Lawsuit Against Alameda Healthcare & Wellness Center Results in $7.6M Verdict
On November 13, 2023, Plaintiffs James Doherty, by and through his Successor in Interest, James Doherty, Jr.; and James Doherty, Jr., individually, filed this action against Defendants Alameda Healthcare & Wellness Center LLC dba Alameda Healthcare & Wellness Center; Rockport Administrative Services, LLC; Boardwalk West Financial Services, LLC; and Shlomo Rechnitz asserting four claims: (1) Elder Abuse and Neglect; (2) Violation of Resident’s Bill of Rights; (3) Negligence; and (4) Wrongful Death.
James Doherty, Sr., a 71-year-old Air Force veteran, entered Alameda Healthcare & Wellness Center in May 2022 while recovering from advanced tongue cancer. After treatment, his cancer was shrinking, but he remained medically fragile and required skilled nursing care to attend ongoing oncology appointments and to receive assistance with daily needs — including the critical turning and repositioning required to prevent pressure sores.
Although Alameda Healthcare was farther from their home, Mr. Doherty’s family chose this facility because it promised transportation to his cancer appointments. Instead, the facility failed to transport him to at least seven oncology visits, disrupting his cancer treatment. Staff also repeatedly failed to turn and reposition him, leading to the development of a massive pressure sore.
As a result of this neglect, Mr. Doherty developed a severe, deep, infected sacral ulcer that tunneled to bone. Facility records and witness testimony showed that Certified Nursing Assistants falsified care charts, documenting turning and repositioning Mr. Doherty when he was not even in the facility. Those records also showed over 500 missed turning and repositioning entries, and because of the fraudulent entries, even that number understates the true extent of the facility’s neglect.
After a six-week trial in Alameda County, a panel of 12 jurors found Alameda Healthcare guilty of 1,437 violations of the nursing home Residents’ Bill of Rights, awarding $500.00 per violation ($718,500.00), and found Alameda Healthcare & Wellness Center, LLC and Rockport Administrative Services, LLC, guilty of negligence and elder neglect, awarding $918,500.00 for Mr. Doherty’s pre-death pain and suffering.
The jury also decided that the defendants’ conduct was committed with malice and oppression, awarding punitive damages in the amount of $2 million against Alameda Healthcare and $4 million against Rockport. Defendants Boardwalk West Financial Services, LLC, and Shlomo Rechnitz were found to be liable as joint ventures with the other defendants. Mr. Rechnitz testified at trial that he owns approximately 88 nursing homes in the State of California, amassing over $1.3 billion in assets.
At trial, evidence showed that Rockport controlled the facility’s finances, payroll, and bank accounts, while Mr. Rechnitz and related family-owned companies profited from leases, supply contracts, and service agreements with Alameda Healthcare. This structure stripped the facility of funds needed for resident care, prioritizing profits and internal payments over resident safety and dignity.
