Unprecedented Settlement in Class Action Lawsuit Involving Elder Care

(LOS ANGELES) - An unprecedented move by residential elder care operator Sunwest Management was made recently when it came to the table to settle two class action lawsuits, one in California, which was filed December 21th 2007 in Orange County Superior Court, and one in Oregon, which has received preliminary approval by the Multnomah County Circuit Court and should receive final approval in February 2008.

"I have handled hundreds of elder abuse cases, and never before have I seen a company like Sunwest take a good hard look at itself and willingly come to the table prepared to take responsibility for its actions and to make changes to ensure its residents are given the best possible care it can give them," says Long Beach, California, plaintiff attorney Stephen M. Garcia of The Garcia Law Firm.

"Most of these companies run and hide so they can continue to profit unlawfully from the pain and suffering of our vulnerable elders. I believe Sunwest is starting a new chapter today."

In a rare break from tradition among elder care facilities, Sunwest Management is not requiring that the settlements be kept confidential. Though the company is not admitting to the specific allegations by settling the cases, the litigation resulted in revealing areas needed to be improved.

The California action settled for $4.5 million, and the Oregon suit settled for $1 million. Sunwest is compensating the plaintiffs in each case with per diem compensation for days spent in a Sunwest "community" during the specified time period. In California, this time frame is January 15th 2003 through January 15th 2007. In Oregon, the range is March 22nd 2006 through March 22nd 2007.

In the settlements, Sunwest also states that any money not claimed will be used for its facilities and for services for its residents. The company is agreeing to the appointment of an independent monitor who will undertake quarterly inspections of select Sunwest facilities. In order to ensure the credibility of the monitor's independence, Sunwest has chosen to abdicate any involvement in the selection of the monitor, who will be selected by plaintiff attorney Stephen M. Garcia of The Garcia Law Firm.

"Sunwest Management cares about its residents," says Sunwest attorney Timothy R. Graves of Lewis Brisbois Bisgaard & Smith. "After a thorough self-assessment, the company decided that the best way it could demonstrate its concern for each and every resident whose care is entrusted to them was to spend company money in improving residential care rather than spending that same money in litigation."

Sunwest Management, headquartered in Salem, Oregon, operates approximately 250 elder care facilities nationwide. It is one of the leading elder care management and operators of such facilities in the country.

Each of the class action complaints alleged that Sunwest Management, Inc., its directors, and the approximately 16 residential elder care facilities in the state of California and the more than 50 facilities in Oregon that it owns, operates or manages, failed to comply with applicable laws and regulations governing the operation of residential care facilities for the elderly, resulting in the defendants receiving multiple citations of deficiencies from the California Department of Social Services and the Oregon Department of Human Services, respectively.

The lawsuits alleged that Sunwest and its facilities deliberately understaffed its "communities" by forcing each facility to operate under a budget, approved and directed by Sunwest Management and the directors of the individual facilities, that would increase business profits by charging for services that were not provided, such as adequately staffing the residential care facility as it advertises that it does.

"This settlement demonstrates how our civil justice system can spur meaningful social change," says Garcia. "The residents will benefit from safe, specialized care at a Sunwest facility, which is ensured by an independent monitor. Moreover, Sunwest Management has the opportunity to become a nationwide showpiece among elder care facilities known for offering excellent care to its residents while it makes a fair profit for the company."

Salem-News.com Top Stories

2025: Hope for the Best, Prepare for the Worst

Two Wars with No Way Out

No One Owns the Future

The Ugly Origins of Trump's America First Policy

A One-State Solution Could Transform the World

Comments Leave a comment on this story.

All comments and messages are approved by people and self promotional links or unacceptable comments are denied.

Faith March 4, 2010 11:01 am (Pacific time)

I worked at Magnolia in muskogee, ok. They have us doing everything except spend time with the residents. Our Nurse there Brenda if someone is out of Medication she takes it from another person . They let me go Yesterdaythey lied we are suppose to do activities with the residents so i was playing dominos with a resident. I then got called to the office and was told that im not all there and they had to let me go. Then later that night they said i borrowed money from residents i have my own money have never borrowed any from anyone. A resident is leaving there and they are trying to talk her into staying she wants to go home with her family, I love this person to death she knows everything she knows what she is doing . I got her to stay the first time and kn0ow she wants to leave. They need to quit this behavior is that all they are into is the money?????? They told me i couldnt come on the property. Another Girl is trying to get another job she has been there 5 yrs and they wont even let her go. They wont give a reference. I loved it there I Love My residents. I feel bad for posting this. but we are Cnas/ Mats/ Cma. we are not suppose to do dishes and everything they put qalot on us so we cant spend time with these residents. First of im not stupid, I see what they are doing they are money hungry. And i might take them to court for what the rn said to me, Im not a thief, Ive never borrowed anything, Im a giver.

Leslie Graves September 22, 2008 11:50 pm (Pacific time)

Sunwest Park Place in Casper Wyoming has destroyed my life. I cannot find my mother as after I placed her there and they got the lease signed they told me I was not welcome. Kari Rate, the Director made false reports to Adult Protective Services and to local law enforcement that I abused my mother. She is lying. She just wanted to handle my mother's money and my mother told me that Park Place was taking care of her money. They raised her rent and ruined my family. Park Place staff treated me like a dog and local law enforcement did the same. I don't even know where my mother is. But I do know that after she entered the facility she became nervous, agitated, and was afraid of Kari Rate or Pickett. I honestly believe they drugged her. God help my mother. What did they do to her. I have letters she sent me saying she missed me and wanted to see me but they hung up the phone on me and called their administrator. They also kept raising her rent. They made her lie to the police. She told me that. I have sent a letter to the Governor of Wyoming and I hope someone starts investigating Park Place in Casper, WY. IT IS NOT A PLACE TO PUT A LOVED ONE. They put them in fear of family and do it out of greed and control. Shame on all of you with Sunwest. Hopefully, families will start checking on their parents and another class action lawsuit for the abuse of the residents and family members will be set forth and victims compensated. Where is my MOther, Kari?

barb-wilsonville May 14, 2008 10:40 am (Pacific time)

I want to ad I finally got a out of that job at windfield almost 10 months ago and it took months to get my stress level back to where it should be,I found a great job and work with normal people and trust me sometimes just taking any job for the money is not worth it,some companys and jobs are just no good to work for so stay away from sunwest if you want to stay healthy ad well.

barb-wilsonville May 14, 2008 6:32 am (Pacific time)

IAM HERE TO TELL YOU THAT SUNWEST IS THE WORST COMPANY I HAVE EVER EVER WORKED FOR,NOT ONLY ARE THEY SNAKES AND NEVER PAY THEIR BILLS-I MEAN EVER,THE STAFF AT THE WILSONVILLE OR RETIREMENT CENTER ARE LOW LIFE BACK STABBING IDIOTS THAT WILL STAB ANYONE OF THEIR EMPLOYEES IN THE BACK IF IT WILL BENEFIT THEM,REALLY THEY DON'T PAY ANY OF THEIR BILLS,THE GROUNDS HAD LOOKED LIKE HELL FOR MONTHS DUE TO NO MONEY TO PAY TO HAVE IT DONE AND THEY KEEP RAISING THE RENT EVERY MONTH,AND LETS NOT EVEN MENTION THE FOOD AND CRAP THE RESIDENTS GET FOR MEALS,ITS SUCH A JOKE AND I ALSO NO THERE ARE A COUPLE OF LAW SUITS BEING FILED BY RESIDENTS.I HAVE NEVER SEEN SUCH UNDER HANDED DEALINGS IN ALL MY YEARS,AND ALSO DON'T EVEN TRY AND CLAIM A HONEST WORK RELATED INJURY BECAUSE THE POOR EMPLOYEE WHO DOES WILL BE OUT THE DOOR AS FAST AS THEY CAN SET THEM UP TO GET RID OF THEM,IAM NOT MAKING ANY OF THIS UP,ALSO ONE MORE THING LAST YEAR THEY HAD BEEN LETTING ILLEGAL SPANISH PEOPLE WORK THERE FORYEARS UNTIL SOMEONE TURNED THEM IN AND THEY HAD TO GET RID OF 9 ILLEGALS. IF YOUR LOOKING FOR A PLACE FOR YOUR ELDERLY LOVED ONE OR LOOKING FOR A JOB PLEASE BELIEVE ME WHEN I SAY JUST KEEP LOOKING AND RUN AS FAST AS YOU CAN FROM WINDFIELD VILLAGE IN WILSONVILLE OR..

Paula April 15, 2008 7:18 am (Pacific time)

Amen to Lisa!

Lisa February 24, 2008 8:24 pm (Pacific time)

After working for Sunwest for 5 years, I know that this settlement will not change anything. With this settlement it just means that they will not be paying their bills and vendors will refuse to come to the facilities to fix things due to non-payment of bills. Imagine living in a town where you run into these people who own these businesses that have not been paid and have to deal with a situation that you cannot control because the bills are paid by the Home Office. Not bounced payroll checks. They treat their employees, marketers, and administrator with very little respect and due to the rapid growth of the company nothing is going to change. Their choices in Regional Managers are horrible and the Administrator work with tension on a daily basis! I have already been through this with the company and had to quit a job I loved and was good at because I could know longer work for a company that I had no faith in. They do rent increases on a yearly basis to where our seniors have no options but to move to BandC. The presure that they put on their marketing staff and administrators is unrealistic. Somehow Sunwest always gets out of the messes that they create and if you think this is going to change anything, think again! I know first hand how this company works, yeah the state will be in the buildings more and another source will be coming in to do inspections. It does not change the fact that they are a horrible company. The qualitiy of food that they feed their senior is horrible. So much food is thrown away because the residents won't eat it. They tell you to garnish the plate and that will make it better. Give me a break, our seniors are not stupid. They know mad food. Many good administrators have left in the last year and a half. They will just buy more in other States and more problems will follow. Just once I would like Sunwest to actually not settle a case to get out of it and actually go to court and face the charges that have been brought against them. I was really hoping the this was the one.

Elaine February 9, 2008 7:06 am (Pacific time)

Apparently Sunwest is becoming Suneast. They purchased a facility in June in Virginia and are continuing their operating practices of running on a budget and cutting staff. Hopefully this facility will be one of the "select" facilities to be "inspected" by an "independent monitor"; otherwise, look for settlements to be heading East.

Henry Ruark January 26, 2008 9:26 am (Pacific time)

Neal et al: But do not overlook the real significance this makes as precedential action on full public record, received and approved by this court. That alone makes it of real value to any forthcoming similar situations. Never forget that the very strong and influential "corporate campaign contributions" curse, from which we now suffer so extensively, was obtained by several small-money suits then followed relentlessly for 30 years, until business interests finally "acquire" (as in bought with dollars) the court reporter "headnote" that still serves as main "precedent" for literally billions of dollars disguised as "political speech" --as if corporation could ever BE a real, live, human being as was intended by Amendments involved.

Neal Feldman January 25, 2008 4:08 pm (Pacific time)

Bet each victim gets a pittance. Ah well...

[Return to Top]