The Hernandez Verdict
“Mildred Hernandez died alone in the cold because the large public REIT and private equity companies that were responsible for overseeing Greenhaven Estates turned a blind eye to operations at the facility that had been dangerous to residents for several years before Mildred’s death.”
Ed Dudensing
Mildred Hernandez lived at Greenhaven Estates in Sacramento because of her dementia diagnosis. On February 12, 2019, she exited a door that locked behind her to a staircase that led to the cold outside air (38-degree weather). She froze to death at the age of 100 in the interior courtyard on the facility grounds.
Evidence presented at trial showed that Hernandez was a known elopement risk and that the facility failed to implement adequate safeguards to protect her. The jury heard evidence of neglect, including the facility’s failure to ensure that residents received appropriate care plans and assistance after staff observed changes in their conditions. Jurors also heard extensive evidence that Greenhaven Estates had been operating in a state of serious disarray for at least three years before Hernandez’s death and that the facility was already facing a state accusation seeking revocation of its license due to systemic care failures. Colony Capital, the publicly traded Real Estate Investment Trust (REIT), and Formation Capital, the private equity investment firm, knew of ongoing operational failures at Greenhaven Estates but failed to take meaningful action to address them.
A Facility in Disarray
At trial, the Dudensing Law team, led by Ed Dudensing, demonstrated how the facility was embedded within a layered corporate structure typical of REIT/private equity–owned and operated senior housing facilities. Frontier Management oversaw day-to-day operations, while Formation Capital served as the asset manager. Above Formation Capital sat Colony Capital, a publicly traded REIT with an approximate market value of $2.82 billion. It was the beneficial owner of the facility as part of its larger “Eclipse portfolio.”
Jurors heard that, despite years of safety issues and regulatory concerns, the REIT and PE owners continued to collect returns on their investment while Mildred and other residents remained at serious risk. Jurors learned about the facility’s understaffing, inadequate training, and insufficient supervision, a deliberate choice by the defendants to maximize profits. For Mildred, these failures proved fatal, and she spent her final hours alone, as she froze to death on facility grounds.
A Record Verdict
On March 3, 2026, a Sacramento County jury returned a $110 million total verdict in favor of Mildred Hernandez and her family. Ed Dudensing was lead counsel for the plaintiffs and Jay Renneisen, also of Dudensing Law, was the second chair. The case was heard by Sacramento Superior Court Judge Jeffrey Galvin. The jury held Colony Capital, the publicly traded REIT, and Formation Capital, the private equity investment firm that oversaw Greenhaven Estates, responsible for corporate decisions that left residents at serious risk.
The jury found that the corporate defendants engaged in conduct constituting malice, oppression, and/or fraud. The verdict includes $7.5 million for Mildred Hernandez’s pre-death pain and suffering, $2.7 million in wrongful death damages awarded to her four adult daughters, $92 million in punitive damages against Colony Capital, and $8 million in punitive damages against Formation Capital.
The Verdict’s Meaning
“This $110 verdict confirms what we knew from day one: Mildred Hernandez died alone in the cold because the large public REIT and private equity companies that were responsible for overseeing Greenhaven Estates turned a blind eye to operations at the facility that had been dangerous to residents for several years before Mildred’s death,” said Ed Dudensing. “When Mildred died, the state had filed an Accusation to revoke its licenses because of systemic care failures. Colony Capital and Formation Capital were well aware of these failures and had all the necessary resources to address them, but they failed to act. Corporations that reap the profits of operations of facilities like Greenhaven Estates must be held to account when they fail to do their jobs. We are proud to have secured this outcome for the Hernandez family and remain steadfast in advocating for the rights and protections of vulnerable individuals.”
In a statement following the verdict, the Hernandez family said: “Our mother deserved to live out her final years with dignity, safety, and compassion. Instead, she died alone in the cold because Greenhaven Estates and its corporate overseers failed to provide the most basic protection they promised. While no verdict can bring our mother back, we hope this outcome will prevent other families from suffering the same heartbreak and force these companies to prioritize the well-being of the vulnerable seniors entrusted to their care. We are grateful to our attorneys for their tireless dedication and to the jury for recognizing that what happened to our mother was wrong and preventable.”
Read more about the verdict in coverage from KCRA Sacramento, California Post, Sacramento Business Journal, Little Things, The Daily Journal, The Sacramento Bee, ABC 10, The Recorder, andALM.