Donnell v. Parkcliffe Alzheimer's Community

2017 Ohio 7982
Ohio Court of Appeals·Decided September 29, 2017·No. WD-17-001·Published·Cited by 11 cases

Opinion

IN THE COURT OF APPEALS OF OHIO SIXTH APPELLATE DISTRICT

WOOD COUNTY

Noel Donnell, as Personal Representative Court of Appeals No. WD-17-001 of the Estate of Helen Donnell, Deceased Trial Court No. 16 CV 219 Appellant

v. Parkcliffe Alzheimer's Community, et al. DECISION AND JUDGMENT Appellees Decided: September 29, 2017

*****

Blake A. Dickson, for appellant.

Rudolph A. Peckinpaugh, Jr. and Mark W. Sandretto, for appellees.

*****

PIETRYKOWSKI, J.

{¶ 1} This is an appeal from the judgment of the Wood County Court of Common Pleas, granting appellees’, Parkcliffe, Inc., Parkcliffe Development LLC, and its unincorporated trade names Parkcliffe Alzheimer’s Community and Parkcliffe

Community Northwood, motion to compel arbitration. For the reasons that follow, we affirm.

I. Facts and Procedural Background

{¶ 2} The undisputed facts for purposes of this appeal are as follows. On April 14, 2016, appellant, Noel Donnell, as the Personal Representative of the Estate of Helen Donnell, Deceased, filed a complaint against appellees, asserting survivorship claims and wrongful death claims. In the complaint, appellant alleged that Mrs. Donnell was a resident of appellees when she suffered injuries, including a hip fracture. Appellant alleged that the injuries were caused by appellees’ negligence. Mrs. Donnell died on November 19, 2015.

{¶ 3} On June 16, 2016, appellees filed an answer denying the allegations, and asserting as an affirmative defense that the claims are subject to mandatory alternative dispute resolution, including binding arbitration if necessary. Appellees attached to the answer a copy of an “Amendment to the Admission Agreement,” which provides, The resident and Parkcliffe agree to attempt to resolve informally through mediation all disputes between them, including those that arise under this Agreement and any other claims of any kind or type whatsoever that Resident makes against Parkcliffe (all such disputes and claims are referred to in this Agreement as “Claims”.) To the fullest extent permitted by applicable law, any Claim that cannot be resolved informally by mediation within sixty days from the date of initiation of the mediation shall be determined by binding arbitration conducted in Lucas County, Ohio by the American Arbitration Association or by any method of private arbitration upon which the Resident and Parkcliffe agree; provided, however, that any such private arbitration shall proceed in accordance with the procedural rules of the American Arbitration Association then in effect (the “Rules”).

{¶ 4} Thereafter, the parties engaged in some discovery. Appellees served their first set of interrogatories, request for production of documents, and requests for admissions. Appellees also responded to appellant’s first and second sets of interrogatories, requests for admissions, and request for production of documents.

{¶ 5} On July 19, 2016, the trial court held a scheduling pretrial. The court established deadlines for discovery, and scheduled a settlement pretrial for January 31, 2017, and a trial for March 28, 2017.

{¶ 6} On August 10, 2016, appellees moved to compel arbitration on the Estate of Helen Donnell’s survivorship claims, and to stay the proceedings, including appellant’s wrongful death claim, pending the conclusion of arbitration. Attached to the motion was a “Durable General and Health Care Power of Attorney,” in which Mrs. Donnell named appellant as her lawful agent. Notably, the power of attorney was executed in 1992, and the health care powers expired after seven years. Also attached to the motion was the

“Admission Agreement” and “Amendment to the Admission Agreement.” The “Admission Agreement” was signed by appellant under the “Resident’s Sponsor” line, but the “Amendment to the Admission Agreement” contained appellant’s signature under the “Resident” line. On October 25, 2016, appellant filed his brief in opposition to the motion to compel arbitration. A reply brief and a sur-reply brief were also filed.

{¶ 7} On December 6, 2016, the trial court granted appellees’ motion to compel arbitration, and stayed all of the actions in the case pending the results of arbitration.

II. Assignments of Error

{¶ 8} Appellant has timely appealed the trial court’s December 6, 2016 judgment entry, and asserts six assignments of error for our review:

I. None of the appellees are parties to the arbitration clause.

II. The arbitration clause is not enforceable against Helen Donnell because it was never signed by Helen Donnell nor by anyone with authority to sign on her behalf.

III. Appellees waived their right to arbitration.

IV. The trial court erred in finding that Ohio Revised Code § 2711.22 through § 2711.24 were not applicable. The arbitration clause in this case is void under Ohio law.

V. The arbitration clause in this case is both procedurally and substantively unconscionable and therefore unenforceable.

VI. The trial court erred in staying the wrongful death claims pending the resolution of arbitration.

III. Analysis

{¶ 9} This appeal concerns whether the arbitration clause is enforceable.

“Arbitration agreements are ‘valid, irrevocable, and enforceable, except upon grounds that exist at law or in equity for the revocation of any contract.’” Taylor Bldg. Corp. of Am. v. Benfield, 117 Ohio St.3d 352, 2008-Ohio-938, 884 N.E.2d 12, ¶ 32. “[I]n reviewing whether an arbitration clause is enforceable, we apply a de novo standard of review.” Norman v. Schumacher Homes of Circleville, Inc., 2013-Ohio-2687, 994 N.E.2d 865, ¶ 11 (4th Dist.).

A. Parties to the Arbitration Clause

{¶ 10} In his first and second assignments of error, appellant argues that the arbitration clause is unenforceable because it was not signed by the parties.

{¶ 11} Specifically, in his first assignment of error, appellant argues that the arbitration clause was signed on behalf of “Parkcliffe Community,” which is not a legal entity or registered trade name.

{¶ 12} R.C. 1329.01(A)(2) provides that “a name used in business or trade that is fictitious and that the user has not registered or is not entitled to register as a trade name” is a “fictitious name.” “Corporations in Ohio have the right to adopt fictitious names ‘so long as it is not done with fraudulent purpose or against public policy.’” Green Tree

Servicing LLC v. Luce, 11th Dist. Ashtabula No. 2015-A-0022, 2016-Ohio-1011, ¶ 21, quoting McCaskey v. Sanford-Brown College, 8th Dist. Cuyahoga No. 97261, 2012- Ohio-1543, ¶ 15; see also Plain Dealer Publishing Co. v. Worrell, 178 Ohio App.3d 485, 2008-Ohio-4846, 898 N.E.2d 1009, ¶ 16 (9th Dist.), quoting Baldwin’s Ohio Practice Business Organizations, Section 17:9 (“A corporation may use a name other than its corporate name in the conduct of its business.”). “[A]n action may be commenced or maintained against the user of a fictitious name whether or not the name has been reported.” Plain Dealer Publishing at ¶ 16. Here, appellant does not identify, and we cannot find, anything in the record that would support a conclusion that the fictitious name was adopted with fraudulent purpose or against public policy. Therefore, we hold that appellees’ use of a fictitious name does not render the arbitration provision unenforceable as between the parties to the litigation.

{¶ 13} Accordingly, appellant’s first assignment of error is not well-taken.

{¶ 14} In his second assignment of error, appellant argues that the arbitration provision is unenforceable because it was not signed by Mrs. Donnell or anyone authorized to sign on her behalf. In particular, appellant argues that the power of attorney that was granted to him by Mrs. Donnell had expired. Section B of the power of attorney provides that appellant is authorized to make health care decisions on behalf of Mrs. Donnell. Subsection 3 of Section B states,

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Donnell v. Parkcliffe Alzheimer's Community, 2017 Ohio 7982 (Ohio Ct. App. 2017).

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