Aud v. RRT Enterprises, the Holland Framework, and a Practical Defense Playbook
Rebecca Adelman, Esq., Adelman Firm & David Alfini, Esq., Hinshaw & Culbertson LLP
July 2026
Prepared for owners, operators, insurers, claims professionals, risk managers, and defense counsel in senior living and long-term care.
On July 22, 2026, the California Court of Appeal reinstated a jury’s $1.84 million noneconomic damages award against a skilled nursing facility in Aud v. RRT Enterprises, LP, holding that MICRA’s cap does not apply to injuries caused by custodial care failures such as supervision, call-light response, and staffing. Aud is the first published decision applying the Holland framework to a full jury verdict, and it closes two escape routes defendants had hoped would survive: a correct care plan is no defense to a failed one, and no egregious conduct is required to lose the cap.
The result is that simple negligence in custodial care now carries uncapped noneconomic exposure in California, and the plaintiffs’ bar has a published roadmap for pleading around MICRA entirely.
Rebecca Adelman, Esq., Founder of Adelman Firm, and David Alfini, Esq., Partner at Hinshaw & Culbertson LLP, co-authored a Legal White Paper which walks through the doctrinal history, the statutory framework, and a stakeholder-by-stakeholder defense playbook for operators, insurers, and defense counsel.
Rebecca Adelman, Esq. · Adelman Firm, PLLC · 901-529-9313 · rebecca@adelmanfirm.com
David Alfini, Esq. · Hinshaw & Culbertson LLP · 312-704-3193 · dalfini@hinshawlaw.com