California Superior Court awards $12.5 million in elder sex assault case

In a record award, a California jury has awarded $12.5 million in damages to a 94-year-old woman who was sexually assaulted at an elder-care facility.

The award, which followed a five-week trial, included $6 million in compensatory damages and $6.5 million in punitive damages to Sophie Schwartz for a December 2007 assault at the Oakdale Heights facility in Santa Clarita, Calif.

Jose Vazquez, an illegal immigrant who worked as a dietary aide at the center, is currently serving an eight-year sentence for attempted rape.

Gregory Owen, who represented Schwartz, said that the facility failed to properly screen employees, short-staffed units and provided inadequate supervision, allowing the assault to occur.

Defense attorney Sean Cowdrey called the verdict "excessive," and said he plans to appeal.

"The defendants agree that while what was done to this plaintiff was terrible, there was no evidence that there was an actual rape," he said. "And with regard to damages, it was purely a non-economic damages, emotional distress case. The evidence was clear that this 94-year-old woman had severe dementia, and was unable to recall the events that occurred. "

The jury, however, responded to Owen's three-hour closing argument, in which he told jurors they "had the ability in this particular case to set our community standards. "

"We were either going to allow a company from out of town to treat people like this, or we could enforce the rules and tell people you're going to pay the price," Owen said.

Ponzi scheme alleged

At the time of the incident, the elder-care facility was operated by a company headed by James Koenig, who was charged in May 2009 with operating a $200 million Ponzi scheme.

According to the California Attorney General's office, Koenig and two co-defendants would purchase an assisted living facility and sell it to one of their affiliate companies. Koenig and the others in the Ponzi scheme allegedly bled the elder-care facilities by cutting costs, permitting understaffing and lax security and supervision.

Evidence at the trial showed that Vazquez had submitted false IDs with multiple dates of birth, different pictures and different spellings of his name.

"Yet these people hired him and gave him a key to every patient's room," Owen said.

But Cowdrey countered that evidence showing Vazquez was an illegal immigrant "was figured out long after the fact, after he had been arrested and the police informed that he had given false information,"

He added that in two years of employment at the center, Vazquez had never been flagged for disciplinary action.

Vazquez's own deposition, however, was damaging: he testified that after getting drunk on the job, he went to Schwartz's floor and entered her room with a master key that allowed employees access to all the residents' rooms.

There was no supervisor on duty at the time of the incident, which occurred in the evening, Owen said.

Vazquez was caught in the act of sexually assaulting Schwartz when an aide came into the room.

Cowdrey argued that there was no physical evidence of rape.

"All of the medical experts and treating and examining physicians all were consistent in saying there was no ... evidence of physical trauma," Cowdrey said.

Owen said Schwartz's trauma, however, was described by the eyewitness, who testified that when she came in the room, Schwartz "was screaming like she was being murdered. "

Damaging lies

During the trial, elder-care experts testified that the facility's staffing levels and lack of supervision fell below minimal standards of care. A security expert testified about the lax security.

Owen said the facility's executive administrator, Muriel DeJesus, damaged the defense by lying on the stand.

"First, she testified in deposition that there were no supervisors on staff [at the time of the incident], then at trial she said there were. Then on cross, she admitted there weren't and that she had lied about it," Owen said.

Jurors deliberated two days before awarding compensatory damages on Feb. 26, and two hours before awarding punitive damages on March 1.

The judgment is one of the largest verdicts ever awarded for emotional trauma without evidence of physical injury, according to Owens.

The jury found the defendant corporations purposefully falsified employment documents at the time of Vazquez's hiring and violated several California laws governing the care of residents with dementia.

Oakdale Heights Management Corp. and the Oakdale Heights elder-care facility have been closed down, but a successor company was found 25 percent liable; Murielle DeJesus, the facility's manager, was determined to bear 25 percent of the fault and Vazquez was ruled 50 percent liable.

Lloyds, London is the insurance carrier for all the defendants, except Vazquez. While the apportionment of liability was only for compensatory damages, not punitives, Owen acknowledged that any damages against Vazquez are uncollectible.

Owen said an offer to settle the case for the insurance policy limit of $1 million was rejected by the defendants, who offered only $75,000.

Plaintiff's attorneys: Gregory and Susan Owen of Owen, Patterson & Owen in Santa Clarita, Calif.

Defense attorney: Sean D. Cowdrey of Beach, Whitman, Cowdrey in Oxnard, Calif.

The case: Schwartz v. Oakdale Heights Management Corp.; Feb. 26, 2010 (compensatories), March 1, 2010 (punitives); California Superior Court, Los Angeles County, Chatsworth, Calif.; Judge Melvin D. Sandvig.