Aud v. RRT Enterprises, LP — MICRA Cap Does Not Cover Nursing-Home Custodial Neglect

Case
Aud v. RRT Enterprises, LP 7/22/26 CA2/7
Court
2nd District Court of Appeal
Judge
Segal (appointment info not available)
Date Decided
2026-07-23
Docket No.
B341254
Status
Reported / Citable
Topics
elder abuse, nursing homes, MICRA, noneconomic damages, custodial care
Source
Mirrored from lexcalifornia.com

Background

Betsy Jentz sued a skilled-nursing facility and related parties under California’s Elder Abuse Act, the statutory patient-rights remedy, and negligence law. A jury found for Jentz and awarded approximately $2.34 million, including more than $1.8 million in noneconomic damages.

The trial court granted judgment notwithstanding the verdict and conditionally ordered a new trial unless the award was sharply reduced. It treated the claims as professional-negligence claims governed by the Medical Injury Compensation Reform Act, or MICRA, and applied MICRA’s cap on noneconomic damages. Jentz died during the appeal, and her successor continued the case.

The Court’s Holding

In the published portion, the Court of Appeal held that MICRA did not cap Jentz’s noneconomic recovery. Applying the California Supreme Court’s intervening decision in Holland v. Silverscreen Healthcare, the court focused on the nature of the acts and omissions, not simply the defendant’s status as a licensed health-care provider or the location where the harm occurred.

Jentz’s claims concerned the facility’s failure to provide basic custodial and caregiving services to a dependent resident. Those duties did not require professional medical judgment and therefore were outside MICRA’s definition of professional negligence. The court directed reinstatement of the jury’s noneconomic award. It otherwise left in place rulings reducing economic damages to amounts paid by Medicare and Medi-Cal and resolving certain derivative-liability issues, producing an affirmance in part and reversal in part.

Key Takeaways

  • MICRA does not automatically govern every injury occurring in a nursing home or every claim against a licensed provider.
  • Courts examine whether the challenged conduct involved professional medical services or ordinary custodial and caregiving duties.
  • Claims based on failures to provide basic care may support uncapped noneconomic damages even when pleaded alongside negligence theories.
  • Verdict forms, jury instructions, and proof should separate custodial neglect from acts requiring medical skill or judgment.

Why It Matters

The classification of a nursing-home claim can change its value dramatically. Plaintiffs’ lawyers should plead and prove the specific caregiving failures, while facilities should avoid assuming that licensure alone brings a case within MICRA.

The distinction affects more than damages. It can shape expert requirements, jury instructions, settlement valuation, insurance positions, and the evidence needed to explain what staff should have done. Parties should resist grouping every omission under a general label such as care or treatment and instead identify the task, the employee performing it, and whether professional skill or judgment was required.

The ruling also underscores the continuing effect of Holland on elder-care litigation. Operators, insurers, and counsel should analyze each duty at issue—feeding, hygiene, supervision, mobility assistance, medication, or medical treatment—because different conduct within the same facility may fall on different sides of the MICRA line. Care plans and staffing records may be central to that functional inquiry.

The mixed disposition matters as well. Rejection of the MICRA cap did not restore every component of the original verdict or establish liability against every affiliated defendant. Practitioners should read the published classification ruling together with the case-specific rulings on economic damages and organizational relationships before calculating the judgment that will follow on remand.

On remand, the trial court must implement the appellate directions without reimposing the $250,000 noneconomic ceiling. The restored award remains subject to the portions of the judgment the appellate court affirmed, so the final accounting requires careful attention to each category of damages and each defendant.

Read the full opinion (PDF) · Court docket

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