NHS MANAGEMENT, LLC v. Wright
NHS MANAGEMENT, LLC v. Wright
Concurring Opinion
Wright did not appeal from the trial court's order compelling arbitration. The Alabama Supreme Court released NolandHealth Services, Inc. v. Wright,
Opinion of the Court
NHS Management, LLC, Northport Health Services, Inc., d/b/a Tallassee Health and Rehabilitation, LLC, and Ouida Gandy (hereinafter collectively referred to as "NHS") appeal from the trial court's order granting the "motion to reconsider" the trial court's order compelling arbitration filed by Peter Wright, as administrator of the estate of Viola Jenkins. We reverse and remand.
On May 2, 2006, Wright, as the administrator of Jenkins's estate, sued NHS, alleging negligence and wantonness, violation of certain state statutes, "violation of resident's rights," and breach of contract. Wright alleged that NHS's actions had caused Jenkins to suffer injuries from a fall and/or from an assault by other nursing-home residents and that those injuries had caused or contributed to her death. On August 2, 2006, NHS moved the trial court to compel arbitration and to stay the proceedings. Wright answered NHS's motion to compel arbitration and argued that the arbitration provision in the admission agreement was not enforceable because it was a contract of adhesion. The trial court allowed Wright to conduct limited discovery on the issue whether the admission agreement was a contract of adhesion. On February 9, 2007, NHS filed in the trial court a status report and a supplemental filing in support of its motion to compel arbitration. On April 3, 2007, the trial court conducted a hearing on NHS's motion to compel arbitration. Wright had telephoned NHS's attorney before the hearing and had informed her that Wright would not oppose the motion to compel. Wright did not attend the hearing, and the trial court entered an order granting NHS's motion to compel arbitration and staying all proceedings. Wright did not appeal the trial court's order.
On July 20, 2007, and on August 20, 2007, the trial court requested a status update from the parties, and on August 31, 2007, it entered an order that gave the parties 30 days to give the trial court a written status update of the case or face dismissal of the action. On September 4, 2007, Wright filed a demand for arbitration with JAMS, a dispute-resolution service selected by NHS. On October 4, 2007, JAMS acknowledged the arbitration demand and requested that the parties provide it with additional documentation and that NHS pay additional arbitration fees. On October 26, 2007, before NHS had paid the additional arbitration fees, Wright informed JAMS that he was withdrawing from arbitration. On October 31, 2007, the trial court entered an order dismissing the case for "want of prosecution." On November 14, 2007, Wright moved the trial court to reinstate the case, and the trial court entered an order granting Wright's motion.
On December 14, 2007, Wright filed in the trial court a "Motion to Reconsider the Court's Order Compelling This Matter to Arbitration." In his motion, Wright argued that the trial court should reconsider *Page 1155
its order compelling arbitration in light of the Alabama Supreme Court's May 4, 2007, decision in Noland Health Services,Inc. v. Wright,
[2] "`A strong presumption of correctness attaches to the trial court's determination of a motion made pursuant to Rule 60(b), and the decision whether to grant or deny the motion is within the sound discretion of the trial judge, and the appellate standard of review is whether the trial court [exceeded] its discretion.'"Osborn v. Roche,
Kupfer v. SCI-Alabama Funeral Servs., Inc.,"In Patterson v. Hays,
623 So.2d 1142 ,1145 (Ala. 1993), [the Alabama Supreme] Court stated:"`Although relief from a judgment may be granted under Rule 60(b)(5) if a prior judgment upon which the judgment is based has been reversed or otherwise vacated, or if it is no *Page 1156 longer equitable that the judgment should have prospective application, "[Rule 60(b)(5)] does not authorize relief from a judgment on the ground that the law applied by the court in making its adjudication has been subsequently overruled or declared erroneous in another and unrelated proceeding." 7 Jerome Wm. Moore, Moore's Federal Practice par. 60.26(3)(1991).'
"623 So.2d at 1145. See also City of Daphne v. Caffey,
410 So.2d 8 ,10 (Ala. 1982) (`Rule 60 is not a substitute for an appeal.'); McLeod v. McLeod,473 So.2d 1097 ,1098 (Ala.Civ.App. 1985) (`We first note that Rule 60(b) is an extreme remedy to be used only under extraordinary circumstances.'); Marsh v. Marsh,338 So.2d 422 ,423 (Ala.Civ.App. 1976) (`The cases applying Rule 60(b), though seeking to accomplish justice, have indicated careful consideration for finality of judgment[s]. In that regard, they have required the movant to show good reason for failure to take appropriate action sooner . . . and to show a good claim or defense.')."
In Kupfer, supra, the trial court denied SCI's motion to compel arbitration after it had determined that the contract containing an arbitration clause did not implicate interstate commerce. SCI did not appeal the trial court's denial of its motion to compel arbitration. After the trial court had denied SCI's motion to compel arbitration, but before the time for SCI to file an appeal had run, the Supreme Court of the United States released its decision in Citizens Bank v.Alafabco,
Kupfer,"Had SCI appealed the trial court's April 2, 2003, order, SCI would have been able to argue, once the United States Supreme Court released Alafabco, that Alafabco had changed the law and that the trial court had erroneously determined that the transaction in issue did not fall within the scope of Congress's Commerce Clause power. Because SCI did not appeal, SCI cannot now argue that it is entitled to compel arbitration. SCI failed to do everything reasonably possible to preserve the issue. Therefore, the Supreme Court's decision in Alafabco does not justify granting SCI's motion for relief pursuant to Rule 60(b)(5). See Patterson [v. *Page 1157 Hays],
623 So.2d [1142 ,] 1145 [(Ala. 1993)] (`"[Rule 60(b)(5)] does not authorize relief from a judgment on the ground that the law applied by the court in making its adjudication has been subsequently overruled or declared erroneous in another and unrelated proceeding.'"). Moreover, SCI's July 1, 2003, `motion to reconsider' cannot substitute for an appeal. See Ex parte Dowling,477 So.2d 400 ,404 (Ala. 1985) (`A motion to reconsider cannot be used as a substitute for an appeal.'). To allow SCI to seek relief pursuant to Rule 60(b)(5), Ala. R. Civ. P., would essentially permit SCI to bring an out-of-time appeal and would subvert the principle of the finality of judgments."
In this case, as in Kupfer, Wright did not appeal the trial court's order compelling arbitration, and the Alabama Supreme Court issued its opinion in Noland before the time had run for Wright to file a notice of appeal. Therefore, Wright cannot now use Rule 60(b)(5) to substitute for an appeal.See Dowling,
REVERSED AND REMANDED.
THOMPSON, P.J., and PITTMAN and MOORE, JJ., concur.
BRYAN, J., concurs specially.
Reference
- Full Case Name
- NHS MANAGEMENT, LLC, Et Al. v. Peter WRIGHT, as Administrator of the Estate of Viola Jenkins
- Cited By
- 4 cases
- Status
- Published