Briarcliff Nursing Home, Inc. v. Turcotte
Decision Date | 25 June 2004 |
Citation | 894 So.2d 661 |
Parties | BRIARCLIFF NURSING HOME, INC., d/b/a Integrated Health Services at Briarcliff, and James Anthony Clements v. David TURCOTTE, executor of the estate of Noella Turcotte, deceased. Briarcliff Nursing Home, Inc., d/b/a Integrated Health Services at Briarcliff, and James Anthony Clements v. Kyra L. Woodman, administratrix of the estate of Sarah Carter, deceased. |
Court | Alabama Supreme Court |
J. Mitchell Frost, Jr., and Champ Lyons III of Ferguson, Frost & Dodson, LLP, Birmingham (brief on application for rehearing filed by J. Mitchell Frost, Jr., Neal D. Moore III, and Rachel R. Thompson of Ferguson, Frost & Dodson, LLP, Birmingham), for appellants.
Robert L. Pittman of Beasley, Allen Crow, Methvin, Portis & Miles, P.C., Montgomery, for appellee David Turcotte.
J. Paul Sizemore of Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., Montgomery, for appellee Kyra L. Woodman.
Russell Jackson Drake of Whatley Drake, L.L.C., Birmingham; Deborah Zuckerman, Bruce Vignery, and Dorothy Siemon of the AARP Foundation, Washington, D.C.; Michael Schuster, of the AARP, Washington, D.C.; and Edward King of the National Senior Citizens Law Center, Washington, D.C., for amici curiae AARP, National Citizens' Coalition for Nursing Home Reform, and Alabama Silver Haired Legislature, in support of appellees. Richard J. Brockman and Mary Brunson Whatley of Johnston Baron Proctor & Powell, LLP, Birmingham, for amicus curiae the Alabama Nursing Home Association, in support of the appellants.
Matthew C. McDonald and Kirkland E. Reid of Miller Hamilton Snider & Odom, LLC, Mobile, for amici curiae the Alabama Civil Justice Reform Committee and the Business Council of Alabama, in support of the appellants.
David G. Wirtes, Jr., and George W. Finkbohner III of Cunningham, Bounds, Yance, Crowder & Brown, LLC, Mobile, for amicus curiae National Association of Consumer Advocates, in support of appellees.
Leila H. Watson of Cory, Watson, Crowder & DeGaris, P.C., Birmingham, for amicus curiae Alabama Trial Lawyers Association, in support of appellees.
On Application for Rehearing
The opinion of February 6, 2004, is withdrawn and the following is substituted therefor.
Briarcliff Nursing Home, Inc., d/b/a Integrated Health Services at Briarcliff, and James Anthony Clements, the defendants in actions pending in the Shelby Circuit Court, appeal the denial of their motions to compel the plaintiffs David Turcotte, executor of the estate of Noella Turcotte, deceased, and Kyra L. Woodman, administratrix of the estate of Sarah Carter, deceased, to arbitrate their wrongful-death claims. The appeals have been consolidated because they raise identical issues. We reverse and remand.
Turcotte and Woodman separately sued Briarcliff and Clements for the alleged wrongful deaths of Noella Turcotte and Sarah Carter while Noella and Sarah were residents at a nursing home owned and operated by Briarcliff. Clements was the administrator of the nursing home at the time of Noella's and Sarah's deaths. (Briarcliff and Clements are hereinafter collectively referred to as "Briarcliff.") Briarcliff moved to compel arbitration on the ground that agents for Noella and Sarah had signed admission contracts that contained an arbitration provision. Turcotte and Woodman opposed the motions to compel arbitration on the grounds that neither of them, in their capacities as executor and administratrix, respectively, of the deceased estates had signed or had otherwise entered into the admission contracts and that the "fiduciary parties" who signed the admission contracts for Noella and Sarah while they were alive could not contractually affect the then nonexistent wrongful-death claims. Turcotte and Woodman also argued that the arbitration provision was a part of a contract of adhesion and was unconscionable.
The arbitration provision in the admission contract1 reads:
(Boldface type and capitalization original.) The admission contract relating to Noella is signed by David Turcotte in his capacity as "Fiduciary Party," and the admission contract relating to Sarah is signed by Kyra Woodman in her capacities as "Fiduciary Party" and "Attorney-In-Fact under [a] validly executed power of attorney."
The trial court denied Briarcliff's motions to compel arbitration. Briarcliff appeals, arguing that Turcotte and Woodman must arbitrate their wrongful-death claims because Noella and Sarah, through their agents, signed the admission contracts containing the arbitration provision.
The standard of review of a trial court's ruling on a motion to compel arbitration is de novo. W.D. Williams, Inc. v. Ivey, 777 So.2d 94, 98 (Ala.2000).
""
SouthTrust Bank v. Ford, 835 So.2d 990, 993 (Ala.2002) (citations omitted) (quoting American Gen. Fin., Inc. v. Morton, 812 So.2d 282, 284 (Ala.2001)).
Turcotte and Woodman brought these wrongful-death actions in the names of "the Estate of Noella Turcotte, by and through its Executor David Turcotte" and "the Estate of Sarah Carter by and through its Administratrix, Kyra L. Woodman," respectively. The wrongdoing alleged in both complaints is predicated upon an alleged breach of the duties owed by Briarcliff to Noella and Sarah as residents of the nursing home. Both Noella and Sarah were residents of the nursing home pursuant to the admission contracts, which contained the arbitration provisions.
In SouthTrust Bank, 835 So.2d 990, the underlying dispute involved SouthTrust's negligent cashing of a check on Edwin Edwards's account. Edwards died before the dispute was resolved, and Melody Ford, his daughter, as the administratrix of Edwards's estate, sued SouthTrust alleging that it had negligently cashed the check. She also sued SouthTrust in her individual capacity, asserting related claims. The deposit agreement that governed Edwards's account at SouthTrust contained an arbitration provision. On the basis of that provision, SouthTrust moved to compel arbitration; the trial court denied the motion. SouthTrust appealed, and this Court found that "Melody's claim to recover the value of the improperly paid check is subject to arbitration because she is asserting that claim in her role as the administratrix of Edwards's estate." Id. at 994. We further stated:
Id. at 993-94 (citations omitted). Therefore, in this case, Turcotte, as executor of Noella's estate, and Woodman, as administratrix of Sarah's estate, are bound by the arbitration provisions contained in the admission contracts.
We now address Turcotte and Woodman's claims that the arbitration provision was unconscionable. "The burden of proving unconscionability of an arbitration agreement rests with the party challenging the agreement." Green Tree Fin. Corp. v. Vintson, 753 So.2d 497, 504 (Ala.1999), citing Ex parte McNaughton, 728 So.2d 592, 598 (Ala.1998). In Vann v. First Community Credit Corp., 834 So.2d 751, 753 (Ala.2002), this Court stated:
Summarizing the Layne v. Garner, 612 So.2d 404 (Ala.1992), test in American General Finance, Inc. v. Branch, 793 So.2d 738, 748 (Ala.2000), we stated: "For ease of discussion, we can reduce the Layne v. Garner test further to one comprised of two essential elements: (1) terms that are grossly favorable to a party that has (...
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