(a)  A person contracting with a provider for continuing care may terminate the continuing care contract, and the provider shall be liable to the person contracting for continuing care for repayment of all fees paid to the provider, facility, or person violating this chapter, together with interest thereon at the legal rate for judgments, court costs, and reasonable attorney’s fees, less the reasonable value of care and lodging provided to the resident prior to the termination of the contract and for damages if after June 18, 1987 the provider or a person acting on the provider’s behalf, with or without actual knowledge of the violation, entered into a contract with the person:

(1)  For continuing care at a facility which has not registered under this chapter;

(2)  Without having first provided to the person a disclosure statement meeting the requirements of this chapter and not omitting a material fact required to be stated therein or necessary in order to make the statements made therein not misleading, in light of the circumstances under which they are made; or

(3)  If the contract does not meet the requirements of § 23-59-6.

Terms Used In Rhode Island General Laws 23-59-12

  • Continuing care: means providing or committing to provide board, lodging, and nursing services to an individual, other than an individual related by blood or marriage: (i) pursuant to an agreement effective for the life of the individual or for a period in excess of one year, including mutually terminable contracts, and (ii) in consideration of the payment of an entrance fee and/or periodic charges. See Rhode Island General Laws 23-59-1
  • Contract: A legal written agreement that becomes binding when signed.
  • Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
  • Department: means the Rhode Island state department of health. See Rhode Island General Laws 23-59-1
  • Facility: means the place or places in which a person undertakes to provide continuing care to an individual. See Rhode Island General Laws 23-59-1
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • person: may be construed to extend to and include co-partnerships and bodies corporate and politic. See Rhode Island General Laws 43-3-6
  • Provider: means any person, corporation, partnership, or other entity that provides or offers to provide continuing care to any individual in an existing or proposed facility in this state. See Rhode Island General Laws 23-59-1
  • Resident: means an individual entitled to receive continuing care in a facility. See Rhode Island General Laws 23-59-1

(b)  A person who willfully or recklessly aids or abets a provider in any act prohibited by this section shall be liable as set out in subsection (a) of this section.

(c)  The department shall have no jurisdiction to adjudicate controversies concerning continuing care contracts. A breach of contract shall not be deemed a violation of this chapter. Termination of a contract pursuant to subsection (a) shall not preclude the resident’s seeking any other remedies available under any law.

History of Section.
P.L. 1987, ch. 101, § 1.