Dean v. Heritage Healthcare of Ridgeway, LLC

759 S.E.2d 727, 408 S.C. 371, 2014 S.C. LEXIS 192
CourtSupreme Court of South Carolina
DecidedJune 18, 2014
DocketAppellate Case 2013-000509; 27401
StatusPublished
Cited by36 cases

This text of 759 S.E.2d 727 (Dean v. Heritage Healthcare of Ridgeway, LLC) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dean v. Heritage Healthcare of Ridgeway, LLC, 759 S.E.2d 727, 408 S.C. 371, 2014 S.C. LEXIS 192 (S.C. 2014).

Opinion

Chief Justice TOAL.

Heritage Healthcare of Ridgeway, LLC, UniHealth Post-Acute Care-Tanglewood, LLC (Tanglewood), and UHS-Pruitt Corporation (collectively, Appellants) ask this Court to reverse the circuit court’s denial of their motion to compel arbitration in this wrongful death and survival action involving Appellants’ allegedly negligent nursing home care. We reverse and remand.

Facts/Procedural Background

Tanglewood is a skilled nursing facility located in Ridgeway, South Carolina, and is owned and controlled by Appellants. In January 2007, Tanglewood and Darlene Dean (Respondent) entered into a nursing home residency agreement in which Tanglewood assumed responsibility for the care of Respondent’s mother, Louise Porter (the patient). The same day, Respondent signed a separate, voluntary arbitration agreement (the Agreement). 1

The Agreement states that:

any and all controversies, claims, disputes, disagreements or demands of any kind ... arising out of or relating to the [patient’s residency agreement] with the Facility ... or any service or care provided to the [patient] by the Facility shall be settled exclusively by binding arbitration. This means that the parties are waiving their right to a trial before a jury or a judge.

Further, the Agreement provides that:

Any arbitration proceeding that takes place under this [] Agreement shall follow the rules of the American Arbitration Association (‘AAA’) and any resulting decision shall be enforceable by a court of competent jurisdiction. The arbitration proceeding shall be conducted where the Facility is *377 located or as close to the Facility as practical. The arbitration proceeding shall be conducted before one neutral arbitrator selected in accordance with the rules of the AAA. The parties agree to bear their own attorneys’ fees and costs associated with the arbitration proceeding.

Id. (emphasis added). Finally, the Agreement contains a severability clause and states, in bold font directly above the signature lines, that the patient “is not required to sign this [ ] Agreement in order to be admitted to or to remain in the Facility.” (Emphasis in original).

In 2009, the patient fell three separate times within a ten day period, fracturing her hip in the third fall. Over the next two months, the patient underwent two hip surgeries; however, due to complications following the surgeries, the patient died on September 30, 2009.

On December 20, 2011, Respondent — acting in her capacity as personal representative of her mother’s estate — filed a Notice of Intent (NOI) to file a medical malpractice suit against Appellants, as well as an expert affidavit in support of her NOI. See S.C.Code Ann. § 15-79-125 (Supp.2012). Respondent also alleged claims for survival and wrongful death.

Appellants requested discovery of all of the patient’s medical records, which Respondent provided. The parties then engaged in the statutorily required pre-suit mediation; however, following an impasse, Respondent filed her complaint on March 23, 2012. In lieu of filing an answer to the complaint, Appellants filed a motion to dismiss pursuant to Rules 12(b)(1) and (6), SCRCP, or, in the alternative, a motion to compel arbitration and stay the litigation.

Respondent opposed the motion, arguing, inter alia, that the Agreement was unenforceable because the “forum selection” clause had failed. More specifically, Respondent claimed the portion of the Agreement stating that “[a]ny arbitration proceeding that takes place under this [] Agreement shall follow the rules of the [AAA]” meant that the parties had agreed to an arbitration proceeding administered exclusively by the AAA. However, since January 1, 2003, the AAA has *378 refused to accept personal injury disputes without a post-injury agreement to arbitrate. 2 Thus, because Respondent viewed the “exclusive” arbitral forum as unavailable, she contended it would be improper to compel arbitration.

Relying on Grant v. Magnolia Manor-Greenwood, Inc., 383 S.C. 125, 678 S.E.2d 435 (2009), the circuit court agreed, invaliding the Agreement in its entirety and refusing to compel arbitration between the parties. 3 Specifically, the court found that “the forum selection is an integral part of the [Agreement and cannot be remedied” because “the forum selected by [Appellants] will not hear this type of dispute.” Because the court held the Agreement completely invalid, it declined to address any of Respondent’s remaining arguments as to why the court should compel arbitration between the parties. 4

Appellants filed a motion to reconsider, which the circuit court denied. Appellants appealed, and this Court certified the appeal pursuant to Rule 204(b), SCACR.

*379 Standard of Review

Arbitrability determinations are subject to de novo review. Bradley v. Brentwood Homes, Inc., 398 S.C. 447, 453, 730 S.E.2d 312, 315 (2012). However, a circuit court’s factual findings will not be reversed on appeal if any evidence reasonably supports the findings. Id. at 453, 730 S.E.2d at 315. “[T]he party resisting arbitration bears the burden of proving that the claims at issue are unsuitable for arbitration.” Green Tree Fin. Corp.-Ala. v. Randolph, 531 U.S. 79, 91, 121 S.Ct. 513, 148 L.Ed.2d 373 (2000); accord Blue Cross Blue Shield of Ala. v. Rigas, 923 So.2d 1077, 1083 (Ala.2005).

Analysis

I. Interstate Commerce and the Federal Arbitration Act

As a threshold matter, we address whether federal or state arbitration law applies to the instant controversy. Respondent claims that the Federal Arbitration Act (FAA) does not apply to the Agreement because the residency agreement does not involve interstate commerce. (Citing Timms v. Greene, 310 S.C. 469, 427 S.E.2d 642 (1993), overruled in part by Cape Romain Contractors, Inc. v. Wando E., L.L.C., 405 S.C. 115, 123 n. 5, 747 S.E.2d 461, 465 n. 5 (2013)). We disagree.

“[T]he basic purpose of the [FAA] is to overcome courts’ refusals to enforce agreements to arbitrate,” Allied Bruce Terminix Cos. v. Dobson, 513 U.S. 265, 270, 115 S.Ct. 834, 130 L.Ed.2d 753 (1995), and “ensure that arbitration will proceed in the event a state law would have a preclusive effect on an otherwise valid arbitration agreement.” Bradley, 398 S.C. at 453, 730 S.E.2d at 315.

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Bluebook (online)
759 S.E.2d 727, 408 S.C. 371, 2014 S.C. LEXIS 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dean-v-heritage-healthcare-of-ridgeway-llc-sc-2014.