REKHTER v. STATE, DSHS

No. 86822-1.

323 P.3d 1036 (2014)

180 Wn.2d 102

Leya REKHTER, an individual receiving Medicaid benefits under the Community Options Program Entry System (COPES), and Alex Zimmerman, an aggrieved live-in care provider for an individual in the COPES program, Lisa R. Fuchser, an individual receiving Medicaid benefits under the Medicaid Personal care (MPC) program, and Judith L. Alberts, a live-in care provider for an individual in the MPC program, and Paul Raccheta, a live-in care provider for an individual in the COPES program, and others similarly situated, Respondents/Cross-Appellants, v. STATE of Washington, DEPARTMENT OF SOCIAL AND HEALTH SERVICES, a Washington State Agency, Robin Arnold-Williams (individual and official capacities), Secretary of DSHS, Dennis Braddock (individual and official capacities), former Secretary of DSHS, Kathy Leitch (individual and official capacities), Assistant Secretary for the Aging and Disability Services Administration, Jane and John Doe Nos. 1 thru 100, Appellants/Cross-Respondents. Natasha Pfaff, by and through her guardians, Maureen and Donald Pfaff, individually and on behalf of all other similarly situated persons, Respondent/Cross-Appellant, v. Robin Arnold-Williams, in her official capacity as the Secretary of Washington State Department of Social and Health Services, and The Washington State Department of Social and Health Services, Appellants/Cross-Respondents. Service Employees Internationa] Union 775, on behalf of the individual providers it represents, and Cindy Weens, individually and on behalf of all other similarly situated persons, Respondents/Cross-Appellants, v. Robin Arnold-Williams, in her official capacity as the Secretary of Washington State Department of Social and Health Services, and the Washington State Department of Social and Health Services, Appellants/Cross-Respondents.

Supreme Court of Washington, En Banc.

April 3, 2014.


Attorney(s) appearing for the Case

Jay Douglas Geek , Carrie L. Bashaw , Michael Mackaman Young , Elizabeth Christina Beusch , Office of the Attorney General, Olympia, WA, for Appellant/Cross-Respondent.

Darrell L. Cochran , Pfau Cochran , Vertetis Amala PLLC, Tacoma, WA, Dmitri L. Iglitzin , Jennifer L. Robbins , Schwerin Campbell , Barnard Iglitzin & Lav, Michael Thomas Pfau , Pfau Cochran, Vertetis Amala PLLC, Seattle, WA, Gregory A. McBroom , John James White Jr. , Kevin Blair Hansen , Livengood, Fitzgerald, Alskog, PLLC, Kirkland, WA, for Respondent/Cross-Appellant.


OWENS, J.

¶ 1 In this class action case, a jury found that the Department of Social and Health Services (DSHS) violated the implied duty of good faith and fair dealing in its contracts with individual providers who live with the DSHS clients for whom they provide care. The jury found that the providers incurred $57,123,794.50 in damages, and the judge awarded an additional $38,652,219.85 in interest. The DSHS clients who lived with their providers also filed...

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