-By Warner Todd Huston
When companies are found to have violated regulations that govern their industry, is it right that a jury of non-experts can award damages the amount of which will wipe the company off the face of the earth? That is a question that has been raised in a case recently decided against Skilled Healthcare LLC of California.
A class action lawsuit (lawsuit info here) brought by trial lawyers was filed late last year against Skilled Healthcare of California claiming that the company had violated state regulations that stipulates that nursing homes must maintain 3.2 nursing hours per patient, per day (ppd). The lawsuit claimed that the nursing homes operated by Skilled Healthcare often did not meet the requirement.
Interestingly, there was never any claim from any patient that there’d been harmed or put in danger. Not a single patient claimed personal injury before these lawyers began to file their class action lawsuit.
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Jury Damage Award Could Close Calif. Healthcare Facilities”