Loflin v. Creative Care CA2/7

CourtCalifornia Court of Appeal
DecidedSeptember 3, 2024
DocketB325585
StatusUnpublished

This text of Loflin v. Creative Care CA2/7 (Loflin v. Creative Care CA2/7) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Loflin v. Creative Care CA2/7, (Cal. Ct. App. 2024).

Opinion

Filed 9/3/24 Loflin v. Creative Care CA2/7 NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION SEVEN

MARQUITA HAIRE LOFLIN et B325585 al., (Los Angeles County Plaintiffs and Respondents, Super. Ct. No. 22STCV21220)

v.

CREATIVE CARE, INC. et al.,

Defendants and Appellants.

APPEALS from an order of the Superior Court of Los Angeles County, Virginia C. Keeny, Judge. Affirmed. Citron & Citron, Thomas. H. Citron and Katherine A. Tatikian for Defendants and Appellants Creative Care, Inc., Dr. Morteza Khaleghi and Dr. Karen Khaleghi. Lewis Brisbois Bisgaard & Smith LLP, Lann G. McIntyre, Tracy D. Forbath, Raymond K. Wilson and Kathleen M. Walker for Defendant and Appellant Farrah Khaleghi. Brown, Neri, Smith & Khan LLP, Amjad M. Khan and Jacquelynn K. M. Levien for Plaintiffs and Respondents. __________________________ Creative Care, Inc., Morteza Khaleghi, Karen Khaleghi, and Farrah Khaleghi (collectively, Creative Care defendants) appeal from an order denying their motions to compel arbitration of the causes of action asserted by Marquita Haire Loflin and McKenzie Loflin (collectively, Loflin heirs) for wrongful death, fraudulent misrepresentation, and intentional infliction of emotional distress, and the survival and elder abuse causes of action asserted by the estate of Johnathon Loflin.1 The Creative Care defendants contend all the causes of action are subject to arbitration, including those brought by the nonsignatory Loflin heirs, and the trial court erred in denying their motions. Farrah Khaleghi (Khaleghi) also argues the court abused its discretion in denying arbitration of the estate’s claims pursuant to Code of Civil Procedure section 1281.2, subdivision (c),2 which provides an exception to mandatory arbitration where a party to an arbitration agreement and parties not bound by the agreement assert claims in an action arising out of the same transaction. We affirm.

1 Creative Care, Inc., Morteza Khaleghi, and Karen Khaleghi filed one motion to compel arbitration; Farrah Khaleghi filed a separate motion. We refer to the motions collectively as the motions to compel arbitration and indicate where an argument is asserted only by Farrah Khaleghi. 2 Further undesignated statutory references are to the Code of Civil Procedure.

2 FACTUAL AND PROCEDURAL BACKGROUND

A. Treatment at the Rehabilitation Facility and the Arbitration Agreement On October 18, 2019 Johnathon Loflin (Johnny)3 was admitted into the Creative Care rehabilitation facility for treatment of his mental health issues and substance abuse disorder in a residential inpatient program. On the day of his admission Johnny signed Creative Care’s Admissions Agreement (admissions agreement). On December 20 Johnny signed a second admission agreement. Both agreements contained the following arbitration provision: “BINDING ARBITRATION: The Client, any Guarantor of the Client’s payment and the facility agree that Binding Arbitration is the sole and the exclusive remedy against Creative Care and its staff. Any such Binding Arbitration must be conducted in Los Angeles County and the prevailing party, in addition to any other awards received, shall be entitled to reasonable attorney’s fees and costs.” On December 18, 2019, while Johnny was still at the facility, Creative Care lost accreditation for its substance abuse treatment services. Late at night on February 12, 2020, Creative Care informed Johnny’s family that the facility was going to transfer Johnny immediately to another facility, even though his therapist advised against the transfer. Creative Care told Johnny’s family the transfer would cost $5,000. Johnny’s sister McKenzie objected to the transfer, but Creative Care’s senior admissions coordinator told her that Johnny would be transferred

3 We refer to the Loflin parties by their first names to avoid confusion. Our factual recitation is based on the allegations in the complaint.

3 or he would be “out on the street” that night. After speaking with one of Creative Care’s doctors and its founder, McKenzie agreed to transfer Johnny to the other facility. Less than two months after being transferred, Johnny was found unresponsive in a bathroom after ingesting fentanyl, and he died soon after.

B. The Complaint On June 29, 2022, the Loflin heirs and Johnny’s estate filed an action against the Creative Care defendants. The Loflin heirs alleged causes of action for wrongful death (§ 377.60 et seq.), fraudulent misrepresentation, and intentional infliction of emotional distress; Johnny’s estate alleged causes of action for survival (§ 377.30 et. seq.) and violations of the Elder Abuse and Dependent Adult Civil Protection Act (Welf. & Inst. Code, § 15600 et seq.).4 All claims were based on a common set of “facts giving rise to all claims.” (Capitalization, boldface, and underlining omitted.) The wrongful death and survival causes of action alleged, using almost identical language, that the Creative Care defendants owed a duty of care to Johnny, and they breached that duty by failing to provide medical care for his physical and mental needs, ultimately causing his death. The elder abuse cause of action alleged the Creative Care defendants “neglected Johnny by failing to use the degree of care that a reasonable person in the same situation [as his caretaker] would have used

4 The amended complaint separately alleged a cause of action for “professional liability—negligence” against Cliffside Malibu, Inc. Cliffside Malibu was later dismissed from the action pursuant to a good faith settlement.

4 in providing for Johnny’s basic needs.” The fraudulent misrepresentation cause of action alleged that Creative Care made intentionally false representations to Johnny’s family regarding his psychiatric care. The intentional infliction of emotional distress cause of action alleged the Creative Care defendants’ misrepresentations regarding psychiatric care and threats to throw Johnny “‘out on the street’” were “outrageous, i.e., so extreme as to exceed all bounds of that usually tolerated in a civilized community,” causing the Loflin heirs to suffer emotional distress.

C. The Creative Care Defendants’ Motion To Compel Arbitration In August 2022 the Creative Care defendants filed their motions to compel arbitration (styled as petitions to compel arbitration). The Creative Care defendants argued the arbitration provision in the admissions agreement bound the Loflin heirs, even though only Johnny signed the agreement, because the agreement reflected the parties’ intent that all claims arising from the care and services rendered to Johnny during his stay at Creative Care be arbitrated. Further, the Loflin heirs were required to arbitrate their claims pursuant to section 1295, which sets forth requirements for arbitration provisions in contracts for medical services. They also highlighted California’s strong public policy favoring arbitration. In their oppositions, the Loflin plaintiffs argued the heirs were not bound by the arbitration provision because it did not purport to bind the heirs, successors, or family members. Further, section 1295 did not apply because the arbitration agreement did not comply with the statutory requirements. In

5 addition, given the possibility of conflicting rulings if the estate’s claims were arbitrated and the Loflin heirs’ claims litigated in court, the court should exercise its discretion under section 1281.2, subdivision (c), to deny arbitration of the estate’s claims.

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Bluebook (online)
Loflin v. Creative Care CA2/7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/loflin-v-creative-care-ca27-calctapp-2024.