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Price v. TLC Health Care2/10/2004
__ P.3d __
This is an action for injuries alleged to have been caused through substandard medical care provided at the Oak Dale Manor Nursing Home which is operated by TLC Health Care, Inc. (TLC). The action was brought by the personal representative of the estate of Jewel Martin, deceased, who was a patient at the facility.
The trial court granted summary judgment to two defendants, H.A. Sand Springs, LLC (HASS) and its sole member and manager Harvey Angell who leased the nursing home premises to TLC. The Court of Civil Appeals affirmed in part, reversed in part, and remanded the case for further proceedings. This Court granted certiorari review and now vacates the opinion of the Court of Civil Appeals and affirms the summary judgment of the trial court.
At issue is whether HASS, the landlord, and Angell, its manager, are legally responsible for any negligent or substandard medical care provided to a resident of the nursing home. The question presents an issue of law reviewed de novo. See Kluver v. Weatherford Hosp. Auth., 859 P.2d 1081, 1084 (Okla. 1993).
HASS IS A MERE LANDLORD WHO INCURS NO LIABILITY UNDER THE NURSING HOME CARE ACT OR THE COMMON LAW DOCTRINE OF RESPONDEAT SUPERIOR FOR SUBSTANDARD CARE PROVIDED BY ITS NURSING HOME TENANT.
Under a 1999 lease agreement, HASS provided a "turn key" lease of a fully operational, 213 bed facility licensed and operated by TLC. The lease provides that TLC must pay all costs, expenses, and obligations related to the leased premises. HASS is not required to provide any service or do any act related to the premises. TLC is required to maintain property, casualty, and business interruption insurance along with workers' compensation and medical malpractice insurance with HASS as a named insured under each of these policies. HASS receives a monthly rent payment for lease of the premises. In addition, HASS retained the right to inspect the operation, and to inspect and audit its business records.
Oklahoma's Nursing Home Care Act (Act), Okla. Stat. tit. 63, § § 1-1901 through 1-1971 (2001 & Supp. 2002), "provides a right of action for residents of nursing homes to redress specific wrongful acts and omissions. It provides for the recovery of damages." Morgan v. Galilean Health Enters., Inc., 1998 OK 130, 977 P.2d 357, 361 n.13. The Act gives every nursing home resident "the right to receive adequate and appropriate medical care consistent with established and recognized medical practice standards within the community." Okla Stat. tit. 63, § 1-1918. This right is enforceable against " he owner and licensee are liable to a resident for any intentional or negligent act or omission of their agents or employees which injures the resident." Id. at § 1-1939 (A).
The Act defines "licensee" as "the person, a corporation, partnership, or association who is the owner of the facility which is licensed by the Department [of Health] pursuant to the provisions of the Nursing Home Care Act." Id. at § 1-1902 (13). "Owner means a person, corporation, partnership, association, or other entity which owns a facility or leases a facility. The person or entity that stands to profit or lose as a result of the financial success or failure of the operation shall be presumed to be the owner of the facility." Id. § 1-1902 (16).
As this Court has observed, "the language of the Act is not a model of clarity and precision." Morgan, 977 P.2d at 361. Its definition of "owner" exemplifies that description. The first sentence which defines "owner" as the entity which owns or leases a facility is relatively unambiguous. The presumption provided in the second sentence, however, could inclu
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