Unconstitutional Retaliation Settlement: $25 Million to Former Nursing Home Owners

New York State will pay $25 million to the former owners of a Rochester nursing home for the state's 1999 unconstitutional retaliation action under a settlement reached last month. The state decided to reach a settlement after a federal jury in Rochester determined that New York State Department of Health ("DOH") officials had forced the 1999 closure of the Beechwood Nursing Home in retaliation against its owners. The jury was scheduled to determine how much to award its former owners, but the state decided to reach a $25 million settlement instead.

The nursing home's former owners, Olive Chambery, and her son, Brook Chambery, sued the state in 2002, alleging that the state revoked Beechwood's operating license in 1999 in retaliation for challenges the Chamberys had lodged to regulators' complaints. Ultimately, five DOH officials were found liable for the illegal revocation of the facility's operating license, with jurors finding the presentation of provocative emails written by DOH officials to be indicative proof of the state's malice.

As a result of the 1999 shut down, the Chamberys were forced to lay off the Beechwood staff and send its patients to other facilities. Beechwood was eventually sold at a foreclosure, now owned by the City of Rochester and still vacant. The August settlement comes after a 13 year legal fight by the Chambery family to restore the family name and the reputation of the business they built.

Dreyer Boyajian LLP represents businesses and individuals who are victims of retaliatory actions by the government and public and private employers. If you, your business, or someone you know has been retaliated against, contact Dreyer Boyajian LLP to speak to one of our attorneys for a free consultation. No matter what particular circumstances your case involves, Dreyer Boyajian LLP will ensure that your rights are protected and you receive full compensation for your loss.


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