Taylor v. UDI #4, LLC

• Decision Date: 14 September 2021
• Docket Number: 4-21-0057
• Parties: LINDA TAYLOR, as Independent Executor of the Estate of Floyd Dodson, Deceased, Plaintiff-Appellant, v. UDI #4, LLC, d/b/a LEROY MANOR; LEROY SOUTH BUCK, LLC; UNLIMITED DEVELOPMENT, INC., an Illinois Not-For-Profit Corporation; BEKIME FEEZOR-BRANCH, RN; and NASHIRA BROWN, LPN, Defendants-Appellees.
• Court: United States Appellate Court of Illinois

2021 IL App 210057-U

LINDA TAYLOR, as Independent Executor of the Estate of Floyd Dodson, Deceased, Plaintiff-Appellant, v. UDI #4, LLC, d/b/a LEROY MANOR; LEROY SOUTH BUCK, LLC; UNLIMITED DEVELOPMENT, INC., an Illinois Not-For-Profit Corporation; BEKIME FEEZOR-BRANCH, RN; and NASHIRA BROWN, LPN, Defendants-Appellees.

No. 4-21-0057

Court of Appeals of Illinois, Fourth District

September 14, 2021

This Order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

Appeal from the Circuit Court of McLean County No. 19L161 Honorable Paul G. Lawrence, Judge Presiding.

JUSTICE STEIGMANN delivered the judgment of the court. Justices Cavanagh and Harris concurred in the judgment.

ORDER

STEIGMANN JUSTICE

¶ 1 Held: The appellate court affirmed the trial court's grant of defendants' motion to dismiss and compel arbitration because (1) the health care power of attorney was valid and (2) the arbitration agreement was not unconscionable.

¶ 2 In November 2019, Linda Taylor, as independent executor of Floyd Dodson's estate, filed a complaint against defendants, UDI #4, LLC, d/b/a Leroy Manor (Leroy Manor) Leroy South Buck, LLC; Unlimited Development, Inc.; Bekime Feezor-Branch, RN; and Nashira Brown, LPN (hereinafter collectively referred to as "defendants"), alleging defendants provided negligent nursing home care to Floyd Dodson, which resulted in his death.

¶ 3 In April 2020, defendants filed a motion to dismiss and compel arbitration, asserting that when Floyd was admitted to Leroy Manor, he and his son, Jack Dodson, signed a nursing home contract and arbitration agreement that required some of Taylor's claims to be submitted to arbitration. Taylor responded that the motion should be denied because (1) Floyd lacked the capacity to contract when he signed the admissions paperwork and (2) the arbitration agreement was substantively and procedurally unconscionable. Following a December 2020 hearing, the trial court granted the motion.

¶ 4 Taylor appeals, arguing the trial court erred by compelling arbitration. We disagree and affirm.

¶ 5 I. BACKGROUND

¶ 6 A. The Complaint

¶ 7 In November 2019, Linda Taylor filed a complaint against defendants, alleging they provided negligent care for Floyd Dodson. The complaint contained a total of 11 counts against defendants, asserting claims under the Illinois Nursing Home Care Act (210 ILCS 45/3-714 (West 2018)), the Illinois Survival Act (755 ILCS 5/27-6 (West 2018)), and the Wrongful Death Act (740 ILCS 180/1 et seq. (West 2018)).

¶ 8 The complaint alleged that on August 22, 2018, Floyd became a resident at Leroy Manor, a long-term care facility. Defendants were aware Floyd was a fall risk. Floyd needed help engaging in daily activities such as walking, eating, and dressing. On September 30, 2018, Floyd suffered a fall that resulted in substantial injuries, including a subdural hematoma and an orbital fracture. Floyd died on October 8, 2018. Taylor was appointed as the independent executor of Floyd's estate. Taylor alleged defendants provided negligent care before and after the fall, which resulted in Floyd's death.

¶ 9 B. The Motion To Dismiss and Related Proceedings

¶ 10 1. The Defendants' Motion

¶ 11 In April 2020, defendants filed a section 2-619(a)(9) (735 ILCS 5/2-619(a)(9) (West 2018)) motion to dismiss and compel arbitration as to the Nursing Home Care Act and Survival Act counts in the complaint. Defendants argued that Floyd and Jack Dodson, his son and legal representative, entered into a valid and enforceable arbitration agreement.

¶ 12 In support of their motion, defendants submitted the affidavit of Erin Murray. She averred that she was the admissions director for Leroy Manner on August 22, 2018, the day that Floyd was admitted, and led new residents and their families through the admissions paperwork and process. Murray explained that pursuant to her standard practices, she would discuss the nursing home contract and arbitration agreement with residents and "representatives of residents." Murray's affidavit stated the following:

"I would inform a new resident and potentially, a resident's representative, that, in the event of any dispute or legal action taken by either the resident or Leroy Manor, the dispute or legal action would need to be submitted to arbitration. I would explain to a new resident or a resident's representative that, in the event the resident pursues legal action relating to the skilled nursing services provided by Leroy Manor, the dispute and/or legal action would be submitted to arbitration, per the terms of the arbitration agreement."

Murray further explained that when arbitration began, each side would choose an arbitrator and those two arbitrators would jointly select a third. Murray said her "discussion with each new resident and/or the resident's representative on the terms and meaning of the arbitration agreement was always part of the admissions process, as of August 2018." Murray averred that she followed her standard practice on August 22, 2018.

¶ 13 The defendants attached to Murray's affidavit a copy of the nursing home contract and arbitration agreement. Both documents were signed by Floyd and Jack. Jack signed the nursing home contract in the location marked for "representative(s)." Three lines above Jack's signature, boxes labeled "health care power of attorney" and "financial power of attorney" were marked with an "X," apparently signifying he was signing in that capacity. The arbitration agreement was a separate two-page document, double spaced, written in italicized font. The relevant portion stated the following:

"Without limiting any rights set forth in other provisions of this AGREEMENT, any and all disputes arising hereunder shall be submitted to binding arbitration and not to a court for determination. Arbitration shall commence after written notice is given from either party to the other, such arbitration shall be accomplished expeditiously in the county and state where the property which is the subject of this AGREEMENT is located, and shall be conducted in accordance with the rules of the American Arbitration Association ("AAA"). The arbitration shall be conducted by three (3) arbitrators, one of whom shall be appointed by FACILITY and one whom shall be appointed by RESIDENT. The third arbitrator shall be appointed by the first two arbitrators. The arbitrator shall be selected from a list of arbitrators submitted by the AAA. Judgment upon the award rendered by the arbitrators may be entered in any court having jurisdiction thereof. Arbitration shall not commence until the party requesting it has deposited one thousand five hundred and No/100 U.S. Dollars ($1, 500.00) with the arbitrators as a retainer for the arbitrators' fees and costs. The party requesting arbitration shall advance such sums as are required from time to time by the arbitrators to pay the arbitrators' fees and costs, until the prevailing party is determined or the parties have agreed in writing to an alternate allocation of fees and costs. Each party shall pay its own legal fees and costs and any other fees incurred in connection with an arbitration proceeding which arises out of or relates in any way to this AGREEMENT; provided, however, that the arbitration panel shall award the arbitrators' fees and costs to the prevailing party in its arbitration judgment."

The second paragraph of the agreement stated that, in the event that a court determined the dispute was not subject to arbitration, the parties agreed to (1) waive the right to a jury and proceed to a bench trial and (2) the prevailing party would be entitled to recover "all costs incurred, including reasonable attorney's fees and costs, whether incurred before trial, at trial, in bankruptcy proceedings, or on appeal."

¶ 14 2. Taylor's Response

¶ 15 The parties engaged in discovery related to the arbitration agreement. In October 2020, Taylor filed a response to defendant's motion to dismiss in which she argued that the agreement was invalid because (1) Floyd lacked the capacity to contract and (2) Jack never acted as Floyd's health care agent under a power of attorney. Alternatively, Taylor asserted that the agreement was unenforceable because it was substantively and procedurally unconscionable and against public policy.

¶ 16 Jack and Taylor submitted affidavits in support of the response. Jack stated that he drove Floyd to Leroy Manor on August 22, 2018. Jack and Floyd first went to a residential room before Jack left and went to a different room to sign admissions paperwork. Jack stated he signed the admission documents for Floyd, believing he had to do so for his father to be admitted to the facility. Jack also said his father never authorized Jack to sign anything on his behalf. Jack stated that no one explained the arbitration agreement to him or the rights he was giving up and had someone done so, he would have refused to sign and taken his father elsewhere for care.

¶ 17 Jack further stated he was never designated as Floyd's health care agent pursuant to a power of attorney, he was never told Floyd had to sign or did sign a power of attorney, and he never saw Floyd sign anything that day. Jack stated that Floyd (1) could not read, (2) had an eighth-grade education, (3) could not speak, and (4) in Jack's opinion, "had my father been presented with any documents at the time of his admission ***, I do not believe that he would have been able to understand the documents."

¶ 18 Taylor's affidavit averred that (1) she was present for the signing of the admission documents, (2) Floyd was not present, nor did Taylor see him sign anything that day, (3) Floyd could not read, (4) Jack was never authorized to act...