Louisiana Extended Care Centers, LLC v. Carolyn Bindon

180 So. 3d 791, 2015 Miss. App. LEXIS 628, 2015 WL 7729633
CourtCourt of Appeals of Mississippi
DecidedDecember 1, 2015
Docket2014-CA-01282-COA
StatusPublished
Cited by2 cases

This text of 180 So. 3d 791 (Louisiana Extended Care Centers, LLC v. Carolyn Bindon) is published on Counsel Stack Legal Research, covering Court of Appeals of Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisiana Extended Care Centers, LLC v. Carolyn Bindon, 180 So. 3d 791, 2015 Miss. App. LEXIS 628, 2015 WL 7729633 (Mich. Ct. App. 2015).

Opinion

IRVING, P.J.,

for the Court:

¶ 1. This appeal arises from the judgment of the Circuit Court-of Adams County denying a motion to compel arbitration filed by the Defendants/Appellants, Louisiana Extended Care Centers LLC d/b/a Adams County Nursing Center; Adams County Community Care' Center LLC; Magnolia Management Corporation d/b/a/ Magnolia Ancillary Services Inc.; CommC-are Mississippi; and John Does 1-20 (collectively, “nursing home” unless individual identification is necessitated). The nursing home raises the following issues: (1) whether a provision of an'admission agree-' ment is so one-sided and Oppressive that it renders an incorporated arbitration clause unconscionable, invalid, and unenforceable; (2) whether the arbitration clause is invalid and unenforceable due to the lack of an arbitration forum; and (3) whether the arbitration clause is invalid and unenforceable because it fails' to outline an alterna-tivo arbitrator-selection procedure.

*794 ¶ 2. Finding the arbitration clause valid and enforceable, we reverse and remand for further proceedings consistent with this opinion.

FACTS

¶3. In February 2008, Frank Bindon was admitted to the 'Adams County Nursing Center (facility), and upon his admission, he and his wife, Carolyn, executed an admission agreement that contained an arbitration clause. On or around September 9, 2012, Frank died as a result of sepsis. Carolyn, as administrator of Frank's estate, filed a complaint against the nursing home, alleging negligence, gross negligence, and wrongful death. In response, the nursing home filed a motion to compel arbitration, and-after a hearing, the circuit judge denied the motion. This appeal resulted.

DISCUSSION

¶4. The standard of review for granting or denying a motion to compel arbitration is de novo, Harrison Cnty. Commercial Lot, LLC v. H. Gordon Myrick, Inc., 107 So.3d 943, 949 (¶ 12) (Miss.2013) (citation omitted). An appellate court “does not review the merits of the underlying claim.” Id. at (¶ 13) (citation omitted).

I. Unconscionability of section A(5)

¶ 5. At the hearing on the nursing home’s motion to compel arbitration, Carolyn argued that the admission agreement was a contract of adhesion and that it was substantively unconscionable because, among other reasons,, section A(5) of the admission agreement unilaterally allowed the nursing home to pursue litigation in collection cases.- In denying the motion, the circuit judge stated:

[In Caplin Enterprises, Inc. v. Arrington, 145 So.3d 608 (Miss.2014), the Mississippi Supreme Court] said that [a] preprinted contract was offered on a take[-]it[~]or[-]leave[-]it basis. That’s kind of what we’ve got here. You’ve got a whole agreement, [and] you’ve got arbitration in it, but if [a prospective patient] want[s] to get into the [the facility, he or she would have] to sign it all, which I think is unconscionable. I read the agreement, too, that said that you would be entitled to legal representation or you should consult an attorney. I doubt seriously that issue- was offered even though it’s not here[ — ]that that provision was offered.

¶ 6. On appeal, the nursing home argues that the arbitration clause is valid and enforceable because (1) there is no legal prohibition against arbitration clauses in preadmission agreements between nursing-home facilities and their patients; and (2) section A(5) does not unilaterally permit the nursing home to seek judicial relief in collection cases. According to the nursing home, section A(5) merely gives it the right to collect attorney’s fees and court costs in the event that a patient refuses to pay a delinquent debt, and the nursing home is forced to seek a judgment compelling arbitration of a collection dispute. The nursing home insists that, unlike "the arbitration clause in Caplin, the clause at issue in this case clearly states that-the parties must submit all disputes, including claims for payment, nonpayment, or refunds, to binding arbitration; The nursing home also insists that unlike Caplin, this case does not involve a one-sided contractual limitation of liability. According to the nursing home, because this is not a collection case, whether section A(5) is unconscionable is an issue not yet ripe for review. The nursing home contends that despite any ambiguity caused by section A(5), the arbitration clause “is [nonetheless] replete with language that the nurs *795 ing [home] is bound to resolve all collection disputes in binding arbitration.”

¶ 7. In the alternative,.the nursing home argues that this .Court is required to find that the specific language of the arbitration clause that forces the parties to arbitrate any dispute arising under the admission agreement controls over the general language found in section A(5). The nursing home further argues that mutuality of obligation is not a requirement of .an enforceable agreement and that even if section A(5) is unconscionable, that does , not invalidate the arbitration clause.

¶ 8. In response, citing Caplin and Covenant Health & Rehabilitation of Picayune, LP v. Estate of Moulds, 14 So.3d 695 (Miss.2009), Carolyn reiterates her argument that section A(5) is unconscionable and invalidates the arbitration clause. She also argues' that the ambiguity of other provisions of the admission agreement renders the clause unenforceable.

¶ 9. “The Mississippi Supreme Court has held that arbitration provisions within a nursing home admission agreement fall within the scope of the Federal Arbitration Act [(FAA)].” Cmty. Care Ctr. of Vicksburg, LLC v. Mason, 966 So.2d 220, 225 (¶ 10) (Miss.Ct.App.2007) (citation omitted). Under the FAA, in determining whether an arbitration clause is enforceable,

[c]ourt[s] employ! ] a two-part test: (1) whether the parties intended to arbitrate the dispute, and (2) whether legal constraints external to the parties’ agreement foreclosed the arbitration of those claims. The first prong has two considerations: (1) whether there is a valid arbitration agreement, and (2) whether the parties’ disputes fall within the scope of , that agreement.

H. Gordon Myrick, 107 So.3d at 949 (¶ 13) (internal citations and quotation marks omitted). Here, neither party argues lack of intent to arbitrate disputes arising under the admission agreement or that Carolyn’s claims, fall outside. the scope of the arbitration clause. .So we only discuss, under the second prong of the analysis, whether the alleged unconscionability of section A(5) constitutes a legal restraint external to the admission agreement that forecloses thfe arbitration of Carolyn’s claims.

¶ 10. “Unconscionability has been defined as an absence of meaningful choice on the part of one of ’the parties, together with contract terms which are unreasonably favorable to the other party[.]” Nw. Fin. Miss., Inc. v. McDonald, 905 So.2d 1187, 1193 (¶ 13) (Miss.2005) (citation omitted). There are two forms of unconsciona-bility: procedural and substantive.

¶ 11.

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Bluebook (online)
180 So. 3d 791, 2015 Miss. App. LEXIS 628, 2015 WL 7729633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-extended-care-centers-llc-v-carolyn-bindon-missctapp-2015.