Justia Arbitration & Mediation Opinion Summaries

Plaintiffs Lisa Lombardo, Daniel Bates, and James Bates sued Gramercy Court as heirs of Elizabeth Stein, alleging wrongful death, negligence, elder abuse, and gross negligence due to the care Stein received at Gramercy Court's nursing facility. Stein developed bedsores and died shortly after being transferred back to the hospital. Gramercy Court petitioned to compel arbitration based on an agreement Lombardo signed on Stein's behalf, but the trial court denied the petition.The Superior Court of Sacramento County found that Stein's durable power of attorney did not grant Lombardo the authority to sign arbitration agreements on Stein's behalf. The court also determined that Stein did not give Lombardo ostensible authority through her actions. Additionally, the court ruled that the arbitration agreement was not enforceable against Lombardo's or the other plaintiffs' individual claims.The Court of Appeal of the State of California, Third Appellate District, reviewed the case and affirmed the trial court's decision. The appellate court held that Lombardo did not have actual or ostensible authority to bind Stein to the arbitration agreement. The durable power of attorney did not explicitly grant Lombardo the authority to enter into arbitration agreements, and there was no evidence that Stein's conduct led Gramercy Court to believe Lombardo had such authority. The court also concluded that the arbitration agreement did not apply to the plaintiffs' individual claims, as Lombardo was not a party to the agreement in her individual capacity. The appellate court affirmed the trial court's order denying Gramercy Court's petition to compel arbitration. View "Lombardo v. Gramercy Court" on Justia Law

In February 2013, the decedent was admitted to Elmcrest Care Center, suffering from Parkinson’s disease, dysphagia, and dementia. On August 4, 2017, he was found nonresponsive and later died in the hospital. The Estate of Jose de Jesus Ortiz, represented by Ericka Ortiz, filed a civil action against Elmcrest and its staff for elder abuse, neglect, negligence, willful misconduct, and fraud, alleging that their failure to provide necessary care led to his death. The trial court compelled arbitration based on an agreement signed upon the decedent’s admission.The arbitrator issued a First Interim Award on March 30, 2022, finding that the Estate did not meet its burden of proof on any claims. The award allowed for further submissions to address any omitted issues. The Estate requested an amendment, arguing the arbitrator had omitted damages for pre-death loss of dignity. The arbitrator issued a Second Interim Award on May 26, 2022, awarding $100,000 in damages for pre-death pain and suffering. Respondents moved to vacate this award, arguing the First Interim Award was final. The arbitrator denied the motion, stating the First Interim Award was not final and had omitted a necessary issue.The trial court initially denied the Estate’s petition to vacate the First Interim Award, ruling it was not final. However, it later vacated the Final Award and confirmed the First Interim Award, finding the First Interim Award had resolved all necessary issues. The Estate appealed.The California Court of Appeal, Second Appellate District, reversed the trial court’s order, holding that the First Interim Award was not final as it expressly reserved jurisdiction for further proceedings. The court directed the trial court to confirm the Final Award issued on September 30, 2022, which included the damages for pre-death pain and suffering. View "Ortiz v. Elmcrest Care Center, LLC" on Justia Law

In 2020, several residents at a skilled nursing facility died from coronavirus infections. Family members of the deceased sued the facility and its alleged alter egos, asserting claims including elder abuse, negligence, and wrongful death. The defendants moved to compel arbitration based on agreements signed by family members rather than the decedents. The trial court denied the motion, finding no evidence that the family members had authority to sign on behalf of the decedents, and that the agreements did not bind the family members in their individual capacities. For one agreement where a family member had power of attorney, the court exercised its discretion to deny arbitration to avoid conflicting results.The Shasta County Superior Court denied the motion to compel arbitration. It found that the defendants did not provide evidence that the family members had authority to sign the arbitration agreements on behalf of the decedents. Additionally, the court ruled that the agreements did not bind the family members in their individual capacities. For the agreement involving a power of attorney, the court denied arbitration to prevent conflicting rulings between court and arbitration proceedings.The California Court of Appeal, Third Appellate District, reviewed the case. It affirmed the lower court's decision, holding that the defendants failed to establish that the family members were authorized agents of the decedents. The court also found that the family members did not sign the agreements in their individual capacities, and thus were not bound by them. Furthermore, the court upheld the trial court's discretion to deny arbitration for the claim involving a power of attorney to avoid conflicting rulings. The order denying the motion to compel arbitration was affirmed. View "Hearden v. Windsor Redding Care Center" on Justia Law

The Supreme Court reversed the judgment of the district court denying Wind River Rehabilitation and Wellness's motion to compel arbitration in this action alleging medical malpractice, holding that the district court erred in denying the motion to compel arbitration.Plaintiff, the wrongful death representative of Loy Forshee, filed this action against Wind River, where Forshee lived when he fell and broke his hip, alleging medical malpractice. Wind River moved to compel arbitration under the parties' arbitration agreement. The district court denied the motion, concluding that Wind River waived his right to arbitration by waiting fourteen months to compel arbitration. The Supreme Court reversed, holding that the record did not support a conclusion that Wind River waived its right to arbitrate. View "Empres at Riverton, LLC v. Osborne" on Justia Law

Plaintiff suffered a stroke on August 18, 2009. He was hospitalized at St. John’s Regional Medical Center for two weeks, followed by a month in St. John’s inpatient rehabilitation facility. He entered Oxnard Manor, a skilled nursing facility, on October 3. Four days later, on October 7, Plaintiff signed an arbitration agreement. It stated that he gave up his right to a jury or court trial, and required arbitration of claims arising from services provided by Oxnard Manor, including claims of medical malpractice, elder abuse, and other torts. Plaintiff remained a resident at Oxnard Manor until his death nine years later, individually and as Plaintiff’s successors in interest, sued Oxnard Manor for elder abuse/neglect, wrongful death, statutory violations/breach of resident rights, and negligent infliction of emotional distress. Oxnard Manor filed a petition to compel arbitration. Both sides relied on medical records to demonstrate whether Plaintiff had the mental capacity to consent to the arbitration agreement.   The Second Appellate District affirmed. The court explained that evidence here that Plaintiff scored below the level necessary to “solve complex problems such as managing a checking account” supports the conclusion that he was unable to manage his financial affairs. But regardless of whether the presumption of Civil Code section 39, subdivision (b) applied, substantial evidence established that Plaintiff lacked the capacity to enter an arbitration agreement. View "Algo-Heyres v. Oxnard Manor" on Justia Law

On engaging services from Pacific Fertility Center, the plaintiffs signed “ ‘Informed Consent and Agreement to Perform Egg Cryopreservation” forms, providing that medical malpractice disputes were subject to arbitration. The plaintiffs signed separate arbitration agreements. Chart, which manufactures Pacific’s cryogenic storage tanks, and Praxair, which sold those tanks to Pacific and assisted with installation, were not signatories to either the informed consent or arbitration agreements.Following the failure of Tank Four, the plaintiffs in 54 coordinated cases filed suit. As to Chart and Praxair, the complaint alleged negligent failure to recall the tank, strict products liability (failure to warn, manufacturing defect, and design defect based on both the consumer expectations test and the risk-utility test), general negligence, and violation of the Unfair Competition Law. After the plaintiffs agreed to arbitrate their claims against Pacific, Chart and Praxair moved to compel arbitration, citing equitable estoppel. The court of appeal affirmed the denial of their motions. The plaintiffs’ claims are not premised on, nor did they arise out of, the plaintiffs’ fertility services agreements with Pacific. The issue of comparative fault and joint liability on certain issues does not inform the equitable estoppel analysis; the joint liability is not based on the same or similar legal theories and/or facts that underlie the obligations under the Pacific contracts. View "Pacific Fertility Cases" on Justia Law

The Supreme Court reversed the decision of the court of appeals reversing order of the circuit court denying the motion of Legacy Health Services, Inc. Cambridge Place Group, LLC, and Cambridge Place Properties, LLC (collectively, Defendants) to dismiss or stay this lawsuit and compel arbitration of the medical malpractice claims brought by Christopher Jackson, as guardian for Christine Jackson, his mother, holding the court of appeals erred.At issue was whether Christopher possessed the authority, as his mother's guardian, to enter a voluntary arbitration agreement that was not a prerequisite to the provision of care or services to his ward. The circuit court concluded that Christopher did not have that authority. The court of appeals reversed, holding that a guardian's authority to enter into contracts generally is within the ambit of what is reasonably inferable from the relevant statutes. The Supreme Court reversed, holding (1) guardians have the authority to bind their wards to contracts that limit or deprive the civil rights of their wards only to the extent necessary to provide needed care and services to the ward; and (2) because the arbitration agreement was not necessary to provide care or services to Christine, Christopher lacked the authority to enter into the arbitration agreement. View "Jackson v. Legacy Health Services, Inc." on Justia Law

Plaintiff-appellant Joanna Grabowski brought claims for medical malpractice against Kaiser Foundation Health Plan, Inc., Southern California Permanente Medical Group, and various associated physicians (collectively, Kaiser). The claims were heard by an arbitrator, pursuant to a contractual arbitration agreement. After a contested hearing, the arbitrator awarded judgment in favor of Kaiser. Grabowski petitioned the trial court to vacate the arbitration award, alleging: (1) the arbitrator committed misconduct, and revealed disqualifying bias, by engaging in an ex parte communication with Kaiser’s counsel about Grabowski’s self-represented status; (2) the arbitrator failed to disclose two matters involving Kaiser where he was selected as an arbitrator; and (3) the arbitrator improperly denied Grabowski’s request for a continuance of the arbitration hearing. The trial court found that “the arbitrator’s conduct did not rise to a level that substantially prejudiced [Grabowski’s] rights” and dismissed her petition. Grabowski appealed. After review, the Court of Appeal agrees the award should have been vacated. The Court concluded the arbitrator committed misconduct on several levels, at least one required vacating the arbitration award. The ex parte communication between the arbitrator and Kaiser’s counsel was recorded by Grabowski’s mother as part of her effort to document the arbitration hearing; the audio recording revealed comments by the arbitrator making light of Grabowski’s self- representation and her inability, in the arbitrator’s view, to effectively represent herself. The arbitrator volunteered these comments to Kaiser’s counsel, ex parte, and “they shared a hearty laugh about Grabowski’s perceived shortcomings as an advocate.” Because the arbitrator was aware of this communication and did not disclose it to Grabowski, the award had to be vacated. View "Grabowski v. Kaiser Foundation Health Plan, Inc." on Justia Law

This appeal concerned the enforceability of an arbitration agreement executed between Ashley River Plantation, an assisted-living facility, and Thayer Arredondo, the attorney-in-fact under two powers of attorney executed by Hubert Whaley, a facility resident. When Whaley was admitted into the facility, Arredondo held two valid powers of attorney, a General Durable Power of Attorney (GDPOA) and a Health Care Power of Attorney (HCPOA). Arredondo met with a facility representative and signed various documents in connection with Whaley's admission. During that meeting, the facility representative did not mention or present an arbitration agreement to Arredondo. Later that day, after Whaley was admitted, Arredondo met with a different facility representative who, according to Arredondo, told her she "needed to sign additional documents related to [her] father's admission to the facility." Included among those documents was the arbitration agreement, which Arredondo signed. The arbitration agreement contained a mutual waiver of the right to a trial by judge or jury, and required arbitration of all claims involving potential damages exceeding $25,000. The agreement barred either party from appealing the arbitrators' decision, prohibited an award of punitive damages, limited discovery, and provided Respondents the unilateral right to amend the agreement. Two years into his stay at the facility, Whaley was admitted to the hospital, where he died six years later. Arredondo, as Personal Representative of Whaley's estate, brought this action alleging claims for wrongful death and survival against Respondents. The complaint alleged that during his residency at the facility, Whaley suffered serious physical injuries and died as a result of Respondents' negligence and recklessness. In an unpublished opinion, the court of appeals held the arbitration agreement was enforceable. The South Carolina Supreme Court held neither power of attorney gave Arredondo the authority to sign the arbitration agreement. Therefore, the court of appeals was reversed. View "Arredondo v. SNH SE Ashley River Tenant, LLC" on Justia Law

In November 2007, Marten performed surgery on Doe’s face and neck. In June 2008, Doe sent Marten a letter stating she was considering suing him and demanded that he preserve her documents, files, and photos. In November, Doe’s attorney served Marten with a written demand for arbitration pursuant to a Physician-Patient Arbitration Agreement. In January 2009 Marten’s counsel responded, identifying an arbitrator, without questioning the origin of the agreement or disputing that Marten had signed it. The applicable one-year statute of limitations ran in March 2009. (Code Civ. Proc.340.5) In May 2009, Merten subpoenaed and obtained the records of Dr. Daniel, whom Doe earlier consulted. Located within Daniel’s records was a signed arbitration agreement. Nearly three years later, Marten’s counsel first confronted Doe with the arbitration agreement and refused to continue with the arbitration.Doe sued for medical malpractice and medical battery. The court overruled dismissal motions, finding triable issues as to whether equitable tolling or equitable estoppel disallowed the statute of limitations defense. The court imposed sanctions after hearing evidence that Marten destroyed electronically stored information. After the close of evidence, the trial court dismissed the medical battery claim. On the malpractice claim, the jury awarded over $6.3 million in damages. The court then found the malpractice claim time-barred. The court of appeal reversed in part. The medical malpractice claim was not time-barred because Merten’s conduct actually and reasonably induced Doe to refrain from filing a timely action. View "Doe v. Marten" on Justia Law