Facts

On Dec. 16, 2007, plaintiff Sophie Schwartz, 92, who suffers from dementia, was asleep in her bed at Oakdale Heights of Santa Clarita, a residential care facility for the elderly, when she was awakened by a man on top of her. Despite her struggles, he continued his attempts to rape her. He was caught in the act by a caregiver who came to Schwartz's room to return something that belonged to Schwartz.

At the time of the incident, the facility was operated and managed by defendant Oakdale Heights Management Corporation (OHMC), whose sole shareholder was James Koenig. Defendant Newhall Senior Housing LLC owned the facility and had contracted with OHMC to manage the facility. Defendant Murielle DeJesus was the executive administrator.

Schwartz's attacker, defendant Jose Eduardo Vazquez, an illegal immigrant, was an assistant cook at the facility. After consuming liquor on the job, Vazquez entered Schwartz's room with the master key that provided all employees of the facility access to every resident's room. This access was provided despite the fact that the manager who conducted Vazquez's interview knew that Vazquez presented false credentials and identification to get his job. There was no supervisor on duty at the time the incident.

Following Vazquez's arrest, law enforcement was provided with Vazquez's employment file, which was missing critical documentation required by the provisions of Title 22, which governs the operation of residential care facilities for the elderly. Vazquez was charged pursuant to Penal Code sections 220(A), 664-261(A)(1), 664-261(A)(2), 220(B) and 459. On April 21, 2008, Vazquez pled guilty to Penal Code sections 220(a) and 459. He was sentenced to eight years and four months in State Prison, and he is required to register as a sex offender.

James Koenig ceased operating the business and is currently being held on bail, having been charged with multiple counts of negligence, breach of contract, fraud, breach of fiduciary duty, unfair competition and racketeering, in connection with allegedly fraudulent real estate activities.

PLAINTIFF'S CONTENTIONS:
Plaintiffs contended that Vasquez was given the master key despite the fact that the manager who conducted Vazquez's interview knew that Vazquez presented false credentials and identification to get his job. Plaintiffs further contended that, even after the attack was reported to the front desk person, Vazquez stayed at the facility on the same floor where Schwartz's room was located for half hour. They contended that no one confronted him, attempted to detain him, or did anything to protect the other residents.

DEFENDANT'S CONTENTIONS:
Defendants did not deny that plaintiff was victimized by Vazquez. The defense contended that, while what happened to plaintiff was horrible, the attack had no correlation to the hiring practices, staffing, or supervision at the facility. The defense contended that they did everything right in the hiring process and that they had no idea that he was unfit as an employee to work at the facility. Specifically, the defense contended that the manager was not aware that Vazquez presented false credentials and identification to get his job. The defense argued that Vasquez had no criminal history and, up until the incident, was a model employee. The defense further contended that, after the incident, the facility manager directed Vasquez to remain so that the police could make his arrest. The administrator, the defense contended, was instrumental in arranging Vasquez's arrest.

Settlement Discussions

The parties mediated the case on Oct. 16, 2009. Defendants (except Jose Vazquez) offered $75,000, which was rejected by Schwartz. Schwartz offered to settle the case from the outset for the insurance policy of $1 million. This offer remained open until immediately prior to trial, but was rejected by defendants (except Jose Vazquez). During trial, defendants offered to settle for $250,000.

Result

The jury found that Oakdale Heights Management Corp. 25 percent negligent, Newhall Senior Housing, LLC 2 percent negligent, Murielle DeJesus 25 percent negligent and Jose Vazquez 50 percent negligent. The jury awarded Schwartz $12.5 million: $6 million in general damages ($2 million for future non-economic; $4 million from Oakdale Heights Management Corp.) and $6.5 million in punitive damages ($5 million from Oakdale; $1.5 million from Jose Vazquez). According to plaintiffs counsel, the jury found that defendant falsified employment documents at the time of Vazquez's hiring and violated several California laws governing the care of dementia residents. Defense counsel disputes this.

Other Information

Subsequent to this incident, OHMC stopped operating, and Northstar Senior Living Inc., was formed in its place. The court found Northstar Senior Living Inc., to be the successor in interest to OHMC and liable for any damages awarded against OHMC. Defendants intend to file motions for judgment notwithstanding the verdict and a new trial and will appeal. FILING DATE: Feb. 5, 2008.

Length

five weeks