PR firm hired by Andover Subacute during pandemic hasn't been paid, lawsuit says

Lori Comstock, New Jersey Herald
·3 min read

A public relations company hired last year by a troubled Sussex County nursing home ravaged by the pandemic is suing the facility, claiming they have yet to receive tens of thousands of dollars in payments.

Mercury Public Affairs, a high-stakes public strategy firm, is seeking upwards of $157,500 from Alliance Healthcare Holdings, who manages Andover Subacute II — payments for services they say they provided to help boost the struggling facility's reputation after police found 17 bodies piled in a "makeshift" morgue at the height of the pandemic.

The Delaware-based firm with an office in Trenton contracted with Alliance's CEO Chaim "Mutty" Scheinbaum in April 2020 to provide crisis, reputation and issues management and strategic media relations, according to the lawsuit filed in Sussex County Superior Court.

A soldier with the National Guard is seen in front of the entrance to the Andover Subacute and Rehabilitation II building on May 8.
A soldier with the National Guard is seen in front of the entrance to the Andover Subacute and Rehabilitation II building on May 8.

The PR company was contracted to work closely with Lowenstein Sandler, a law firm Scheinbaum hired to provide legal services, and get paid $35,000 per month to help a devastated long-term care facility that swiftly came under criticism for quality of care, inadequate staffing and controversial business practices.

While a defense lawyer is not listed in court records, Christopher Porrino, who previously served as Scheinbaum's attorney on other matters, did not immediately respond when contacted Tuesday. Scheinbaum also did not respond.

Mercury began providing services on April 17, 2020, just days after police made their startling discovery and media outlets in the tri-state area flocked to the Mulford Road facility. Mercury says they were hired to continue their services in May on a monthly basis, but by December 2020, Alliance was behind on payments.

Scheinbaum, the suit states, made partial payments and acknowledged the debt without objection. The lawsuit does not make mention of Louis Schwartz, who is listed as co-owner of Andover Subacute II in federal nursing home data.

On June 1, 2021, Scheinbaum agreed to settle the bill for $175,000 for all services provided, according to the lawsuit, and promised to pay $87,500 in two equal payment. The first payment was made, Mercury said, but Scheinbaum "failed and refused" to make the second payment.

Mercury is seeking $157,500 for breach of contract or, as an alternative, the amount owed of $87,500 and any such relief the court sees just.

Andover Subacute and Rehab Center was over whelmed with 17 bodies at their morgue that could only hold 4 bodies in Andover Township, N.J., in April 2020.
Andover Subacute and Rehab Center was over whelmed with 17 bodies at their morgue that could only hold 4 bodies in Andover Township, N.J., in April 2020.

More lawsuits, fines

The lawsuit is the latest against the long-term care facility and comes a month after a federal appeals court served the operators of Andover Subacute a major setback after ruling two COVID-19 lawsuits against them should proceed in state court.

The facilities' owners sought to move the lawsuits filed by some families of the deceased to a federal court, citing they were protected under an emergency law that shields them from legal action.

The ruling is believed to have set a precedent for other such lawsuits against nursing homes moving forward.

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A scathing federal health inspection report detailed the conditions inside the facility in April 2020 when inspectors determined non-compliance "caused or was likely to cause" serious injury or death to residents in the facility. The Centers for Medicare and Medicaid, a division of the U.S. Department of Health and Human Services, imposed a civil penalty of $220,235 during a 15-day period in which the facility was deemed in “immediate jeopardy."

While the owners remain the same, Andover Subacute I and II underwent name changes earlier this year: Andover Subacute I was renamed Limecrest Subacute and Rehabilitation Center and Andover Subacute II was renamed Woodland Behavioral and Nursing Center.

But despite the name change and new signage, there are still 25 positive cases of COVID-19 at the former Andover Subacute II, according to an active outbreaks list updated Monday by the New Jersey Department of Health. Since early 2020, 83 residents in both Subacute I and II have died and over 270 have tested positive for COVID-19, data from the Sussex County Division of Health shows.

Lori Comstock can be reached on Twitter: @LoriComstockNJH, on Facebook: www.Facebook.com/LoriComstockNJH or by phone: 973-383-1194.

This article originally appeared on New Jersey Herald: Andover Subacute II nursing home hit with lawsuit by PR firm