Stiner v. Brookdale Senior Living, Inc.

383 F. Supp. 3d 949
District Court, N.D. California·Decided June 5, 2019·No. Case No. 17-cv-03962-HSG·Published·Cited by 10 cases

Opinion

HAYWOOD S. GILLIAM, JR., United States District Judge

Defendants Brookdale Senior Living, Inc. and Brookdale Senior Living Communities, Inc. (collectively, "Brookdale") filed a motion to stay proceedings pending its appeal of the Court's order denying Defendants' motion to compel arbitration. Dkt. No. 94. Brookdale also filed a motion requesting the Court to certify for interlocutory appeal the question of whether Brookdale facilities are public accommodations under Title III of the Americans with Disabilities Act ("ADA"). Dkt. No. 99. The Court finds that this matter is appropriate for disposition without oral argument and the matter is deemed submitted. See Civil L.R. 7-1(b). For the reasons discussed below, the Court DENIES the motion to stay *952proceedings and motion to certify for interlocutory appeal.

I. BACKGROUND

Plaintiffs filed their second amended complaint against Brookdale for violations of the ADA, the Unruh Civil Rights Act ("Unruh Act"), the Consumer Legal Remedies Act, California Business and Professions Code §§ 7200 et seq. , and California Welfare and Institutions Code § 15610, based on the conditions of Brookdale's assisted living facilities.1 Dkt. No. 52 ("SAC"). In November 2018, Brookdale filed three motions: (1) motion to compel Plaintiffs Helen Carlson and Lawrence Quinlan to arbitrate, Dkt. No. 59; (2) motion to dismiss Plaintiffs' SAC, Dkt. No. 60; and (3) motion to strike the class allegations of Plaintiffs' SAC, Dkt. No. 61. The Court denied Brookdale's motion to compel arbitration and motion to strike, and granted in part and denied in part Brookdale's motion to dismiss. Dkt. No. 85 ("January 25 Order"). Brookdale appealed the Court's order denying the motion to compel arbitration, Dkt. No. 93, and filed the present motion to stay proceedings related to Plaintiffs Carlson and Quinlan pending appeal, Dkt. No. 94. Brookdale also filed a motion to certify for interlocutory appeal the Court's finding that Brookdale facilities are public accommodations under the ADA. Dkt. No. 99.

II. MOTION TO STAY

A. Court's Order Denying Motion to Compel Arbitration

Brookdale moved to compel Plaintiff Helen Carlson to arbitrate based on a 2011 Agreement, which Plaintiffs argued was later superseded by a December 2017 Agreement. Dkt. No. 59. In 2011, Ms. Carlson entered into a standardized residency agreement and arbitration addendum before moving into a Brookdale facility. SAC ¶ 115. Ms. Carlson entered into a new residency agreement in December 2017, under which she opted out of the arbitration provision. Dkt. No. 38-1, Ex. D at 9-12. The Court found that the December 2017 Agreement controlled and the arbitration opt-out applied to all claims arising from her stay at the Brookdale facility. January 25 Order at 6-7. Further, based on the plain language of the arbitration provision, the Court held that the opt-out retroactively applied to the claims asserted in this lawsuit, notwithstanding that the lawsuit was filed before the December 2017 Agreement. Id. ("The 2017 arbitration provision applies to 'claims ... whether existing or arising in the future.' ") (quoting Dkt. No. 38-1, Ex. D at 10). Therefore, by the plain language of the December 2017 Agreement, Ms. Carlson was not compelled to arbitrate her claims.

As to Plaintiff Lawrence Quinlan, the Court found that there was no agency relationship between him and his son, Phillip Quinlan, at the time Phillip Quinlan signed a 2015 residency agreement containing an arbitration opt-out clause. January 25 Order at 7-9. Mr. Quinlan did not grant his son power of attorney until January 2016. Dkt. No. 31-4, Ex. A. Brookdale offered no evidence that Mr. Quinlan, either by his conduct or inaction, caused Brookdale to believe that Phillip Quinlan was acting as his agent when Phillip Quinlan executed the residency agreement. January 25 Order at 8. The Court also rejected Brookdale's equitable estoppel argument, as none of Plaintiffs' claims relies on the residency agreements as valid and enforceable contracts. Id. at 9.

*953Based on these findings, the Court denied Brookdale's motion to compel Plaintiffs Carlson and Quinlan to arbitrate. Id. at 2-9.

B. Legal Standard

The Ninth Circuit has held that a district court's order denying a motion to compel arbitration does not automatically result in a mandatory stay of proceedings pending appeal of that order. Britton v. Co-op Banking Group , 916 F.2d 1405, 1412 (9th Cir. 1990). Instead, the district court has discretion to decide whether to stay proceedings pending appeal. Id. The party requesting the stay bears the burden of showing that the circumstances justify exercise of that discretion. Nken v. Holder , 556 U.S. 418, 433-34, 129 S.Ct. 1749, 173 L.Ed.2d 550 (2009). To determine whether the moving party has met its burden, the Supreme Court articulated the following four-factor test: "(1) whether the [movant] has made a strong showing that [the movant] is likely to succeed on the merits; (2) whether the [movant] will be irreparably injured absent a stay; (3) whether issuance of the stay will substantially injure the other parties interested in the proceeding; and (4) where the public interest lies." Id. at 418, 129 S.Ct. 1749. Courts in the Ninth Circuit weigh these factors with a "general balancing" or "sliding scale" approach, under which "a stronger showing of one element may offset a weaker showing of another." Leiva-Perez v. Holder , 640 F.3d 962, 964 (9th Cir. 2011). As to the first factor, if a movant is unable to show a "strong likelihood of success," then the movant must at least demonstrate that the appeal presents a "substantial case on the merits," or that there are "serious legal questions" raised.2 Id.

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Stiner v. Brookdale Senior Living, Inc., 383 F. Supp. 3d 949 (N.D. Cal. 2019).

383 F. Supp. 3d 949 (Stiner v. Brookdale Senior Living, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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