The ESTATE OF JOSEFA U. DeCAMACHO v. LA SOLANA CARE AND REHAB, INC.

316 P.3d 607, 234 Ariz. 18, 678 Ariz. Adv. Rep. 15, 2014 WL 130934, 2014 Ariz. App. LEXIS 4
Court of Appeals of Arizona·Decided January 14, 2014·No. 2 CA-CV 2013-0086·Published·Cited by 37 cases

Opinion

OPINION

VÁSQUEZ, Presiding Judge.

¶ 1 Estela Guthrie, as personal representative of the Estate of Josefa DeCamacho and on behalf of DeCamaeho’s statutory beneficiaries, appeals from the trial court’s order compelling arbitration of her claims against La Solana Care and Rehab, Inc. and Infinia at Douglas, Inc. (“La Solana”). On appeal, Guthrie argues the signed contract containing an arbitration clause, upon which the court’s order was based, is neither valid nor enforceable. She also contends the contract’s arbitration clause does not apply to the statutory beneficiaries’ claims brought under Arizona’s Wrongful Death Act or to the estate’s claims brought under the Adult Protective Services Act (“APSA”). For the reasons set forth below, we reverse the court’s order compelling arbitration of the wrongful death claims but otherwise affirm.

Factual and Procedural Background 1

¶ 2 In 2007, Josefa DeCamacho was suffering from multiple cognitive and physical ail *20 mente, including “dementia, confusion, short-term memory impairment, varying memory function, unsteady gait and balance problems.” In early 2007, after DeCamacho recovered from a serious fall, her daughter, Estela Guthrie, decided to admit her into La Solana’s skilled-nursing and short-term rehabilitative facility.

¶3 When Guthrie and DeCamacho first arrived at the La Solana facility, employees presented Guthrie with a “Resident Admission Agreement,” which contained an arbitration clause. Although information for several of the blank spaces in the agreement had not been filled in, Guthrie signed on DeCamacho’s behalf, and DeCamacho was admitted to the facility for housing and care.

¶ 4 La Solana continuously provided care for DeCamacho at the facility from 2007 until July 23, 2010, when she was injured after falling from her wheelchair outside the facility’s front door. DeCamacho died six days later in a hospital. She was survived by her children, Ramiro Camacho, Candelario Camacho, and Guthrie, who was appointed as personal representative of DeCamacho’s estate.

¶ 5 On May 18, 2012, Guthrie filed a lawsuit against La Solana, asserting an APSA claim on behalf of the estate, as well as wrongful death claims on behalf of DeCamacho’s children. La Solana moved to dismiss the lawsuit and to compel arbitration pursuant to the admission agreement. Guthrie responded that the agreement was not a valid or enforceable contract and that the arbitration clause did not apply in any event to the APSA and wrongful death claims. 2 On January 22, 2013, the trial court summarily ruled in favor of La Solana, staying the proceedings until the parties completed arbitration.

¶ 6 Guthrie requested special action review, but this court declined jurisdiction because Guthrie had not followed “the procedure outlined by our supreme court in Southern California Edison Co. v. Peabody Western Coal Co., 194 Ariz. 47, ¶¶ 16-20, 977 P.2d 769, 774-75 (1999).” Estate of Josefa U. DeCamacho v. La Solana Care & Rehab, No. 2 CA-SA 2013-0024 (order filed Apr. 11, 2013). At Guthrie’s request, the trial court entered the necessary language to make its ruling appealable pursuant to Rule 54(b), Ariz. R. Civ. P. This appeal followed. We have jurisdiction pursuant to AR.S. § 12-2101(A)(1). See S. Cal. Edison Co., 194 Ariz. 47, ¶ 19, 977 P.2d at 775.

Discussion

¶ 7 Guthrie argues the trial court erred in compelling arbitration because: (1) “[a]s a matter of basic contract law, the admission agreement and its arbitration clause are invalid and unenforceable,” and (2) “[t]he arbitration clause applies to no claims in this case and does not bind the Estate of Josefa DeCamacho, its personal representative, or any statutory beneficiary.”

¶ 8 “The trial court’s review on a motion to compel arbitration is limited to the determination as to whether an arbitration agreement exists.” Nat’l Bank of Ariz. v. Schwartz, 230 Ariz. 310, ¶ 4, 283 P.3d 41, 42 (App.2012). “We must defer, absent clear error, to the factual findings upon which the trial court’s conclusions are based.” Harrington v. Pulte Home Corp., 211 Ariz. 241, ¶ 16, 119 P.3d 1044, 1049-50 (App.2005). To the extent the issues “require[ ] us to consider and interpret legal principles and statutes, ... our review is de novo.” Smith v. Pinnamaneni, 227 Ariz. 170, ¶ 7, 254 P.3d 409, 412 (App.2011).

I. Validity of the Contract

¶9 Guthrie argues “[t]he admission agreement and its arbitration clause are, under basic contract law, invalid and unenforceable because they do not contain a valid contract’s elements.” The validity and enforceability of a contract and arbitration clause are mixed questions of fact and law, subject to de novo review. See Nickerson v. *21 Green Valley Recreation, Inc., 228 Ariz. 309, ¶ 19, 265 P.3d 1108, 1117 (App.2011) (contract); Schoneberger v. Oelze, 208 Ariz. 591, ¶ 12, 96 P.3d 1078, 1081 (App.2004) (arbitration clause).

¶ 10 Section 12-1501, AR.S., provides that “a provision in a written contract to submit to arbitration any controversy thereafter arising between the parties is valid, enforceable and irrevocable, save upon such grounds as exist at law or in equity for the revocation of any contract.” See also Schoneberger, 208 Ariz. 591, ¶ 17, 96 P.3d at 1082 (“Arbitration is a creature of contract law.”); Broemmer v. Abortion Servs, of Phx., Ltd., 173 Ariz. 148, 150, 840 P.2d 1013, 1015 (1992) (enforceability of agreement to arbitrate determined by contract law principles). Accordingly, “the fundamental prerequisite to arbitration is the existence of an actual agreement or contract to arbitrate.” Schoneberger, 208 Ariz. 591, ¶ 17, 96 P.3d at 1082.

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The ESTATE OF JOSEFA U. DeCAMACHO v. LA SOLANA CARE AND REHAB, INC., 316 P.3d 607, 234 Ariz. 18, 678 Ariz. Adv. Rep. 15, 2014 WL 130934, 2014 Ariz. App. LEXIS 4 (Ark. Ct. App. 2014).

316 P.3d 607 (The ESTATE OF JOSEFA U. DeCAMACHO v. LA SOLANA CARE AND REHAB, INC.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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