beverly Enterprises and 30% Beverly Enterprises Texas.

    Jury found for Plaintiffs on all issues, allocated responsibility at 70% Beverly Enterprises and 30%
    Beverly Enterprises Texas. Additionally, found that both Defendants had engaged in intentional fraud.
    Awarded:
    $12,000,000 pain & suffering.
    $ 1,000,000 disfigurement.
    $70,000,000 punitive damages.
    $83,000,000 Total Award.
    11 1 (20 day trial)
    Medical malpractice statute 4590i requires a reduction in the judgment. Judgment was entered on 12897:
    $1,316,500 actuals Beverly Enterprises
    $1,316,500 actuals Beverly Enterprises TX
    $36,400,000 punitive Beverly Enterprises
    $15,600,000 puni. Beverly Enterprises TX
    $54,633,000 Total Judgment
    Pretrial demand: $4.7M
    Pretrial offer: $3.5M

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    Zurich Financial To Pay $47.5M In U.S. Nursing Home Settlement

    ZURICH (Dow Jones) – Switzerland-based insurer Zurich Financial Services AG (ZURN.VX) said Tuesday that it has reached a settlement regarding the bankruptcy of a U.S. nursing home chain Senior Living Properties.
    Under the agreement, Zurich will pay $47.5 million. The company said its reserves will fully cover the payment.
    The settlement puts an end to a lawsuit filed by Senior Living Properties which sought damages of around $528 million from Zurich company units.

    Read the full verdict 

    Gardner Oil, Inc., Appeals Judgment in Favor of Appellee Alvaro Chavez Related to Personal Injuries

    Gardner Oil, Inc., appeals the trial court’s judgment entered in favor of Appellee Alvaro Chavez related to personal injuries Chavez sustained as a result of a fire. Gardner Oil raises seven issues on appeal. We affirm.
    BACKGROUND
    Carl Rogers Logging (CRL) is a logging company. CRL purchased its entire supply of off road diesel fuel from Gardner Oil. On January 10, 2008, Gardner Oil delivered fuel to CRL and loaded it into a 1,000 gallon tank at CRL’s headquarters. Thereafter, CRL dispensed the fuel from the 1,000 gallon tank into a 100 gallon mobile tank. CRL used the fuel from the 100 gallon mobile tank to supply its equipment at the worksite.
    Chavez worked for CRL as a log loader operator. Early on the morning of January 11, 2008, Chavez fueled the log loader at the worksite with fuel from CRL’s mobile tank. As fuel was pumped into the log loader’s fuel tank, Chavez entered the cab of the log loader and used a lighter to illuminate the fuel gauge. Thereafter, he exited the cab with the lighter still burning. As he did so, the lighter ignited fuel vapors and a significant flash fire erupted. Chavez suffered severe injuries as a result of the fire.
    Chavez underwent several surgeries and required extensive medical care to treat his injuries. The fire left scars and made Chavez extremely sensitive to sunlight. He also sustained hearing loss and suffered several permanent problems with his eyes. As a result of his injuries, Chavez no longer can work as an operator of a log loader.
    Chavez’s coworkers at CRL were surprised that the diesel fuel could be the source of such a violent flash fire. They had never seen diesel ignite so easily and suspected that something was amiss with the fuel that Chavez was pumping into the log loader at the time of the incident. The owner of CRL, Carl Rogers, took a sample of the fuel that Chavez was pumping into the log loader and sent it to a laboratory for analysis. The laboratory determined that the fuel was not pure diesel, but instead a mixture of gasoline and diesel.
    Chavez filed suit against Gardner Oil based on theories of negligence and breach of warranty. Gardner Oil alleged that Chavez’s injuries were caused by his own negligence or by CRL’s actions. During trial, the trial court ruled that the allegations against CRL failed as a matter of law. Ultimately, the jury determined that the injuries were caused by Gardner Oil’s conduct and not by Chavez’s actions. The jury further determined that Chavez was entitled to money damages caused by Gardner Oil’s conduct. The trial court rendered judgment in accordance with the jury’s verdict, and this appeal followed.

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