FOR PUBLICATION

APPELLANT PRO SE: ATTORNEY FOR APPELLEE:

ALEXIS HUTCHISON PAUL RICHARD RAUCH

Greenfield, Indiana Harrison & Moberly, LLP

Indianapolis, Indiana

IN THE

COURT OF APPEALS OF INDIANA

ALEXIS HUTCHISON and )

MARTHA FARBER, deceased, )

)

Appellant-Defendant, )

)

vs. ) No. 30A01-1307-SC-316

)

TRILOGY HEALTH SERVICES, LLC, )

d/b/a SPRINGHURST HEALTH CAMPUS, )

)

Appellee-Plaintiff. )

APPEAL FROM THE HANCOCK SUPERIOR COURT

The Honorable Dan E. Marshall, Judge

The Honorable R. Scott Sirk, Commissioner

Cause No. 30D02-1209-SC-1030

January 30, 2014

OPINION - FOR PUBLICATION

KIRSCH, Judge
2

Alexis Hutchison (“Hutchison”) appeals a small claims court (“trial court”) 

judgment in favor of Trilogy Health Services, LLC, d/b/a Springhurst Health Campus 

(“Springhurst”), on Springhurst’s claim against Hutchison and her now-deceased mother, 

Martha Farber (“Farber”), for payment of services provided to Farber while she was a 

resident at Springhurst. Hutchison raises three issues that we consolidate and restate as:

whether the trial court erred when it entered a judgment in favor of Springhurst and against 

Hutchison.

We reverse and remand.

FACTS AND PROCEDURAL HISTORY1

For a number of years, Farber was ill with cancer, requiring various trips to, and 

stays at, hospitals. After one of her hospital visits, and finding that she was in need of 

constant care, she became a resident at Springhurst, a skilled nursing facility. Farber was 

admitted to Springhurst on November 11, 2011. She stayed at Springhurst through and 

including February 5, 2012, when Farber moved into her own apartment. 

On November 11, 2011, Hutchison signed Springhurst’s Move-In Agreement 

(“Agreement”) as a “Responsible Party/Agent.” Appellant’s App. at 28. The Agreement 

stated in pertinent part:

The Resident . . . may designate a person to act on the Resident’s behalf as a 

Responsible Party/Agent. If the Resident so designates a Responsible 

Party/Agent, the Resident shall provide the Facility with a copy of a written 

agreement that authorizes such individual to manage, use, control or access 

the Resident’s income, financial account(s) or other resources (i.e. real estate 

or other property), inspect and copy the Resident’s records, and execute this 

 

1 We note that on October 7, 2013, Springhurst filed with this court a Notice of Non-Filing of Brief 

for Appellee, stating its intention not to file an appellate brief.
3

Agreement on the Resident’s behalf. . . . The Responsible Party/Agent 

further agrees to assist in establishing a financial plan for payment of services 

. . . and agrees to pay for the Resident’s services and supplies that are billed 

by the Facility. The Responsible Party/Agent further agrees to pay the 

Facility the full amount of the Resident’s income and resources that the 

Responsible Party/Agent controls or accesses, and agrees to be personally 

responsible and liable to the Facility for the income and resources of the 

Resident that the Responsible Party/Agent withholds, misappropriates for 

personal use, or otherwise does not pay over to the Facility for the Resident’s 

benefit or apply towards payment of the Resident’s financial obligations to 

the Facility under this Agreement.

Id. at 13.

On September 28, 2012, Springhurst filed a notice of claim (“Claim”) in the small 

claims division of the Hancock Superior Court, naming as defendants Farber and Hutchison

(collectively “Defendants”). The Claim sought judgment against Defendants in the amount 

of $1,716.90 for services rendered to Farber, plus interest, costs, and attorney’s fees. The 

matter was set for trial on November 26, 2012. After continuances by both sides,

2

the 

matter was set for trial on February 19, 2013. On February 14, Hutchison wrote to the trial 

court explaining Farber’s grave health, which had declined. On February 15, 2013, the 

trial court denied what it interpreted as a motion to continue, stating that Defendants had 

failed to serve Springhurst with the letter (motion), and on February 21, 2013, the trial 

court entered a default judgment in favor of Springhurst; Farber passed away that same 

day.

3

 However, in March 2013 Hutchison filed a Notice of Appeal, which the trial court 

treated as a motion to set aside, and to it Hutchison attached verification that she faxed the 

 

2 Defendants have proceeded pro se throughout all trial court and appellate proceedings.

3 According to Hutchison, Farber “left no estate . . . there was nothing to probate.” Appellant’s Br.

at 20; Tr. at 19 (“She had no assets.”).
4

February 15 letter to counsel for Springhurst and that it was received; thereafter, the trial 

court set aside the previously-entered default judgment and set the matter for trial on May 

24, 2013.

At the May 24 trial, Springhurst called as its only witness Dionne Fields (“Fields”), 

who was the current business office manager4 and custodian of business records at 

Springhurst. Fields testified to the above-cited language from the Agreement concerning 

the Responsible Party/Agent, and she testified that the outstanding charges consisted of

bed hold fees, beauty shop services, and respiratory equipment. Upon cross examination, 

Hutchison asked Fields, “Do you have in your documents any power of attorney giving me 

any sort of financial authority for my mother?” Tr. at 17. Fields replied, “No I do not.” 

Id. Fields also agreed she was not present when Hutchison signed the document and thus 

was not present when “assurances” were made to Hutchison. Id. 

During her case in chief, Hutchison testified that she was not Farber’s power of 

attorney and “had no authority to manage her funds,” including her pension or social 

security checks. Id. at 19. Hutchison reaffirmed, “I have no authority to use my mother’s 

income for anything. I was not her power of attorney,” noting the only thing she could 

have done was point out to her mother that a bill was owed. Id. at 21. Hutchison also 

testified that her mother only became aware of the debt owed after she was no longer a 

resident at Springhurst and that her mother disputed the bill, other than $167 in hair salon 

services. Hutchison also called as a witness her husband, David Hutchison (“David”), who 

 

4 Fields was not the business office manager when Farber was a resident at the facility. 
5

was present at the meeting on November 11, 2011, when Hutchison signed the Agreement. 

David testified that when Hutchison inquired whether signing the Agreement would make 

her personally financially responsible, the Springhurst representative answered with “an 

emphatic no.” Id. at 23. 

The trial court took the matter under advisement. On June 13, 2013, the trial court 

issued an entry finding in favor of Springhurst and against Hutchison in the amount of 

$2,610.87 plus court costs. Hutchison filed a motion asking for clarification and an order 

that would specify findings of fact with reference to evidence presented. In response to 

this motion, the trial court thereafter issued another entry stating “the court found the 

plaintiff proved the defendant liable pursuant to contract and Indiana case law for the sum 

of $2,610.87.” Appellant’s App. at 10. Springhurst initiated proceedings supplemental to 

collect the judgment, but the trial court granted Hutchison’s motion to stay further 

proceedings pending her appeal. Hutchison now appeals. 

DISCUSSION AND DECISION

This case was tried before the bench in small claims court, and in such cases, we 

review for clear error. Trisler v. Carter, 996 N.E.2d 354, 356 (Ind. Ct. App. 2013). In our 

review, we presume that the trial court correctly applied the law, and we will not reweigh 

the evidence or determine the credibility of witnesses but will consider only the evidence 

that supports the judgment and the reasonable inferences to be drawn therefrom. Id. 

Although we are particularly deferential to the trial court in small claims actions, where 

trials are informal, with the sole objective of dispensing speedy justice between the parties 

according the substantive rules of law, we owe no deference to a small claims court’s legal 
6

conclusions regarding questions of law, which we review de novo. Trinity Homes. LLC v. 

Fang, 848 N.E.2d 1065, 1068 (Ind. 2006). A judgment is clearly erroneous when a review 

of the materials on appeal leaves us firmly convinced that a mistake has been made. Trisler, 

996 N.E.2d at 356. Here, the judgment rendered in favor of Springhurst was a general 

judgment, unaccompanied by findings and conclusions; a general judgment will be 

affirmed upon any legal theory consistent with the evidence. Clark v. Hunter, 861 N.E.2d 

1202, 1206 (Ind. Ct. App. 2007). In this case, Springhurst elected not to file an appellee’s 

brief. An appellee who does not respond to the appellant’s allegations of error on appeal 

runs a considerable risk of reversal. Trisler, 996 N.E.2d at 356. Where an appellee has 

not filed a brief on appeal, the appellant’s brief need only demonstrate prima facie

reversible error in order to justify a reversal. Id. at 356-57. Prima facie error in this context 

is defined as, “at first sight, on first appearance, or on the face of it.” Trinity Homes, 848 

N.E.2d at 1068.

In this case, Springhurst’s claim is that Hutchison is contractually liable for the 

outstanding bill because she signed the Agreement as a Responsible Party and, therefore, 

was required to use Farber’s money to pay the bill for amounts owed to Springhurst. As 

Hutchison correctly asserts, Congress has imposed limitations on the concept of a family 

member being financially responsible for a family member’s care. For instance, federal

law prohibits a nursing home certified as eligible for Medicare or Medicaid reimbursement 

from requiring guarantees as a condition of admission or extended care: 42 U.S.C. 

§§1396r(c)(5)(A)(ii) and 1395i-3(c)(5)(A)(ii) provide that with respect to admission to a 

nursing facility, the facility “must not require a third party guarantee of payment to the 
7

facility as a condition of admission . . . to, or continued stay in, the facility.” See also 42 

C.F.R. § 483.12(d)(2) (same). These provisions plainly prohibit facilities from 

conditioning admission upon a third party’s guarantee of private pay costs. However, the 

analysis does not end there. 

The federal statutes also state that Medicare-qualified and Medicaid-qualified 

facilities are not precluded from “requiring an individual, who has legal access to a 

resident’s income or resources available to pay for care in the facility, to sign a contract 

(without incurring personal financial liability) to provide payment from the resident’s 

income or resources for such care.” 42 U.S.C. §§ 1395i-3(c)(5)(B)(ii), 1396r(c)(5)(B)(ii); 

42 C.F.R. § 483.12(d)(2). A section in the Indiana Administrative Code concerning 

“admissions” to “comprehensive care facilities” provides likewise: 

The facility must not require a third party guarantee of payment to the facility 

as a condition of admission or expedited admission, or continued stay in the 

facility. However, the facility may require an individual who has legal access 

to a resident’s income or resources available to pay for facility care to sign a 

contract, without incurring personal financial liability, to provide facility 

payment from the resident’s income or resources.

410 Ind. Admin. Code 16.2-3.1-16.

5

 

Admission documents often use the term “responsible party” for third-party 

designations. See Katherine C. Pearson, The Responsible Thing to Do About “Responsible 

Party” Provisions in Nursing Home Agreements: A Proposal for Change on Three Fronts, 

 

5 We observe that the language of Indiana Code section 16-26-1-12(g), even though it does not 

govern admission into a skilled nursing facility, nevertheless similarly reflects the intention to limit a family 

member’s financial exposure for another’s care, stating that an individual appointed to consent to health 

care of another person, i.e., a health care representative, “does not become personally liable for the cost of 

the health care by virtue of that consent.” 
8

37 U. Mich. J.L. Reform 757, 764 (2004). While resident rights advocates have taken the 

position that third-party guarantee, or responsible party, provisions are inherently illegal, 

inconsistent with the goal of federal law, and are unenforceable, some courts have 

concluded that under federal law, third parties can “volunteer” to sign as guarantors of 

payment to nursing homes. Id. It appears Indiana courts have not yet expressly spoken to 

the legality of the responsible party provisions; although Hutchison urges us to declare that 

such provisions are unenforceable, we find it unnecessary to reach that issue today. 

The Agreement before us provided that the resident, in this case Farber, “may 

designate” a person to act on her behalf as a Responsible Party/Agent. Appellant’s App. at 

13. As such, Farber was permitted, but not required, to designate an individual to act on 

her behalf. The Agreement continued, 

If the Resident so designates a Responsible Party/Agent, the Resident shall 

provide the Facility with a copy of a written agreement that authorizes such 

individual to manage, use, control or access the Resident’s income, financial 

account(s) or other resources (i.e. real estate or other property), inspect and 

copy the Resident’s records, and execute this Agreement on the Resident’s 

behalf.

Id. (emphasis added). There is no evidence that Farber, or anyone else, provided 

Springhurst with any such document; indeed, the unrefuted evidence is that Springhurst 

did not possess any such document. Simply stated, there was no evidence that Hutchison 

ever had any authority to “manage, use, control or access” her mother’s income, financial 

accounts, or other resources. Hutchison repeatedly testified that she was not and never had 

been her mother’s power of attorney and never had any authority to access her mother’s 

money. Tr. at 19, 20, 21, 24. Springhurst presented no evidence to the contrary. 
9

The Agreement did not expressly define the term Responsible Party, but outlined 

the responsibilities and obligations, stating that the Responsible Party agreed “to pay the 

Facility the full amount of the Resident’s income and resources that the Responsible 

Party/Agent controls or accesses.” Appellant’s App. at 13 (emphasis added). That is, the 

Agreement obligated the Responsible Party to pay Springhurst only to the extent that the 

Responsible Party had access or control of the Resident’s income and resources. Again, 

the uncontroverted evidence presented here was that Hutchison possessed neither control 

nor access to Farber’s income and resources. Under the Agreement, the Responsible Party 

also agreed “to be personally responsible and liable to the Facility for the income and 

resources of the Resident that the Responsible Party/Agent withholds, misappropriates for 

personal use, or otherwise does not pay over to the Facility for the Resident’s benefit or 

apply towards payment of the Resident’s financial obligations to the Facility[.]” Id.

(emphasis added). No evidence was presented to establish or even suggest that Hutchison 

withheld or misappropriated Farber’s funds, and while Hutchison did not “pay over” 

Farber’s income or resources to Springhurst, there was no evidence that, at any time, she 

had any authority to do so.6 

Under the circumstances of this case, we find that Hutchison has demonstrated

prima facie reversible error; Hutchison agreed “to pay the Facility the full amount of the 

 

6 The facts of this case stand in contrast to a situation in which a son or daughter possessed a power 

of attorney over the parent’s financial affairs, or where that adult child misappropriated his or her parent’s 

bank account funds rather than pay the nursing home facility. See e.g., Sunrise Healthcare Corp. v. 

Azarigian, 821 A.2d 835, 837 (Conn. App. Ct. 2003) (daughter, who held a power of attorney for her 

mother, held liable for breach of contract for failing to comply with promise to use resident’s resources to 

pay nursing home where nursing home knew daughter held power of attorney and where daughter made 

gift transfers from her mother’s account of over $49,000).
10

Resident’s income and resources that the Responsible Party/Agent controls or accesses,” 

and there was no evidence presented that she ever had access to or control of Farber’s 

income or resources from which to make payment to Springhurst. Appellant’s App. at 13. 

We hold that the trial court erred when it entered judgment against Hutchison in favor of 

Springhurst, and we reverse the judgment of the trial court and remand with instructions to 

enter judgment for Hutchison.

Reversed and remanded.

FRIEDLANDER, J., and BAILEY, J., concur.