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Sauders v. Mangum Nursing Center, LLC

Citations: 377 P.3d 180; 2016 OK CIV APP 53; 2016 Okla. Civ. App. LEXIS 20Docket: Case No. 113, 860

Court: Court of Civil Appeals of Oklahoma; April 11, 2016; Oklahoma; State Appellate Court

Narrative Opinion Summary

This case involves an appeal by Teresa Sauders and Michael Lowell, next of kin to the deceased Betty Lowell, against the dismissal of their lawsuit involving claims of negligence, nursing home care violations, negligence per se, and fraud against multiple defendants including Don Greiner and Mangum Nursing Center, LLC. The trial court had dismissed their case, ruling based on 12 O.S. 2012(B)(6), arguing that corporate officers couldn't be held liable until a judgment against the corporation was unsatisfied. The plaintiffs amended their petition, alleging Greiner’s direct involvement in inadequate staffing and care policies, leading to Lowell's death. They also contested the 2018 amendments to 12 O.S. 682 as substantive and inapplicable to their pre-amendment claims. The appellate court found the trial court erred in dismissing the claims, as the plaintiffs had sufficiently alleged Greiner's direct conduct. The court ruled that the amendments were substantive, not procedural, and therefore not applicable retroactively. The court reversed the dismissal and remanded for further proceedings, affirming that plaintiffs could pursue claims against corporate officers for direct actions. The motion to dismiss the appeal was denied, and procedural motions regarding parties and judges were addressed appropriately.

Legal Issues Addressed

Constitutionality of 12 O.S. 682

Application: The plaintiffs challenged the statute's constitutionality, arguing it improperly restricted their right to seek redress and created unjust classifications.

Reasoning: Additionally, Plaintiffs challenge the constitutionality of 12 O.S. 682, claiming it infringes upon their right to seek jury redress for harms against all defendants and creates unjust classifications among similarly situated defendants.

Motion to Dismiss Under 12 O.S. 2012(B)(6)

Application: The court examined whether the plaintiffs had stated a claim upon which relief could be granted, focusing on allegations of Greiner's direct involvement in nursing home operations.

Reasoning: The standard for reviewing a motion to dismiss involves accepting all allegations as true and determining if the plaintiffs could prove any set of facts entitling them to relief, which was not adequately considered in this case.

Substantive vs. Procedural Amendments

Application: The court determined that the amendments to 12 O.S. 682 were substantive and not applicable to claims arising before the amendment's effective date.

Reasoning: The conclusion drawn is that the amendments do not apply to the Plaintiffs' claims because they were enacted after the claims arose, adhering to the principle that statutes generally have only prospective effects unless otherwise stated.

Vicarious Liability and Corporate Officers

Application: The court considered whether corporate officers could be held liable for corporate debts or liabilities without a prior judgment against the corporation, focusing on allegations of Greiner's direct conduct.

Reasoning: The court found that the Plaintiffs had sufficiently alleged direct actions by Greiner to survive a motion to dismiss, as the allegations must be accepted as true at this stage.