Bickel v. Sunrise Assisted Living

206 Cal. App. 4th 1, 141 Cal. Rptr. 3d 586, 2012 WL 1821398, 2012 Cal. App. LEXIS 599
CourtCalifornia Court of Appeal
DecidedMay 21, 2012
DocketNo. F062443
StatusPublished
Cited by16 cases

This text of 206 Cal. App. 4th 1 (Bickel v. Sunrise Assisted Living) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bickel v. Sunrise Assisted Living, 206 Cal. App. 4th 1, 141 Cal. Rptr. 3d 586, 2012 WL 1821398, 2012 Cal. App. LEXIS 599 (Cal. Ct. App. 2012).

Opinion

Opinion

KANE, J.

Plaintiff Ruth Chappell1 filed a lawsuit alleging that defendant Sunrise Senior Living Management, Inc., also known as Sunrise Assisted Living, violated the Elder Abuse and Dependent Adult Civil Protection Act (Welf. & Inst. Code, § 15600 et seq.; the Elder Abuse Act),2 concerning its [5]*5care of plaintiff while she was a resident at defendant’s assisted living facility (Sunrise). At the time of plaintiff’s admission to Sunrise, she entered into a residency agreement that included an arbitration clause.3 In response to plaintiff’s lawsuit, defendant petitioned the trial court to compel arbitration of plaintiff’s elder abuse claims pursuant to the residency agreement. The trial court granted the petition, but severed one provision of the arbitration clause that specified each party would bear its own attorney fees and costs in the arbitration. The trial court severed that provision on the ground that it was contrary to public policy, since the Elder Abuse Act specifically called for recovery of attorney fees and costs to prevailing plaintiffs (§ 15657) to effectuate the important public purposes of the law. The case proceeded to arbitration, plaintiff prevailed on her claims under the Elder Abuse Act and the arbitrator awarded compensatory and punitive damages. In addition, the arbitrator awarded plaintiff the sum of $666,725.30 in attorney fees and $94,694.70 in costs pursuant to section 15657, part of the Elder Abuse Act. After the arbitration award was confirmed and judgment was entered by the trial court, defendant filed the instant appeal challenging the trial court’s decision to sever the attorney fees and costs waiver. Because we agree that the waiver in the residency agreement of plaintiff’s statutory right to recover attorney fees and costs under section 15657 was contrary to public policy, we will affirm.

FACTS AND PROCEDURAL HISTORY

On May 27, 2008, plaintiff filed her complaint for damages alleging several violations of the Elder Abuse Act. The complaint asserted that during the period from March 3 until July 21, 2006, plaintiff was a resident at the assisted living facility operated by defendant referred to as Sunrise. While a resident at Sunrise, defendant allegedly engaged in conduct constituting elder abuse of plaintiff. Such conduct allegedly included leaving plaintiff unattended and isolated in her room for prolonged amounts of time resulting in dehydration, ignoring plaintiff’s calls for help or assistance, and failing to respond to plaintiff’s basic health and personal hygiene needs. Allegedly, defendant’s conduct was committed with recklessness, oppression, fraud, or malice and thus came within the scope of section 15657. Section 15657 provides in part: “Where it is proven by clear and convincing evidence that a defendant is liable for physical abuse as defined in Section 15610.63, or neglect as defined in Section 15610.57, and that the defendant has been guilty of recklessness, oppression, fraud, or malice in the commission of this abuse, the following shall apply, in addition to all other remedies otherwise provided by law: [f] (a) The court shall award to the plaintiff reasonable attorney’s fees and costs.”

[6]*6On September 2, 2008, defendant filed its petition under Code of Civil Procedure section 1281.2 to compel arbitration of plaintiff’s claims pursuant to the parties’ agreement. Specifically, the residency agreement entered by the parties on or about March 30, 2006, provided in article VI, paragraph X, under the heading “Arbitration,” as follows: “By entering into this Agreement, you agree that any and all claims and disputes arising from or related to this Agreement or to your residency, care or services at this Community shall be resolved by submission to neutral, binding arbitration; except that any claim involving unlawful detainer actions (eviction) or any claims that are brought in small claims court shall not be subject to arbitration unless both parties agree to arbitrate such proceedings. Both parties give up their constitutional rights to have any such dispute decided in a court of law before a jury, and instead accept the use of arbitration. The arbitration shall be conducted in Fresno County, California, by a single neutral arbitrator selected as provided in the California Code of Civil Procedure, unless otherwise mutually agreed. In reaching a decision, the arbitrator shall prepare findings of fact and conclusions of law. Each party shall bear its own costs and fees in connection with the arbitration.,’ (Italics added.)

Plaintiff opposed the petition to compel arbitration on the ground that the above arbitration terms were unconscionable and/or contrary to public policy. Plaintiff argued the entitlement to attorney fees and costs under the Elder Abuse Act was a substantive statutory remedy designed to increase the likelihood that attorneys would take elder abuse cases and ensure that victimized seniors would receive adequate representation. According to plaintiff’s opposition, that policy would be undermined if arbitration could be ordered while at the same time the trial court enforced a provision that each party bear his or her own costs and fees. At oral argument, plaintiff argued further that the provision relinquishing attorney fees recovery was contrary to public policy to the extent that it resulted in a waiver of statutory rights that were intended to be “unwaivable.” Plaintiff pointed out that if the substantive remedies in the Elder Abuse Act were waivable in this manner, “every facility would just include [a provision to] ‘waive attorney fees,’ ” which plaintiff argued would impede the goals of the Elder Abuse Act. In its reply, defendant countered that arbitration is favored under state and federal law, and that the waiver provision was a matter of the freedom of contract that should not be disturbed by the courts. After oral argument, the trial court took the matter under submission.

In September 2008, the trial court issued its written order granting the petition to compel arbitration. The trial court found that plaintiff failed to prove that the arbitration agreement was procedurally or substantively unconscionable. However, as noted, the trial court did find the discrete provision waiving recovery of attorney fees and costs to be in violation of the public [7]*7policy embodied in the Elder Abuse Act, and the court severed that waiver provision. The trial court explained this aspect of its ruling as follows: “[T]he arbitration provision does provide for what is in effect a waiver of plaintiff’s right to recover, under certain circumstances, attorneys’ fees under the Elder Abuse Act. To that extent, it is contrary to public policy and unlawful. [Citation.] This does not require a finding that the arbitration agreement as a whole is unlawful as it is not ‘permeated with unconscionability. ’ (Armendarizi[ v. Foundation Health Psychcare Services, Inc. (2000) 24 Cal.4th 83,] 122 [99 Cal.Rptr.2d 745, 6 P.3d 669].) Rather this provision of the agreement can be, and is, severed and the remainder of the agreement enforced. (Civ. Code § 1670.5[, subd. ](a); Armendariz, at pp.

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Cite This Page — Counsel Stack

Bluebook (online)
206 Cal. App. 4th 1, 141 Cal. Rptr. 3d 586, 2012 WL 1821398, 2012 Cal. App. LEXIS 599, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bickel-v-sunrise-assisted-living-calctapp-2012.