Government Law

Nursing homes ask court to nix Cohen Milstein probe and void contingency-fee pact with state AG

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Saying that Pennsylvania’s state health department has exclusive authority over the regulation of nursing homes, a group of 19 facilities has sued the state attorney general over an ongoing probe by a private law firm.

Its Commonwealth Court petition seeks to void a contingency-fee agreement between the AG’s office and Cohen Milstein Sellers and Toll. The group also seeks a court-ordered stop to an ongoing probe by the law firm in which nursing home operators are being subpoenaed for information about their staffing levels, reports the Harrisburg Patriot-News.

The contingency-fee pact calls for Cohen Milstein to get 17 percent of any recovery up to $100 million; 10 percent of any recovery beyond that, up to $200 million; and 5 percent of any amount obtained above $200 million.

In addition to arguing that the health department, rather than the AG’s office, should initiate any probe of nursing home operators, the petition also says that the way in which the investigation is being handled discourages non-monetary resolution of any issues and deprives the operators of legal and procedural rights.

A spokesman for state Attorney General Kathleen Kane said Friday that the office has received the petition and is reviewing it, the newspaper reports.

The contingency-fee contract with Cohen Milstein was initiated by Kane’s predecessor, Linda Kelly.

Related coverage:

New York Times (reg. req.): “Lawyers Create Big Paydays by Coaxing Attorneys General to Sue “

See also:

ABAJournal.com: “Can Chicago deputize law firm to do city’s job? No, say companies sued in painkiller-marketing case”

Reuters: “Law firm can stay in Chicago painkiller case”

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