It is worth noting that situations similar to those described in this elder abuse case could just as easily occur at any of the healthcare facilities in the area, such as Kaiser Permanente, UC Davis Medical Center, Mercy, Sutter, or any skilled nursing facility.
(Please also note: the names and locations of all parties have been changed to protect the confidentiality of the participants in this personal injury case and its proceedings.)
Additionally, all of the other factors a Court will consider in assessing alter ego warrant the finding that these two entities are alter egos. The XYZ Corporate Defendants appear to have complete control over the assets of Universal Healthcare (factor #1), in that all money earned by Universal Healthcare is deposited into an account that only the XYZ Corporate Defendants can access and withdraw money from. The XYZ Corporate Defendants appear to accept liabilities of the skilled nursing facilities they own (factor #4), as is illustrated by their agreement to settle and pay for government litigation involving their facilities. The XYZ Corporate Defendants and Universal Healthcare have identical equitable ownership (factor #6).
The equitable owners of these entities dominate and control them both (factor #7). Specifically, the administrator of Universal Healthcare reports to a Regional Supervisor, who is employed by the XYZ Corporate Defendants. As noted, the XYZ Corporate Defendants entirely control the financial operations at Universal Healthcare, going to far as to disallow Universal Healthcare employees from withdrawing money from the facility’s own bank account. The XYZ Corporate Defendants have a quality assurance program designed to ensure facility compliance with the laws governing skilled nursing facilities. For more information you are welcome to contact Sacramento personal injury lawyer, Moseley Collins.
The officers and directors of the XYZ Corporate Defendants and Universal Healthcare are substantially similar (factor #8). Donna Lee is identified on documents filed with the state of California as the Chief Financial Officer for both of these companies. Neil A. Greene is the President of XYZ, Inc. His child, Nancy Greene, is the President of Universal Healthcare, Inc.
The members of the board of directors of the two operative companies are similarly related. Donna Lee is one of the members of the board of directors for each corporation. Two of the three remaining members of the board for Universal Healthcare, Inc. are Nancy Greene and Matthew Greene, who are the children of Neil A. Greene, who is on the board of XYZ, Inc.
Universal Healthcare is owned by essentially one family (the Greene family) (factor #9). The XYZ Corporate Defendants and the corporation holding Universal Healthcare use the same office or business location (both are listed at the same street address in Sacramento, CA) (factor #10). These entities all use the same counsel (factor #11). Given that XYZ, Inc. is, was, and aspires to be a top nursing home chain, Universal Healthcare appears to be a mere instrumentality or conduit for the larger venture of XYZ, Inc. (factor #14).
All of these facts are relevant to the alter ego liability analysis, see Associated Vendors, Inc., 210 Cal. App. 2d at 838-40, and they all militate in favor of a finding of alter ego liability. (See Part 10 of 20.)
For more information you are welcome to contact Sacramento personal injury lawyer, Moseley Collins.