Gnoth v. Victorian Square, LLC

CourtDistrict Court, E.D. Tennessee
DecidedMarch 17, 2023
Docket3:22-cv-00004
StatusUnknown

This text of Gnoth v. Victorian Square, LLC (Gnoth v. Victorian Square, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gnoth v. Victorian Square, LLC, (E.D. Tenn. 2023).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF TENNESSEE AT KNOXVILLE

SON YE GNOTH, by and through her ) Attorney-in-fact, James Gnoth, ) ) Plaintiff, ) ) v. ) No. 3:22-CV-4-DCP ) VICTORIAN SQUARE, LLC d/b/a ) VICTORIAN SQUARE ASSISTED LIVING, ) et al., ) ) Defendants. )

MEMORANDUM OPINION This case is before the undersigned pursuant to 28 U.S.C. § 636(c), Rule 73 of the Federal Rules of Civil Procedure, and the consent of the parties, for all further proceedings, including entry of judgment [Doc. 21]. Now before the Court is Defendants’ Motion to Dismiss and/or Compel Arbitration and Stay the Proceedings [Doc. 15]. Plaintiff responded in opposition to the motion [Doc. 18], and Defendant filed a reply [Doc. 19]. On November 21, 2022, the parties appeared before the Court via telephone for a status conference on the motion and the related filings and to determine whether the motion should be converted into a motion for summary judgment.1 During the telephonic status conference, the parties presented no objections to the Court converting Defendants’ motion

1 By way of background, on November 2, 2022, the Court entered an Order [Doc. 24], noting that Defendants’ motion did not specify the provision that it was invoking pursuant to the Federal Arbitration Act (“FAA”) [Doc. 24 at 1]. In addition, the Court further noted that in response to Defendants’ motion, Plaintiff filed a declaration [Doc. 18-4] that is not part of the pleadings [Doc. 24 p. 2]. Thus, the Court set a status conference to determine whether it was appropriate to convert Defendants’ motion to dismiss to a motion for summary judgment. See Fed. R. Civ. P. 12(d); see also Boykin v. Family Dollar Stores of Mich., LLC, 3 F.4th 832, 836–39 (6th Cir. 2021) (analyzing the provisions of the FAA and the proper vehicle to challenge arbitration agreements). to dismiss filed pursuant to Rule 12(b)(6) into a motion for summary judgment under Rule 56. Given this conversion, the Court permitted additional filings, which the parties submitted [Docs. 27, 28, and 29]. The motion is therefore ripe for adjudication. For the reasons more fully explained below, the Court GRANTS Defendants’ motion [Doc. 15] and will ORDER the parties to

arbitration. I. BACKGROUND On April 10, 2017, Plaintiff was admitted to Victorian Square Assisted Living (“Victorian Square”) [Doc. 18-4 ¶ 1]. Prior to residing at Victorian Square, Plaintiff’s representative, Rebekah Gnoth,2 signed several documents [Doc. 18-1]. Rebekah Gnoth “recall[s] the facility representative giving [her] a stack of papers conveying that they all needed to be signed in order for [Plaintiff] to be admitted to the facility” [Doc. 18-4 ¶ 2]. She contends that “[d]uring the admission process, there was not a lot of time to thoughtfully consider each and every document or consult an attorney, especially because [Plaintiff] needed to be admitted right away” [Id. ¶ 3]. Included in the paperwork was an Agreement to Arbitrate Disputes (“Arbitration Agreement”)

[Doc. 16-1]. The Arbitration Agreement states, “Signing this agreement is not a perquisite to the furnishing of services at Victorian Square.” [Id. at 1]. It also includes the following paragraph: It is understood that any legal claim or civil action arising out of or relating to care or services provided to you at Victorian Square (e.g., claims for refund, breach of contract, intentional tort, wrongful death, elder abuse, unfair business practices) or relating to the validity or enforceability of the Residence and Care Agreement for Victorian Square, will be determined by submission to arbitration as provided in the Tennessee law. This includes claims or actions regarding whether the care or services you received, or lack of care or services, was unnecessary or unauthorized or was improperly, negligently, or incompetently rendered. Both parties to this contract, by entering into it, are giving up their constitutional right

2 Defendants refer to Rebekah Gnoth as “Rebekah K. Ambrose” [Doc. 16]. Plaintiff filed the Declaration of Rebekah Gnoth [Doc. 18-4]. Thus, the Court will refer to her as “Rebekah Gnoth.” to have any such dispute decided in a court of law before a jury, and instead are accepting the use of arbitration.

[Id.]. Rebekah Gnoth does “not specifically recall signing an arbitration agreement or anyone explaining the meaning or effect of the arbitration agreement at the time [she] apparently signed it” [Doc. 18-4 ¶ 4]. She states that she did “not fully understand the Arbitration Agreement’s meaning or effect until an attorney with The Higgins Firm explained it to [her] after the filing of this case” [Id. ¶ 5]. On January 4, 2022, Plaintiff filed a Complaint against Defendants alleging negligence pursuant to the Tennessee Medical Malpractice Act and gross negligence, willful, wanton, reckless, malicious, and/or intentional misconduct [Doc. 1]. Defendants have now moved for arbitration given the agreement above, and Plaintiff has opposed that motion. II. STANDARD OF REVIEW In their original brief, Defendants claim that the Federal Arbitration Act (“FAA”) “governs this arbitration agreement.” [Doc. 16 p. 8]. Plaintiff does not appear to dispute this position [Doc. 18 p. 2] (explaining that the FAA “places arbitration agreements on an equal footing with other contracts” (quoting Rent-A-Ctr., W., Inc., v. Jackson, 561, U.S. 63, 67 (2010) (citation omitted)))]. See also [Doc. 1 ¶ 7] (demanding a jury trial pursuant to 9 U.S.C. § 4)].3 In its supplemental brief,

3 The Court notes that in Defendants’ original brief, they argue that the Tennessee Uniform Arbitration Act (“TUAA”) does not apply and that the “FAA is the only law that applies” [Doc. 16 p. 9]. In support of this assertion, Defendants point to other courts that “have held contracts involving nursing facilities . . . [are] covered under the FAA” [Doc. 16 p. 7 (citation omitted)]. But the cases Defendants rely on are distinguishable from the facts of this case. See Canyon Sudar Partners, LLC v. Cole ex rel. Haynie, No. CIV.A. 3:10-1001, 2011 WL 1233320, at *10 (S.D.W. Va. Mar. 29, 2011) (finding that the plaintiffs established that they met the interstate commerce requirement in the FAA because they submitted evidence showing that they engaged in interstate commerce); Rainbow Health Care Ctr., Inc. v. Crutcher, No. 07-CV-194-JHP, 2008 WL 268321, at *5 (N.D. Okla. Jan. 29, 2008) (finding that the plaintiffs established that they met the interstate commerce requirement in the FAA because they submitted a statement of material facts outlining the economic activity and the defendant did not respond to their statement); Toledo v. Kaiser Permanente Med. Grp., 987 F. Supp. 1174, 1180 (N.D. Cal. 1997) (explaining that the Defendant relies on § 4 of the FAA to compel arbitration [Doc. 27 p. 2]. In response, Plaintiff argues that § 4 of the FAA is not applicable, arguing that it is reserved for plaintiffs who seek arbitration. Plaintiff argues that § 3 of the FAA is the appropriate remedy for a defendant seeking to enforce a valid arbitration agreement, but “she desires neither a stay nor dismissal and opposes

arbitration altogether” [Doc. 28 p. 2].

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