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Case Law Alerts

New Jersey Appellate Division Provides a Blueprint for Proving a Claim and Obtaining Attorney Fees Under the N.J. Nursing Home Responsibilities and Residents’ Rights Act

Moody by & through Gatewood-Gabriel v. Voorhees Care & Rehab. Ctr., No. A-5561-18, 2021 WL 608903 (N.J. Super. Ct. App. Div. Feb. 17, 2021)

July 1, 2021

The plaintiff resident alleged the defendant nursing home was negligent and violated her rights for negligently monitoring her blood sugar, resulting in hospitalization. Claims were brought under the state’s Nursing Home Act, as well as federal regulations dealing with nursing homes under the Omnibus Budget Reconciliation Act (OBRA), 42 C.F.R. §§483.1-483.480.

On appeal, the defendant argued the plaintiff’s expert should not have been permitted to testify about violations of the NHA, specifically, the violations of nursing home residents’ rights in N.J.S.A. 30:13-5(j). In ratifying the decision to permit the plaintiff’s expert to testify about the NHA and upholding the jury award of nearly $350,000, the Moody Court distinguished Ptaszynski v. Atl. Health Sys., Inc., 440 N.J. Super. 24 (App. Div. 2015). First, the expert in Moody was allowed to opine on violations of rights, N.J.S.A 30:13-5(j), because he was not asked to define the words in the statute, e.g. “dignity,” like the expert in Ptaszynski. Second, the same evidence of damages can be utilized to prove both statutory violations of rights and negligence, provided the jury is instructed not to duplicate damages. And third, federal and state regulations as well as state statutes are all relevant to the standards of care for nursing homes, so the plaintiff’s expert was permitted to testify and the jury was instructed with charges that incorporate this language.

The implication of Moody is that it may make it easier for a plaintiff to prove a claim and obtain an award of attorney fees under the NHA because this decision serves as a step-by-step guide on how to do so.

Case Law Alerts, 3rd Quarter, July 2021 is prepared by Marshall Dennehey Warner Coleman & Goggin to provide information on recent developments of interest to our readers. This publication is not intended to provide legal advice for a specific situation or to create an attorney-client relationship. Copyright © 2021 Marshall Dennehey Warner Coleman & Goggin, all rights reserved. This article may not be reprinted without the express written permission of our firm.

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Appellate Division Affirms Dismissal of Legal Malpractice Counterclaim Against Martin Law Firm

In Martin v. Loury, 2026 N.J. Super. Unpub. LEXIS 1617 (App. Div. July 15, 2026), Martin Law Firm represented Kirk Loury in an employment matter Mr. Loury filed against his former employer, Concord Equity Group Advisors LLC (“Concord”). The allegations included, among other things, that Loury was not fairly compensated for his employment with Concord. After a bench trial finding in Loury’s favor, the Appellate Division remanded this matter in February 2016 for a second trial. During the second trial, Concord CEO, Lee Argush, testified to lower compensation estimate than first trial. On remand, the second trial judge awarded Mr. Loury the same damages as the first judge, finding Mr. Argush not credible. After the findings during the second trial, Martin Law Firm filed an action against Mr. Loury to recover legal fees and costs of representing Mr. Loury in a second bench trial and Mr. Loury filed a counterclaim against Martin Law Firm for legal malpractice, alleging he should have received an even higher award in the second bench trial. In this allegation, Mr. Loury, through his expert, claimed that Martin Law Firm should have recalled Mr. Loury to the stand to rebut Mr. Argush’s testimony to allege an alternative theory of damages. Mr. Loury’s expert admitted that the second judge already rejected Mr. Argush's theory and accepted Loury's damages theory. The trial court barred Mr. Loury’s expert and dismissed Loury's counterclaim with prejudice before convening the collection trial, and the jury ruled in Martin Law Firm’s favor. Mr. Loury appealed the trial court's pretrial rulings barring his liability expert from testifying in support of his legal malpractice counterclaim, denying his motion for summary judgment on that counterclaim, and denying his motion to amend his counterclaim by adding attorney Joseph A. Martin as a codefendant. In affirming the trial court’s decision, the Appellate Division held that the trial court properly excluded Loury’s expert testimony in the counterclaim against Martin Law Firm because the expert could not explain how calling Loury as a rebuttal witness would have increased damages when the second judge already rejected Mr. Argush's testimony and accepted Loury's damages theory, making the expert’s causation opinion speculative. The Appellate Division also held that the trial court properly denied Mr. Loury's summary judgment motion on his malpractice counterclaim because reasonable minds could differ on whether Mr. Martin's alleged failures would have changed the second judge's damages award, given the judge already found Mr. Argush not credible, creating genuine factual disputes precluding summary judgment. Also, the Appellate Division held that the trial court properly denied Loury's May 2023 motion to add Joseph Martin individually because the statute of limitations expired in February 2022, six years after the 2016 appellate remand when Mr. Loury incurred new legal costs, and relation back did not apply because Mr. Loury knew Mr. Martin's identity throughout and strategically chose to sue only Martin Law Firm in his 2019 counterclaim.