GGNSC Arkadelphia, LLC v. Lamb

2015 Ark. 253, 465 S.W.3d 826, 2015 Ark. LEXIS 432
CourtSupreme Court of Arkansas
DecidedJune 4, 2015
DocketCV-14-1033
StatusPublished
Cited by14 cases

This text of 2015 Ark. 253 (GGNSC Arkadelphia, LLC v. Lamb) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GGNSC Arkadelphia, LLC v. Lamb, 2015 Ark. 253, 465 S.W.3d 826, 2015 Ark. LEXIS 432 (Ark. 2015).

Opinions

COURTNEY HUDSON GOODSON, Associate Justice

IsAppellants GGNSC Arkadelphia, LLC d/b/a/ Golden Living Center-Arkadelphia, and others, bring this interlocutory appeal from the order entered by the Ouachita County Circuit Court certifying a class action filed by appellees Nellie R. Lamb, by and through Richard Williams, as guardian of the estate and person of Nellie R. Lamb, and others. For reversal, appellants contend that appellees did not meet their burden of proving the predominance of common issues for the certification of the class. They also argue that class adjudication is neither efficient nor fair and that the class definition is flawed. We affirm the circuit court’s decision.

I. Factual Background

The appellants in this case are twelve nursing-home facilities doing business as Golden |fiLiving Centers in cities throughout the State of Arkansas.1 Appellants also include alleged related entities and various officers, directors, administrators, and persons allegedly serving in leadership positions. Appellees, who are former residents of the nursing homes or special administrators, guardians, or attorneys-in-fact of former residents, brought this class-action suit against appellants in the Circuit Court of Ouachita County. In a second amended complaint, appellees individually, and on behalf of all residents of the Golden Living Centers from December 2006 to July 1, 2009, alleged -that appellants breached their statutory and contractual obligations by failing to properly staff the facilities and by failing to meet minimum staffing requirements. Specifically, appellees asserted that the alleged practice of chronically understaffing the nursing homes breached the facilities’ standard admission agreement and violated the Arkansas Long-Term Care Residents’ Rights Act (Residents’ Rights Act). Based on the alleged violation of the Residents’ Rights Act, they also presented a claim under the Arkansas Deceptive Trade Practices Act (ADTPA). Appellees sought punitive damages and compensation for an array of injuries arising from the loss of dignity, the deprivation of residents’ rights, poor hygiene, filthy living conditions, foul odors, the delivery of cold food, as well as damages for other injuries including pressure sores, malnutrition, dehydration, infection, bone fractures, falls, concussions, lacerations, and medical errors.

Following the initial complaint and also after filing the second amended complaint, 17appellees moved for class certification of the three claims. Appellants opposed the motions, and the parties briefed the contested issues. After conducting two hearings, the circuit court entered an order granting class certification on July 11, 2014. The court defined the class as,

All residents and estates of residents who resided at the Golden Living nursing homes in Arkansas from December 2006, through July 1, 2009. Excluded from the Class are (1) residents that have sued in the past or presently have lawsuits pending against any of the Defendants except the plaintiffs named herein; (2) all present and former employees, officers, directors, of Defendants; (3) any Class Member who timely elects to be excluded from the class; and (4) any employee of the Circuit Court of Ouachita County, Arkansas, or any officer of any court presiding over this action.

In its order, the court noted that the class exceeded 3,400 residents. Further, the circuit court found that commonality was established because the central issue affecting both the named plaintiffs and the putative class is whether appellants’ alleged business practice of chronically un-derstaffing the nursing homes breached the standard admission agreement and violated the Residents’ Rights Act, as well as the ADTPA. In particular, the circuit court found that the issues common to all class members included,

A. Whether Defendants’ standard admission agreement imposes minimum-staffing requirements;
B. Whether Ark.Code Ann. § 20-10-1201, et seq. imposes minimum staffing requirements;
C. Whether Defendants failed to meet the minimum staffing requirements of Ark.Code Ann. § 20-10-1201, et seq., and the Defendants’ standard admission agreement;
D. Whether failure to meet the minimum staffing requirements breaches the standard admission agreement;
E. Whether failure to meet minimum staffing requirements violates Ark.Code Ann. § 20-10-1201 et seq.;
|SF. Whether failure to meet minimum staffing requirements of Ark.Code Ann. § 20-10-1201 et seq., is a violation of the Arkansas Deceptive Trade Practices Act; and
G. Whether Leslie Campbell, Cindy Susienka, James Avery, Andrea Clark, David Mills, Julianne Williams, David Stordy, Larry McFadden, Angela Mar-lar, Billie Palculict, Sybil Adams, Troy Morris, Avie Singleton, Tracey Burlison, Mincie Thomas, Tommy Johnston, John McPherson, Laurie Herron, Margaret Green, Noreen Bailey, Marsha Parker, and Lisa Hensley are control persons as defined in Ark.Code Ann. § 4-88-113(d)(1) and therefore jointly and severally liable for the damages suffered by the plaintiff class.

Based on this court’s precedent in Beverly Enterprises-Arkansas, Inc. v. Thomas, 870 Ark. 310, 259 S.W.3d 445 (2007), the circuit court found that the issues common to the class predominated over any individual issues and that the element of superiority was satisfied. The court also determined that appellees established the requirements of typicality and adequacy. Finally, the circuit court concluded that the class definition was sufficient. Appellants bring this interlocutory appeal from the circuit court’s order, as permitted by Arkansas Rule of Appellate Procedure-Civil 2(a)(9).

II. Standards of Review

At the outset, we note that class certification of a lawsuit is governed by Rule 23 of the Arkansas Rules of Civil Procedure. Circuit courts are given broad discretion in matters regarding class certification, and we will not reverse a circuit court’s decision to grant or deny class certification absent an abuse of discretion. ChartOne, Inc. v. Raglon, 373 Ark. 275, 283 S.W.3d 576 (2008). When reviewing a circuit court’s class-certification order, this court reviews the evidence contained in the record to determine whether it supports the circuit court’s decision. Teris, LLC v. Golliher, 371 Ark. 369, 266 S.W.3d 730 (2007). Our focus |9is “whether the requirements of Rule 23 are met,” and “it is totally immaterial whether the petition will succeed on the merits or even if it states a cause of action.” Philip Morris Cos. v. Miner, 2015 Ark. 73, at 3, 462 S.W.3d 313 (quoting Am. Abstract & Title Co. v. Rice, 358 Ark. 1, 9, 186 S.W.3d 705, 710 (2004)). Stated another way, “we will not delve into the merits of the underlying claims when deciding whether the Rule 23 requirements have been met.” Id. (quoting Nat’l Cash Inc. v. Loveless, 361 Ark.

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2015 Ark. 253, 465 S.W.3d 826, 2015 Ark. LEXIS 432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ggnsc-arkadelphia-llc-v-lamb-ark-2015.