Magnolia Healthcare, Inc. v. Barnes
| Docket Number: | 2006-CA-00427-SCT Linked Case(s): 2006-CA-00427-SCT ; 2006-CA-00427-SCT |
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| Supreme Court: | Opinion Link Opinion Date: 08-07-2008 Opinion Author: RANDOLPH, J. Holding: On Motion for Rehearing, the Court Affirmed the trial court's opinion. The Motion for Rehearing filed on behalf of Barbara Jean Barnes, by and through her relative and next friend, Shirley Grigsby, as Conservator of her estate, is granted. The previous opinions are withdrawn and these opinions substituted therefor. Affirmed. |
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| Additional Case Information: |
Topic: Contract - Arbitration - American Health Lawyers Association Alternative Dispute Resolution Service Rule of Procedure 1.01 Judge(s) Concurring: Smith, C.J., and Carlson, J. Judge(s) Concurring Separately: DICKINSON, J., CONCURS WITH SEPARATE WRITTEN OPINION JOINED BY WALLER, P.J., AND LAMAR, J. Dissenting Author : EASLEY, J., without separate written opinion. Concur in Part, Concur in Result 1: WALLER, P.J. Concurs in Result Only: Diaz, P.J., and Lamar, J..; Graves, J., Concurs in Result Only with Separate Written Opinion Joined by Diaz, P.J. Procedural History: Motion to Compel Arbitration; Motion for Rehearing Nature of the Case: CIVIL - CONTRACT; Motion for Rehearing |
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| Trial Court: |
Date of Trial Judgment: 02-07-2006 Appealed from: Washington County Circuit Court Judge: Richard Smith Disposition: The Washington County Circuit Court denied Magnolia's Motion to Compel Arbitration. Case Number: CI205-252 |
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| Note: | This opinion replaces a former opinion by the SCT on 1/10/2008. | |
| Party Name: | Attorney Name: | |||
| Appellant: | Magnolia Healthcare, Inc. d/b/a Arnold Avenue Nursing Home; Foundation Health Services, Inc. and Diane Oltremari, Administrator |
PATRICIA J. KENNEDY,
MICHAEL A. HEILMAN,
CHRISTOPHER THOMAS GRAHAM |
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| Appellee: | Barbara Jean Barnes, by and through Her Relative and Next Friend, Shirley Grigsby, as Conservator of the Estate of Barbara Jean Barnes | GEORGE F. HOLLOWELL, JR. |
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| Topic: | Contract - Arbitration - American Health Lawyers Association Alternative Dispute Resolution Service Rule of Procedure 1.01 |
| Summary of the Facts: | The motion for rehearing is granted, and these opinions are substituted for the original opinions. Barbara Jean Barnes is an incompetent adult with the mental capacity of a three-year old and is incapable of residing alone. After her grandmother became too old to care for her, Barnes’s cousin, Atwood Grigsby, became Barnes’s primary caregiver. After Atwood became ill, Shirley Grigbsy, Atwood’s wife, arranged for Barnes’s admission into Magnolia Healthcare, Inc. d/b/a Arnold Avenue Nursing Home, and signed an admission agreement with an arbitration clause. Several years later, Grigsby, acting as the next friend and conservator of the Estate of Barnes, filed suit against Magnolia Healthcare, Inc., Arnold Avenue Nursing Home, Foundation Health Services, Inc., and Administrator Diane Oltremari, alleging that Barnes was sexually assaulted while residing at Arnold Avenue Nursing Home. Magnolia filed a motion to compel arbitration. The court denied the motion, and Magnolia appeals. |
| Summary of Opinion Analysis: | The arbitration provision in the admission agreement provides that any legal dispute, controversy, demand or claim that arises out of or relates to the admission agreement shall be resolved exclusively by binding arbitration in accordance with the American Health Lawyers Association Alternative Dispute Resolution Service Rules of Procedure for Arbitration. American Health Lawyers Association Alternative Dispute Resolution Service Rule of Procedure 1.01 provides that the Service will administer a “consumer health care liability claim” under the Rules on or after January 1, 2004 only if all of the parties have agreed in writing to arbitrate the claim after the injury has occurred and a copy of the agreement is received by the Service at the time the parties make a request for a list of arbitrators. The complaint seeks remedy for injuries occurring first on January 15, 2005, and then on June 17, 2005. It is undisputed that the parties did not agree to arbitrate the claim after the injury occurred, as required by the rules which were incorporated into the admissions agreement at the behest of Magnolia. Thus, there was no valid agreement to arbitrate. |
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