Breach of Duty

A class action lawsuit was filed late last year against a health care facility and its board of directors claiming breach of duty in that the company had violated state regulations that stipulates that nursing homes must maintain 3.2 nursing hours per patient, per day. The lawsuit claimed that the nursing homes operated by the insured often did not meet the requirement. Interestingly, there was never any claim from any patient that they had been harmed or put in danger. Not a single patient claimed personal injury before lawyers began to file their class action lawsuit.  After a six-month trial, the jury decided that the company did violate the rules and awarded the plaintiffs $613 million in statutory damages and $58 million in restitution damages.