Inside a Summerset Richmond village unit. Photo / David Chadwick
Inside a Summerset Richmond village unit. Photo / David Chadwick
New Zealand’s second-largest listed retirement company was ordered to pay $37,000 after a complaint from a woman about the care of her late husband, who suffered dementia.
Summerset Group, with a $2.3 billion NZX market capitalisation, was ordered to pay the money after a disputes panel formed by Te AraAhunga Ora Retirement Commission heard Vilma Flanagan’s complaints against a Nelson village and upheld all five of those.
Summerset Villages (Richmond) was ordered to pay compensation of $37,892 to the woman for the proven breach of its obligations under the occupational rights agreement and the code of practice.
But Summerset appealed that decision to the District Court at Nelson, although it paid the woman’s costs in that hearing.
Vilma Flanagan complained about Summerset’s breach of obligation over her now late husband Warren Flanagan’s care. He was diagnosed with Lewy Body Dementia so the couple bought a right to occupy a care suite at Nelson’s Summerset Richmond, the dispute decision said.
He moved in during June 2021 but deteriorated fast so that by October he was transferred to a public hospital’s dementia facility. He died just six months later, in December that year.
His widow then complained to the Retirement Commission that Summerset had failed in its contractual obligations to provide him with quality care and support in the short time he was at the village.
The disputes panel ruled in favour of all five complaints:
Claim one: Summerset failed to meet the expectations created in its initial representations and contract with the applicant;
Claims two and three: Summerset breached its obligations to keep the applicant informed about the re-occupation and subsequent sale of his unit;
Claim four: the right to a speedy and efficient response for resolving disputes was not achieved;
Claim five: she was not notified in a timely manner of shower flooding.
She complained about Summerset’s failure to make a sensory room available to her husband, about effective supervision and suitable activities, and the fact that when he left Summerset for the hospital where suitable activities were provided, his attitude, demeanour and behaviour improved noticeably.
Unhappy with the panel’s decision against it, Summerset appealed that to the District Court, challenging the panel’s right to jurisdiction to rule about care issues in the matter.
The Nelson village where Warren Flanagan was in a care suite, before he was moved to the public hospital, where he died. Photo / David Chadwick
But Judge Tony Zohrab said the panel was correct in acknowledging it could consider care issues.
The panel went further than that and focused on how services were provided, which as a care issue was beyond its powers, he noted.
By failing to provide adequate access to the sensory room, Summerset breached the occupational right agreement, leading to a legitimate complaint under the law, the judge decided.
Although he had taken a different approach to the panel, his finding was substantially the same so he did not propose to interfere with the outcome.
He said there is no hard “line in the sand” and that by failing to provide adequate access to the sensory room, Summerset breached the occupational right agreement, leading to a legitimate complaint under the law.
“The occupational right agreement, along with the representations made to Mrs Flanagan, were that Mr Flanagan would be able to access the room as he pleased - for his own benefit. The right of Mr Flanagan as a person to self-determination and to fill his own days was not extinguished by his condition, or his also being provided with healthcare services,” Judge Zohrab decided.
Summerset appealed the case to the District Court “as a matter of principle” and didn’t seek to change the practical outcome for Flanagan. Summerset met her costs on the appeal so no costs ruling was necessary, the judge noted.
Asked about the situation today, Summerset’s communications head Logan Mudge said the business had looked at its processes and made changes as a result.
“We accept we should have done better with the communication around the sale of the unit. We disagree with any inference that our care for Mr Flanagan was poor or not up to standard,” he said, adding that the fine had been paid.
Summerset shares are trading around $9.89, down around 3 per cent annually.
Anne Gibson has been the Herald’s property editor for 23 years, has won many awards, written books and covered property extensively here and overseas.
