Peple v Highgate LTC Management LLC

Criminal Liability for Understaffing

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This is truly a "cautionary tale" about a Nursing

Home that was held criminally liable for the acts of an employees.

The Court held that a Limited Liability Company ("LLC") can be criminally liable and lose its license -- for simply being aware of chronic overstaffing -- after its employees were found guilty of falsifying records as to a patient's care.

But this could happen to any

business where chronic understaffing, perhaps more common in this

economic climate, allegedly results in employees falsifying records that

relate to care or safety.

This is why this decision is a "cautionary tale."

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Published In: Business Organization Updates, Criminal Law Updates, Insurance Updates

Reference Info:Decision | State, 2nd Circuit, New York | United States