Macpherson v. Magee Mem'l Hosp. for Convalescence
| Decision Date | 25 November 2015 |
| Citation | 2015 PA Super 248,128 A.3d 1209 |
| Parties | Patrick J. MACPHERSON, Executor of the Estate of Richard MacPherson, Deceased, v. The MAGEE MEMORIAL HOSPITAL FOR CONVALESCENCE d/b/a Magee Rehabilitation Hospital, Jefferson Health System, Inc., TJUH System, Manor Care of Yeadon PA, LLC, d/b/a ManorCare Health Services–Yeadon, HCR Manor Care, Inc., ManorCare, Inc., HCR Healthcare, LLC, HCR II Healthcare, LLC, HCR III Healthcare, LLC Appeal of Manor Care of Yeadon PA, LLC, d/b/a ManorCare Health Services–Yeadon, HCR Manor Care, Inc., Manor Care, Inc., HCR Healthcare, LLC, HCR II Healthcare, LLC, HCR III Healthcare, LLC, Appellants. |
| Court | Pennsylvania Superior Court |
William J. Mundy, West Conshohocken, for appellants.
Stephen Trzcinski, Philadelphia, for appellee.
Appellants, Manor Care of Yeadon PA, LLC, d/b/a Manor Care Health Services–Yeadon, et al. (“Manor Care”), appeal from the trial court's order overruling their preliminary objections to the trial court's jurisdiction and venue in this action filed by Appellee, Patrick J. MacPherson (“MacPherson”), as executor of the estate of his brother, Richard MacPherson (“Decedent”). The preliminary objections were based on the existence of an arbitration agreement between Manor Care and Decedent. Following our careful review of the record, and in consideration of the applicable law and arguments of the parties, we reverse and remand this case for referral to arbitration.
On August 20, 2009, Decedent, who was fifty-four years old and had no history of dementia or mental illness, was admitted to Magee Rehabilitation Hospital (“Magee”).1 On September 15, 2009, Decedent was admitted to Manor Care, a nursing home facility.2 Decedent was transferred to Mercy Fitzgerald Hospital on September 19, 2009, and readmitted to Manor Care on September 24, 2009. On October 6, 2009, Decedent and a Manor Care representative executed an arbitration agreement (“Agreement”), which provided that any dispute between the parties would be submitted to binding arbitration. Decedent resided at Manor Care until his death on February 1, 2010. On January 27, 2012, MacPherson filed a complaint advancing claims of negligence, negligence per se, corporate negligence, wrongful death, and survivorship in connection with Decedent's stays at Magee and Manor Care. On March 30, 2012, Manor Care filed preliminary objections seeking transfer of the case to arbitration pursuant to the Agreement. Following discovery and briefing by the parties, the trial court entered an order on November 20, 2012, overruling Manor Care's preliminary objections. This timely appeal followed.3
A panel of this Court, with one judge dissenting, filed an opinion reversing and remanding this case for referral to arbitration. MacPherson v. The Magee Memorial Hospital for Convalescence, 2014 PA Super 143 (Pa.Super. filed July 10, 2014). Thereafter, MacPherson filed a motion for reargument en banc. We granted the motion and heard oral arguments on March 24, 2015. This matter is now ripe for disposition.
Manor Care raises four issues on appeal, all of which challenge the trial court's refusal to transfer this matter to arbitration,4 as follows:
I. Whether the Trial Court erred in overruling [Manor Care's] Preliminary Objections seeking to compel arbitration without applying or acknowledging the liberal standards favoring arbitration of disputes contained in the Federal Arbitration Act (“FAA”) or Pennsylvania law?
II. Whether the Trial Court erred in finding that the Decedent, Richard MacPherson, lacked capacity to execute the Arbitration Agreement?
III. Whether the Trial Court erred in finding that the Arbitration Agreement at issue in this case was unenforceable due to both procedural and substantive unconscionability?
IV. Whether the Trial Court erred in finding that the Arbitration Agreement was unenforceable due to the failure of a term in the agreement designating the National Arbitration Forum (“NAF”) to administrate the arbitration?
The Agreement at issue provides as follows:
VOLUNTARY AGREEMENT: If you do not accept this Agreement, the Patient will still be allowed to live in, and receive services in, this Center.
OF ANY DISPUTE BETWEEN THEM. PLEASE READ THIS AGREEMENT CAREFULLY AND IN ITS ENTIRETY BEFORE ACCEPTING ITS TERMS.
This Agreement made on ____ (date) by and between the Parties, Patient Richard MacPherson [handwritten] and/or Patient's Legal Representative ____ (collectively referred to as “Patient”), and the Center Manor Care Yeadon [handwritten], is an Agreement intended to require that Disputes be resolved by arbitration. The Patient's Legal Representative agrees that he is signing this Agreement as a Party, both in his representative and individual capacity.
A. What is Arbitration?: Arbitration is a cost effective and time saving method of resolving disputes without involving the courts. In using arbitration, the disputes are heard and decided by a private individual called an arbitrator. The dispute will not be heard or decided by a judge or jury.
B. AGREEMENT TO ARBITRATE “DISPUTES”: Any and all claims or controversies arising out of or in any way relating to this Agreement, the Admission Agreement or any of the Patient's stays at this Center, or any Center operated by any subsidiary of HCR–Manor Care, Inc., whether or not related to medical malpractice, including but not limited to disputes regarding the making, execution, validity, enforceability, voidability, unconscionability, severability, scope, interpretation, preemption, waiver, or any other defense to enforceability of this Agreement or the Admission Agreement, whether arising out of State or Federal law, whether existing now or arising in the future, whether for statutory, compensatory or punitive damages and whether sounding in breach of contract, tort or breach of statutory duties (including, without limitation except as indicated, any claim based on Patients' Rights or a claim for unpaid Center charges), regardless of the basis for the duty or of the legal theories upon which the claim is asserted, shall be submitted to binding arbitration. Notwithstanding the above, nothing in this Agreement prevents the Patient from filing a grievance or complaint with the Center or appropriate governmental agency; from requesting an inspection of the Center from such agency; or from seeking review under any applicable federal, state or local law of any decision to involuntarily discharge or transfer the Patient from the Center.
1. Administrator: The arbitration shall be administered by National Arbitration Forum (“NAF”), 6465 Wayzata Blvd., Suite 500, Minneapolis, MN 55426; www.arbitration-forum.com (hereinafter “Administrator”). If the Parties mutually agree in writing not to select NAF or if the NAF is unwilling or unable to serve as the Administrator, the Parties shall agree upon another independent entity to serve as the Administrator, unless the Parties mutually agree to not have an Administrator.
2. Demand for Arbitration shall be made in writing, sent to the other Party via certified mail, return receipt requested, and filed with the NAF (unless NAF is mutually waived).
3. Arbitration Panel: The arbitration shall be conducted by three (3) Arbitrators (the “Panel”). Each Party will select one Arbitrator. The two selected Arbitrators will select a third Arbitrator. Each Arbitrator must be a retired State or Federal Court Judge or a Member of the State Bar where the Center is located with at least 10 years of experience as an attorney. NAF approved Arbitrators do not have to be used. If one Party refuses to select its arbitrator within 30 days of a written request for same, then the Administrator shall select that Party's Arbitrator.
4. Sole Decision Maker: The Arbitration Panel is empowered with the sole jurisdiction to, and shall, resolve all disputes, including without limitation, any disputes about the making, validity, enforceability, scope, interpretation, voidability, unconscionability, preemption, severability and/or waiver of this Agreement or the Admission Agreement, as well as resolve the Parties' underlying disputes, as it is the Parties' intent to completely avoid involving the court system. The Panel shall not have jurisdiction to certify any person as a representative of a class of persons and, by doing so, adjudicate claims of persons not directly taking part in Arbitration.
5. Procedural Rules and Substantive Law: The Panel shall apply the Federal Rules of Evidence and Federal Rules of Civil Procedure except where otherwise stated in this Agreement. Also, the Panel shall apply, and the arbitration award shall be consistent with, the State substantive law (including any and all statutory damage caps) for the State in which the Center is located, except as otherwise stated in this Agreement or where preempted by the FAA. The Panel shall apply NAF's Code of Procedure (in effect as of May 1, 2006) unless otherwise stated in this Agreement. NAF's Code of Procedure may be obtained from NAF, (877) 655–7755, www.arbitration-forum.com. The Parties hereby opt-out of NAF Rules (45 regarding indigents; 43 regarding appeals and judicial review).
6. Refusal to Arbitrate: Any Party who refuses to go forward with arbitration acknowledges that the Panel will go forward with the arbitration hearing and render a binding award without the participation of such Party or despite his absence at the hearing.
7. Waiver of Claim: Any claim shall be forever waived if it arose prior to the arbitration hearing and is not presented in such hearing. A claim that is not served within the statute of limitations period applicable to the same claim in a court of law in the state in which this Center is located shall be forever waived.
8. Award. The Panel's award must be unanimous...
To continue reading
Request your trial