Advocat, Inc. v. Heide

378 S.W.3d 779, 2010 Ark. App. 825, 2010 Ark. App. LEXIS 859
CourtCourt of Appeals of Arkansas
DecidedDecember 8, 2010
DocketNo. CA 10-371
StatusPublished
Cited by7 cases

This text of 378 S.W.3d 779 (Advocat, Inc. v. Heide) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advocat, Inc. v. Heide, 378 S.W.3d 779, 2010 Ark. App. 825, 2010 Ark. App. LEXIS 859 (Ark. Ct. App. 2010).

Opinion

WAYMOND M. BROWN, Judge.

| jThis is a nursing-home negligence case, filed by Dana Couch Heide on behalf of Marc Stephen Williams, an incapacitated person. But the issue here is whether the circuit court should have granted a motion to compel arbitration. The court denied the motion filed by Advocat, Inc.; Diversi-care Management Services Co.; and Diversicare Leasing Corp. d/b/a Arbor Oaks Health & Rehabilitation Center (collectively referred to as “Advocat”) after finding that Advocat waived its right to compel arbitration by failing to attach the arbitration agreement to its initial answer. Advo-cat has filed this interlocutory appeal, seeking enforcement of the arbitration agreement. It argues (1) that it timely raised its right to arbitration, (2) that Arkansas Rule of Civil ^Procedure 10(d) did not operate to waive its right to arbitration, (3) that any defect in its previous pleadings was cured by its amended answer, and (4) that Heide was not prejudiced by its amended answer. We hold that Advocat validly raised the defense of arbitration when it filed a motion to compel — and attached a copy of the arbitration agreement to the motion — three months after the filing of the lawsuit. Therefore, we reverse and remand for proceedings consistent with this opinion.

Background

In April 2009, Heide filed a nursing-home-negligence complaint against Advo-cat. Advocat filed an answer denying liability. In addition, Advocat presented a number of affirmative defenses, including that “the plaintiff’s claims are subject to arbitration.” While there was an arbitration agreement, the agreement was not attached to the initial answer.

In July 2009, Advocat filed a motion to compel arbitration. Attached to the motion was the arbitration agreement, purportedly signed by Heide on behalf of Williams. The agreement encompassed a number of claims, including “common law or statutory negligence, gross negligence, malpractice, or any other claim based on any departure from accepted standards of medical or nursing care.” The agreement also provided that it would be governed by the Federal Arbitration Act (which allows the arbitration of tort claims),1 not the Arkansas Arbitration Act | -¡(which does not).2 Also attached to the motion were two letters, dated June 1 and 8, 2009, where Advocat asserted its right to arbitration. In response, Heide argued that Advocat waived its right to arbitrate by answering her complaint, engaging in discovery, consenting to the jurisdiction of the court, and filing a motion to dismiss.

In September 2009, Advocat filed an amended answer. This time, it attached the arbitration agreement. Heide immediately filed a motion to strike the amended answer, claiming that Advocat previously waived its right to arbitration and that allowing the amended answer would be prejudicial to her. Advocat argued that the amended answer was proper under the rules of civil procedure and should have been allowed.

By two letter opinions, the circuit court granted Heide’s motion to strike the amended answer and denied Advoeat’s motion to compel arbitration. The circuit court wrote that amendments to pleadings were appropriate unless prejudice would result therefrom. But it found that Heide would be prejudiced here because, by allowing the amended answer, she would be denied her constitutional right to a jury trial. It also noted that parties often insist on strict compliance with the rules of civil procedure and that defenses may be waived when they are not properly and timely asserted. As for the motion to compel arbitration, the circuit court ruled that Advocat failed to properly raise arbitration as a defense when it did not attach the arbitration agreement, which was necessary under Arkansas Rule of Civil Procedure 10(d). It also noted that |4Advocat admitted jurisdiction and venue, requested dismissal of the complaint, and conducted discovery on the merits. These findings form the basis of an order entered in December 2009, and this appeal followed.

Analysis

The question here is whether the circuit court should have stricken Advocat’s amended answer and denied its motion to compel arbitration. Advocat asks us to enforce the arbitration agreement. It argues that it timely raised its arbitration defense and that the circuit court should not have applied Rule 10(d) to find that it waived its arbitration defense. It also contends that any deficiencies in its initial answer were cured in its amended answer and that Heide did not suffer any prejudice when it amended its answer. In response, Heide argues that Rule 10(d) required Advocat to attach a copy of the arbitration agreement to its answer to effectively plead arbitration as an affirmative defense and that the failure to do so constituted a waiver of the defense. She further asserts that the amended answer prejudiced her because Advocat’s waiver of its arbitration defense freed her to present her case to a jury. Finally, Heide contends that, if we reverse the circuit court’s decision, she is entitled to discovery on the issue of whether the arbitration agreement is enforceable.

Our rules of appellate procedure allow for interlocutory appeals from orders denying a motion to compel arbitration.3 We review the denial of a motion to compel arbitration de novo |Bon the record.4 This appeal requires us to interpret our rules of civil procedure. We construe court rules using the same canons of construction as we use for statutes.5 The first rule in considering the meaning and effect of a statute is to construe it just as it reads, giving the words their ordinary and usually accepted meaning in common language.6 When the language of a statute is plain and unambiguous, there is no need to resort to rules of statutory construction, and the analysis need go no further.7 We review issues of statutory construction de novo, as it is for us to decide what a statute means8 We are not bound by the circuit court’s decision, but in the absence of a showing that the circuit court erred in its interpretation of the law, the circuit court’s decision will be accepted as correct on appeal.9

We begin by determining whether Advocat waived its right to present its arbitration defense when it failed to attach the arbitration agreement in the initial pleading. Advocat clearly pleaded that it was entitled to arbitration, but it did not attach the arbitration agreement to its answer. The following analysis by Newbern and Watkins is persuasive:

A party to an arbitration agreement may seek to enforce it in an independent action to compel arbitration. Such an action is necessary when, for instance, ' the other Rparty questions whether a dispute is arbitrable or refuses to participate in the arbitration process. More typically, the arbitration issue is raised defensively in a pending action, with the defendant moving to stay the proceedings and compel arbitration.
The right to arbitrate is not waived when a motion is made separately from the pre-answer motions that must be consolidated pursuant to Ark. R. Civ. P. 12(g) and (h)(1). The consolidation requirement applies only to those motions listed in Rule 12, and a motion to compel arbitration is not among them.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Robinson Nursing & Rehabilittion Center, LLC v. Briley
2022 Ark. App. 85 (Court of Appeals of Arkansas, 2022)
Diamante v. Dye
2013 Ark. App. 630 (Court of Appeals of Arkansas, 2013)
D & D Parks Construction Co. v. Martin
414 S.W.3d 402 (Court of Appeals of Arkansas, 2012)
Phillippy v. ANB Financial Services, LLC
386 S.W.3d 553 (Court of Appeals of Arkansas, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
378 S.W.3d 779, 2010 Ark. App. 825, 2010 Ark. App. LEXIS 859, Counsel Stack Legal Research, https://law.counselstack.com/opinion/advocat-inc-v-heide-arkctapp-2010.