CL SNF, LLC v. FOUNTAIN

863 S.E.2d 116, 312 Ga. 416
CourtSupreme Court of Georgia
DecidedSeptember 21, 2021
DocketS20G1292
StatusPublished
Cited by7 cases

This text of 863 S.E.2d 116 (CL SNF, LLC v. FOUNTAIN) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CL SNF, LLC v. FOUNTAIN, 863 S.E.2d 116, 312 Ga. 416 (Ga. 2021).

Opinion

312 Ga. 416 FINAL COPY

S20G1292. CL SNF, LLC et al. v. FOUNTAIN.

MCMILLIAN, Justice.

Minnie Fountain, as guardian for her adult nephew, Leroy

Wiggins,1 filed claims against Wiggins’s skilled nursing facility and

its management — CL SNF, LLC d/b/a Clinch Healthcare Center

(“CHC”); RWC Healthcare, LLC; PWW Healthcare, LLC; and

Beacon Health Management, LLC (collectively, “Clinch”) — after

Wiggins allegedly was assaulted while in their care. Clinch moved

to compel arbitration of the claims, which the trial court denied. The

Court of Appeals affirmed the trial court’s ruling based on a

determination that neither the letters of guardianship issued by the

probate court nor the provisions of the Georgia Code pertaining to

guardians of adult wards, see OCGA § 29-4-1 et seq. (the

“Guardianship Code”), gave Fountain the authority to enter into a

1 Wiggins is now deceased. pre-dispute arbitration agreement on Wiggins’s behalf. We granted

Clinch’s petition for certiorari and now reverse the decision by the

Court of Appeals in CL SNF, LLC v. Fountain, 355 Ga. App. 176,

183 (1) (843 SE2d 605) (2020), because we conclude that the

Guardianship Code grants a guardian authority to enter into a

binding pre-dispute arbitration agreement where the exercise of

such power is reasonably necessary to provide adequately for the

ward’s support, care, health, and welfare.

The record demonstrates that the Probate Court of Clinch

County issued “Letters of Guardianship of Adult Ward” naming

Fountain as Wiggins’s legal guardian on November 15, 2006,

charging her with responsibility for Wiggins’s care, subject to

applicable law and further orders of the court. In March 2014,

Wiggins was admitted as a resident at CHC, a skilled nursing

facility, and in connection with his admission, Fountain signed a

“Facility Admission Agreement” containing an arbitration clause. At

2 the same time,2 Fountain also signed a separate, three-page binding

“Arbitration Agreement,” which directed that all claims associated

with care provided by Clinch be submitted to arbitration3 and

expressly stated that Wiggins had the right to seek legal counsel

concerning the agreement; that the signing of the agreement was

not a precondition to Wiggins’s admission to, or his receipt of

2 Although the Facilities Admission Agreement and the Arbitration Agreement show different dates, Fountain submitted an affidavit averring that she signed the agreements at the same time and that the date on the Arbitration Agreement is incorrect. 3 In pertinent part, the Arbitration Agreement provided:

Any and all claims or controversies arising out of or in any way relating to this Agreement or the Resident’s Admission Agreement, including the interpretation of either, or the Resident’s stay at, or the care or services provided by, the Facility, or any acts or omissions in connection with such care or services, . . . whether arising out of State or Federal law, whether existing or arising in the future, whether for statutory, compensatory or punitive damages, and whether sounding in breach of contract, tort, or breach of statutory or regulatory duties (including, without limitation, any claim based on an alleged violation of the state bill of rights for residents of long-term care facilities or federal resident’s rights, any claim based on negligence, any claim for damages resulting from death or injury to any person arising out of care or service rendered by the Facility or by any officer, agent, or employee thereof acting within the scope of his or her employment, any claim based on any other departure from accepted standards of health care or safety, or any claim for unpaid nursing home charges), irrespective of the basis for the duty or of the legal theories upon which the claim is asserted, shall be submitted for arbitration. 3 services from, CHC; and that the agreement “may be revoked by

written notice to the Facility from the Resident within thirty (30)

days of signature.”

In March 2019, Fountain filed a lawsuit asserting various

claims against Clinch arising out of alleged acts of sexual battery

committed against Wiggins by another CHC resident. Clinch

responded with an answer denying liability and a motion to compel

arbitration and stay proceedings pursuant to the Federal

Arbitration Act, 9 USC §§ 1–16. Fountain opposed the motion, and

the trial court denied it, finding that although Fountain had the

authority to execute the arbitration agreements on Wiggins’s behalf,

the arbitration provision in the Facility Admission Agreement was

unenforceable because it violated federal law by giving Clinch, as a

precondition to Wiggins’s admission to CHC, additional

consideration over and above the Medicaid payments Clinch

received for Wiggins’s care. See 42 USC § 1396r (c) (5) (A) (iii).4 The

4 Under that provision,

4 trial court further concluded that the separate Arbitration

Agreement was not enforceable because it was (1) commercially

unreasonable, failing to advance the purpose of the Admission

Agreement, which was to provide nursing home services for

payment, and (2) unconscionable, based on the court’s finding that

the parties did not have an equal obligation to arbitrate under its

terms.

After the trial court certified its order for immediate review,

the Court of Appeals granted Clinch’s application for interlocutory

appeal. Although the Court of Appeals affirmed the denial of

Clinch’s motion to compel arbitration, it based its decision on a

determination that neither the letters of guardianship nor the

Guardianship Code granted Fountain the authority to bind Wiggins

[w]ith respect to admissions practices, a nursing facility must — . . . in the case of an individual who is entitled to medical assistance for nursing facility services, not charge, solicit, accept, or receive, in addition to any amount otherwise required to be paid under the State plan under this [subchapter], any gift, money, donation, or other consideration as a precondition of admitting (or expediting the admission of) the individual to the facility or as a requirement for the individual’s continued stay in the facility. 42 USC § 1396r (c) (5) (A) (iii).

5 to the pre-dispute Arbitration Agreement. See Fountain, 355 Ga.

App. at 183 (1).5 We granted certiorari, asking the parties to address

whether the Court of Appeals correctly concluded that a legal

guardian of an adult ward appointed by a probate court and acting

under letters of guardianship did not have the authority to enter

into a pre-dispute arbitration agreement on behalf of the ward.

We start that analysis by examining the letters of

guardianship issued by the probate court. See OCGA § 29-4-13

(setting out requirements for order granting guardianship). In that

order, the probate court found that Wiggins was in need of a

guardian, appointed Fountain as the guardian, and provided, among

other things, that it was the guardian’s duty “to see that the ward is

adequately fed, clothed, sheltered and cared for, and that the ward

5 The Court of Appeals noted that Clinch “[did] not enumerate as error the trial court’s determination that the arbitration clause in the Facility Admission Agreement was unenforceable,” Fountain, 355 Ga. App.

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863 S.E.2d 116, 312 Ga. 416, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cl-snf-llc-v-fountain-ga-2021.