In the Courts: U.S. District Court Declines to Pierce the Corporate Veil

December 20, 2013 | Aging Services Risk, Quality, & Safety Guidance

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In a case against an assisted-living facility, its parent company, its management company, and several individual defendants, the U.S. District Court for the District of New Jersey has dismissed the parent corporation from the action. It also dismissed a claim for breach of contract but allowed a claim alleging violations of the state nursing home residents’ rights act to proceed.

The resident, who had dementia, lived at the facility for five years. Nearly four years into her residence at the facility, the plaintiff was called and told that her mother had fallen and had a “little bruising over her eye.” When the plaintiff arrived, she was shocked by the condition of the resident’s face. The next day, the plaintiff visited again and saw more bruising that had not been present the day before, leading the plaintiff to suspect that staff had abused the resident. The plaintiff arranged for hospital treatment and hired private...

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