Inova Health Systems Services, Inc. v. Bainbridge

Susan Bainbridge (defendant) was Betty Callicotte-Meier’s agent pursuant to a general power of attorney. Callicotte-Meier was admitted to Commonwealth Care Center (CCC), a nursing home owned by Inova Health Systems Services, Inc. (plaintiff). As part of Callicotte-Meier’s admission to CCC, Bainbridge signed the Admissions Agreement as Callicotte-Meier’s agent. Bainbridge’s status as Callicotte-Meier’s agent was fully disclosed. Bainbridge signed on the line marked “responsible party.” However, in the agreement, Callicotte-Meier was named as both the resident and the responsible party. Pursuant to the agreement, the responsible party was responsible for paying Inova and for cooperating with Inova to obtain Medicaid coverage for the resident. Bainbridge did not enter a collateral agreement with Inova accepting any form of personal responsibility. Callicotte-Meier began residing at CCC in July 2004 but did not receive Medicaid coverage until November 2004. Because of the delayed Medicaid coverage, Callicotte-Meier incurred approximately $23,000 in overdue charges to Inova. As Callicotte-Meier’s agent, Bainbridge had control over Callicotte-Meier’s assets during Callicotte-Meier’s residence at CCC. Between July and November 2004, Bainbridge made one $1,000 payment to Inova from Callicotte-Meier’s assets and did not take steps to help Callicotte-Meier obtain Medicaid coverage. In December 2004, because of concerns that Bainbridge was misappropriating her assets, Callicotte-Meier revoked the power of attorney. After Callicotte-Meier passed away, Inova attempted to recover the $23,000 from her estate, but the estate was insolvent. Inova then sued Bainbridge to recover the $23,000, arguing that, because Bainbridge signed Callicotte-Meier’s admissions agreement as the responsible party, Bainbridge had an independent contractual obligation to use Callicotte-Meier’s assets to cover the cost of her care at CCC and to assist Inova in obtaining Medicaid coverage. Inova also raised concerns that Bainbridge’s alleged misappropriation of Callicotte-Meier’s assets caused the estate’s insolvency. Bainbridge denied any personal responsibility for Callicotte-Meier’s debt to Inova.