Jones v. GGNSC Pierre LLC

Filing 55

ORDER granting in part and denying in part 34 Motion to Dismiss or Stay Proceedings and for Order Compelling Arbitration. Signed by U. S. District Judge Roberto A. Lange on 02/03/2010. (LH)

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UNITED STATES DISTRICT COURT DISTRICT OF SOUTH DAKOTA CENTRAL DIVISION CAROL JONES, individually, and as Special Administrator o f the Estate o f R u t h Butler, d e c e a s e d , Plaintiff, vs. G G N S C Pierre L L C , d / b / a Golden L i v i n g C e n t e r P i e r r e , G o l d e n Gate N a t i o n a l S e n i o r C a r e LLC, G G N S C Equity Holdings LLC, GGNSC Clinical S e r v i c e s , LLC, a n d G G N S C A d m i n i s t r a t i v e S e r v i c e s , LLC, Defendants. * * * * * * * * * CIV. 09-301 I-RAL * * * * * * * * OPINION A N D O R D E R C O M P E L L I N G ARBITRATION I . Introduction The Defendants in this case seek to compel arbitration under a contract provision s p e c i f y i n g b i n d i n g a r b i t r a t i o n " i n a c c o r d a n c e w i t h t h e N a t i o n a l A r b i t r a t i o n F o r u m Code o f Procedure." The National Arbitration Forum ("NAF"), however, has entered into a Consent Judgment where it no longer arbitrates consumer disputes, such as the one at issue in this case. (Doc. 42 at Exhibit H). A split in authority exists over whether the unavailability o f the NAF as a forum for consumer disputes renders arbitration agreements contemplating NAF as a forum unenforceable, o r whether the Federal Arbitration Act in such cases requires the Court to appoint an arbitrator. Based on the language o f the arbitration contract in this case, t h e p r o v i s i o n s o f 9 U.S.C. § 5 a n d a S o u t h D a k o t a s t a t u t e , a n d t h e c i r c u m s t a n c e s o f t h i s c a s e , the Court grants in part Defendants' Motion to Dismiss or Stay Proceedings and for Order Compelling Arbitration (Doc. 34). II. Facts Material to Arbitration Issue PlaintifTCarol Jones is the special administrator o f t b e Estate o f Ruth Butler. On S e p t e m b e r I , 1995, R u t h B u t l e r s i g n e d a d u r a b l e p o w e r o f a t t o r n e y a p p o i n t i n g h e r d a u g h t e r Carol Jones as her agent to transact business o n Ms. B u t l e r ' s behalf. (Doc. 34 at Exhibit B). O n or about July 9, 2003, Ruth Butler became a resident at a nursing h o m e then run by Beverly Health Care. The Defendants in this ease are successors in interest to Beverly Health Care. On b e h a l f o f Ms. Butler, Carol Jones executed a series o f agreements when p l a c i n g h e r m o t h e r i n t h e n u r s i n g h o m e r u n by B e v e r l y H e a l t h C a r e . A m o n g t h e s e a g r e e m e n t s was a R e s i d e n t a n d F a c i l i t y A r b i t r a t i o n A g r e e m e n t ( " A r b i t r a t i o n A g r e e m e n t " ) . (Doc. 34 at E x h i b i t A). T h e Arbitration A g r e e m e n t was n o t the s u b j e c t o f any negotiation b e t w e e n Ms. Jones and Beverly Health Care. Ms. Jones recognized h e r signature on the agreement, o n b e h a l f o f her mother, but did n o t recall thc agrecmcnt itsclf. (Doc. 42 at Exhibit C). T h e Arbitration A g r c c m c n t states in rclcvant part: T h c parties to this Arbitration A g r c c m e n t acknowledgc and agrec that u p o n c x e c u t i o n , this A r b i t r a t i o n A g r e c m c n t b c c o m e s p a r t o f t h c A d m i s s i o n A g r c e m e n t , and t h a t the A d m i s s i o n A g r e e m e n t e v i d e n c e s a transaction in interstate c o m m e r c e governed by the Federal Arbitration Act. I t is understood and agreed by Facility and Resident that any and all c l a i m s , d i s p u t c s , a n d c o n t r o v e r s i e s ( h e r e a f t e r c o l l e c t i v e l y r e f e r r e d to as a " c l a i m " or collectively as " c l a i m s " ) arising o u t of; or in connection with, or relating in any way to the A d m i s s i o n A g r e e m e n t or any service or health care p r o v i d e d by the Facility to t h e Resident shall be resolved exclusively by b i n d i n g arbitration to b e c o n d u c t e d a t a place agreed upon by the Parties, o r in the absence o f such a n agreement, at the Facility, in accordance with the National Arbitration Forum Code o f Procedure, which is hereby incorporated into this A

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