Northport Health Services of Arkansas, LLC, D/B/A Covington Court Health and Rehabilitation Center; Nhs Management, LLC; Northport Health Services, Inc.; Northport Holdings, LLC; Northport Holding Operations, LLC; Nhs Operations, LLC; And Ronald S. Yarbrough in His Capacity as Administrator of Covington Court Health and Rehabilitation v. Angie P. Ellis, as Attorney-In-Fact of Karleen Vernon

2021 Ark. App. 311

• Court: Court of Appeals of Arkansas
• Decided: September 1, 2021
• Status: Published

Opinion

Cite as 2021 Ark. App. 311 Elizabeth Perry ARKANSAS COURT OF APPEALS I attest to the accuracy and integrity of this document DIVISION I 2023.07.06 12:54:15 -05'00' No. CV-20-484 2023.003.20215 NORTHPORT HEALTH SERVICES Opinion Delivered September 1, 2021 OF ARKANSAS, LLC, D/B/A COVINGTON COURT HEALTH APPEAL FROM THE SEBASTIAN AND REHABILITATION CENTER; COUNTY CIRCUIT COURT, FORT NHS MANAGEMENT, LLC; SMITH DISTRICT NORTHPORT HEALTH SERVICES, [NO. 66FCV-19-1103] INC.; NORTHPORT HOLDINGS, LLC; NORTHPORT HOLDING OPERATIONS, LLC; NHS HONORABLE JAMES O. COX, OPERATIONS, LLC; AND RONALD JUDGE S. YARBROUGH IN HIS CAPACITY AS ADMINISTRATOR OF COVINGTON COURT HEALTH AND REHABILITATION APPELLANTS

V.

ANGIE P. ELLIS, AS ATTORNEY-IN- FACT OF KARLEEN VERNON APPELLEE DISMISSED

N. MARK KLAPPENBACH, Judge

Appellants (collectively “Northport”) appeal the April 9, 2020 order of the circuit

court that resolved the motion filed by appellee (Ellis) titled “Motion to Determine the

Validity of an Arbitration Agreement.” The circuit court found the agreement invalid due

to lack of mutuality. Because Northport is appealing from an order that is not appealable,

we dismiss.

Karleen Vernon, Ellis’s sister, lived in Northport’s nursing home and allegedly

suffered personal injuries due to inadequate care and treatment. In December 2019, Ellis filed a lawsuit against Northport on her sister’s behalf, alleging counts of negligence, medical

malpractice, breach of the admissions agreement, and deceptive trade practices. In January

2020, Northport answered the complaint, denying Ellis’s allegations.

On February 10, 2020, Ellis filed the “Motion to Determine the Validity of an

Arbitration Agreement.” In the motion, Ellis stated that Northport’s discovery responses

indicated that it “intend[s] to try to enforce an arbitration agreement” executed as part of

Vernon’s admission to the facility. Ellis asserted that this agreement was unenforceable

because it lacked mutuality; the agreement exempted any claim for less than $25,000 from

the requirement to arbitrate, which exempted only the types of claims that it would assert

against a resident. Ellis cited Robinson Nursing & Rehabilitation Center, LLC v. Phillips, 2019

Ark. 305, 586 S.W.3d 624, among other Arkansas appellate cases to support her argument

that this agreement was invalid. On February 24, 2020, Northport filed a response stating

that it had “a right to seek enforcement of the agreement to arbitrate in either state or federal

court” and had “chose[n] to file a Complaint to Compel Arbitration of Plaintiff’s claims in

the United States District Court for the Western District of Arkansas, pursuant to federal

jurisdiction[.]” 1 Northport’s response acknowledged the Phillips opinion but asserted that

Phillips was in violation of the Federal Arbitration Act and an unduly-restrictive

interpretation of the mutuality requirement.

1 Northport attached as an exhibit its “Complaint to Compel Arbitration,” filed in federal court on February 20, 2020, in which Northport asked the federal court to compel arbitration and stay the state-court proceedings. Northport subsequently filed a Motion for Summary Judgment requesting the federal court to compel Ellis’s claims into arbitration. Northport’s federal complaint was later dismissed.

2 On March 3, 2020, Ellis filed a reply to Northport, arguing that Northport was aware

that it would not prevail under state law, that Northport was improperly forum shopping,

and that the agreement itself established Sebastian County, Arkansas, as “the sole and

exclusive venue” for any dispute. On March 9, 2020, Northport filed a sur-reply asserting

that it was not improperly forum shopping and stating:

[Ellis] should not be permitted to rob Defendants [Northport] of their choice of forum. Importantly, Defendants have not moved to compel arbitration in this action. Defendants have asserted their right to compel arbitration so as not to waive it, but they chose to assert that right in federal court, which is the typical practice of these Defendants. Plaintiff’s Motion to Determine the Validity of an Arbitration Agreement was clearly an improper preemptive strike.

(Emphasis in original.) Northport requested that the circuit court stay its proceedings until

the federal court resolved the matter.

On April 2, 2020, at the conclusion of the circuit-court hearing, Northport’s attorney

told the circuit court that “if you are inclined to rule on this today, I think that procedurally,

we have to bring a Motion to Compel Arbitration and have you either rule on that up or

down so that we can maintain our rights to appeal[.]” The circuit court entered an order

on April 9, 2020, finding that the arbitration agreement was governed by Phillips, that the

agreement lacked mutuality, and that the agreement was not valid.

On April 10, 2020, Northport filed a “Motion for Reconsideration and to Compel

Arbitration,” citing Jorja Trading, Inc. v. Willis, 2020 Ark. 133, 598 S.W.3d 1, which,

according to Northport, retracted our supreme court’s overly restrictive approach to

“mutuality” in arbitration agreements. Ellis argued that Jorja was distinguishable and urged

the circuit court to deny Northport’s “Motion for Reconsideration and to Compel

Arbitration.” Northport filed a response on April 29, 2020, reasserting that Jorja mandated

3 that the circuit court vacate its prior order and that it compel Ellis to arbitrate her claims. 2

Significantly, Northport’s “Motion for Reconsideration and to Compel Arbitration” was

never ruled on by the circuit court, nor was any appeal taken in relation to this motion.

On May 8, 2020, Northport filed its notice of appeal appealing the “April 9, 2020”

order “determining that no valid agreement to arbitrate exists between the parties.”

We must first determine whether we have appellate jurisdiction. Northport asserted

that we have appellate jurisdiction over the April 9, 2020 order because an order denying a

motion to compel arbitration is immediately appealable according to Arkansas Rule of

Appellate Procedure–Civil 2(a)(12). However, Northport made very clear in its filings and

assertions to the circuit court preceding April 9, 2020, that it was not moving the circuit

court to compel arbitration but had instead “chose[n] to assert that right in federal court.”

The order recited in Northport’s notice of appeal is the order issued on Ellis’s motion to

determine the validity of the agreement. We lack appellate jurisdiction over Northport’s

appeal of the April 9, 2020 order, which requires that we dismiss the appeal.

Dismissed.

HIXSON and BROWN, JJ., agree.

Hardin, Jesson & Terry, PLC, by: Jeffrey W. Hatfield, Kynda Almefty, Carol Ricketts,

Kirkman T. Dougherty, and Stephanie I. Randall, for appellants.

Reddick Moss, PLLC, by: Matthew D. Swindle and Heather G. Zachary, for appellee.

2 We held in Country Club Gardens, LLC v. Alexander, 2020 Ark. App. 239, 599 S.W.3d 363, that Phillips was not overruled by Jorja.