GGNSC Louisville Hillcreek v. Estate of Robert C. Bramer
Opinion
This case is about nursing homes and the rights their residents surrender should they consent to arbitration. The question presented is whether the estate of a deceased nursing home resident must arbitrate its dispute with the nursing home. Arbitration rests on consent, and the District Court concluded there was none. We agree and AFFIRM .
I. FACTUAL & PROCEDURAL BACKGROUND
Robert C. Bramer was admitted to a Kentucky nursing home called Golden Living Center - Hillcreek multiple times over the course of eighteen months in 2015 and 2016.
See
GGNSC Louisville Hillcreek, LLC v. Estate of Bramer
, No. 3:17-CV-439-DJH,
*483
In July 2017, the nursing home defendants filed a petition to enforce an arbitration agreement against the estate in federal court. Practically, this meant that the parties flipped: the state court plaintiffs became respondents in federal court, and the state court defendants became the petitioners in federal court. The point of the petition to enforce arbitration was to ask the District Court whether the allegations in the state court complaint should go to arbitration rather than a Kentucky jury. The nursing home claims that the parties executed arbitration agreements, while the estate says those agreements are invalid. In this stage of litigation, we are determining only
where
the estate's claims against the nursing home will be decided. The District Court agreed with the estate that no valid agreement covering the final visit existed.
Robert Bramer was admitted to Hillcreek on three occasions: (1) January 5, 2015; (2) January 26, 2015; and (3) July 13, 2016. Each time Hillcreek admitted Bramer, it presented him with an "admissions packet." One of these documents was a contract styled "Alternative Dispute Resolution Agreement." The nursing home's practice was to re-present the same admissions packet upon each new admission to the nursing home, even if the person had been admitted before. So three different copies of the same contract-the Alternative Dispute Resolution Agreement-are in the record. The Bramers' assent, or non-assent, to these agreements is the focus of this case.
The parties disagree on this basic issue: whether the Alternative Dispute Resolution Agreements are signed. The first Agreement of January 5, 2015 displays a mark of some kind in the "Signature of Resident" block, but it is difficult to read. Bramer's estate alleges that this illegible scrawl is a forgery, and Margaret Bramer stated in an affidavit that neither she nor Robert signed that form. As to the second Agreement dated January 26, 2015, Margaret Bramer signed in the "Signature of Resident" block even though Robert was the Resident. The parties agree that the third Agreement of July 13, 2016 is unsigned.
The Alternative Dispute Resolution Agreements are identical and require signatories to arbitrate a wide range of disputes.
2
The Resident understands that he or she has the right to seek advice of legal counsel concerning this Agreement; that *484 his or her signing of this Agreement is not a condition of admission to or residence in the Facility; that he or she may revoke this Agreement by sending written notice to the Facility within thirty (30) days of signing it; and that this Agreement, if not revoked within that time frame, shall remain in effect for all care and services rendered to the Resident at or by the Facility regardless of whether the Resident is subsequently discharged and readmitted to the Facility without renewing, ratifying, or acknowledging this Agreement .
R.23-3, Page ID 708, § IX (emphasis added). The separate Admission Agreement (a different document in the admissions packet) explicitly referenced the Alternative Dispute Resolution Agreement and said: "[I]f you execute, or have executed, an Alternative Dispute Resolution Agreement with us in connection with any admission to our Living Centers, then that Agreement shall be, and remain, binding upon you, and upon us, in accordance with the terms that are set forth in that Agreement."
After the nursing home filed the Petition to Arbitrate in federal court, the parties engaged in motions practice for some months before the District Court took the matter under advisement. In September 2018, the District Court issued a memorandum opinion denying the nursing home's petition to arbitrate and dismissing the case.
II. LEGAL ANALYSIS
Establishing that a valid agreement exists is the first step in evaluating a petition to arbitrate, and the initial burden is on the party seeking to enforce the agreement to produce a written, signed document.
MHC Kenworth-Knoxville/Nashville v. M & H Trucking, LLC
,
A. Arbitration
The Federal Arbitration Act,
A written provision in ... a contract evidencing a transaction involving commerce to settle by arbitration a controversy thereafter arising out of such contract or transaction ... or an agreement in writing to submit to arbitration an *485 existing controversy arising out of such a contract, transaction, or refusal, shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.
An agreement to arbitrate is fundamentally a matter of consent.
Nestle Waters N. Am., Inc. v. Bollman
,
This sounds like the familiar language of hornbook contract law because it is.
Buckeye Check Cashing, Inc. v. Cardegna
,
The instant matter is a not a case mining the vagaries of "ambiguities in the
language
of the agreement."
Waffle House
,
*486 B. Assuming the Validity of the First Agreements, the Parties Abandoned Them
The focus of this case is consent. To evaluate whether consent exists, one approach would be to analyze each of the three Agreements in the record independently; this would include exploring the allegations of forgery as to first Agreement (illegible scrawl), and agency as to the second Agreement (where Margaret Bramer signed on the wrong line as resident). But there is an easier path - the one chosen by the District Court. Even if the earlier Agreements are enforceable, the parties' actions upon the third admission carry legal significance.
For the purposes of this opinion we assume that the first two Agreements had
some
contractual effect.
4
If we accept that the parties had already agreed to arbitrate their disputes, the key question is whether re-presenting the identical contract affected the prior Agreements. We can reach no conclusion other than that re-presenting the contract to the Bramers was behavior unmistakably showing that no prior agreement controlled. As in the instructive
Badgett
case, the nursing home here presented the resident-admittee with the same choice multiple times.
In this case, the legal effect is abandonment. "[W]here it is claimed that by reason of inconsistency between the terms of a new agreement and those of the old the old one is discharged, the fact that such was the intention of the parties must clearly appear." 17B C.J.S.
Contracts
§ 598. The same contract-with identical terms-was presented to the Bramers three times. Each contract said that it would last in perpetuity and apply to each subsequent admission. "The proper interpretation of GGNSC's objective intent is that it again offered Badgett the choice of whether to submit to arbitration."
Badgett
,
"[F]or purposes of rescission, a meeting of the minds may be shown by the conduct of one party inconsistent with the continued existence of a contract, or abandonment or repudiation of the contract, and knowledge of, and acquiescence to, such abandonment or repudiation by the other." 17B C.J.S.
Contracts
§ 591. Presenting an identical agreement in the admissions packet is an act fundamentally inconsistent with the continued existence of an earlier identical agreement.
Texaco, Inc. v. Debusk
,
If the Agreement is a contract that stays in force upon each successive admission-and the Supreme Court has said clearly that the normal rules of contract apply to arbitration contracts-then the actions of these parties at the third admission clearly bespeak a mutual intent to abandon the Agreement. Assume the Bramers had clearly signed the same contract on each of the three occasions Mr. Bramer was admitted. In that case, the newest of the contracts would control. That was the essence of our holding in
Badgett
.
If the Agreement is so comprehensive that it binds the parties to arbitration forever, then why did it need to be presented upon each successive visit? This does not bespeak an intent to ratify but an intent to offer the same choice again to the re-admitted resident. Otherwise re-presentment simply offers the resident a choice they are not contractually allowed to make, or a choice that is meaningless. "This construction would be contrary to the fundamental rule that a written agreement should 'be construed as a whole, giving effect to all parts and every word in it if possible.' "
Badgett
,
Kentucky law is clear that we must effectuate the intent of the parties.
Cantrell Supply, Inc. v. Liberty Mut. Ins. Co.
,
Similarly, arbitration rights can be waived mutually on an implied basis.
See
Netherwood v. Kennedy
, No. 2008-CA-001508-MR,
Here, each party took an action with legal significance. The nursing home was not required to present the Bramers with a new agreement, but did.
Badgett
,
III. CONCLUSION
The nursing home offers a slew of inapposite cases to attack the District Court's conclusions. Its only other main argument construes the District Court's decision as violating a constitutional right to arbitration. Appellants' Brief at 14 (referencing the Kentucky Constitution). The federal policy favoring arbitration does not mean that the entity seeking to arbitrate wins every time. Our interpretation, like the District Court's, rests on the most basic principles of contract formation. Appellants' attempts to distinguish Badgett only persuade us that the two cases are analogous.
Our conclusion that a contract was not formed does not bespeak judicial intent to subvert arbitration.
Cf
.
Badgett
,
Denying the petition to arbitrate does not mean that Margaret Bramer and Robert Bramer's estate will prevail on any of their claims. Our ruling simply means that there was no valid agreement to arbitrate the dispute. Guided by Badgett and the persuasively reasoned opinion of the District Court, we AFFIRM .
The plaintiffs in state court were the estate of Robert Bramer, represented by his wife Margaret Bramer as executrix, and Margaret Bramer individually. The defendants in state court were the corporate entities operating the nursing home: GGNSC Louisville Hillcreek, LLC, d/b/a Golden Living Center - Hillcreek; GGNSC Administrative Services, LLC; GGNSC Clinical Services, LLC; Hillcreek Leasing, LLC, d/b/a Hillcreek Rehabilitation and Care; and Chris Malvern, in her capacity as administrator of Golden Living Center - Hillcreek.
Margaret Bramer's claims for wrongful death and loss of consortium are not arbitrable.
Ping v. Beverly Enters., Inc.
,
Record citations refer to the docket before the District Court.
This is an extremely dubious proposition for three reasons. First, the affidavits submitted by Bramer and her expert as to the validity of the signature on the first Agreement clearly show a genuine issue of material fact.
Great Earth Companies, Inc. v. Simons
,
In
Carter
, a husband and wife tore up their antenuptial agreement. The Kentucky Court of Appeals said: "Like tossing a document into a fire, tearing up a document is clearly a positive and unequivocal act inconsistent with the continued existence of the written contract."
Reference
- Full Case Name
- GGNSC LOUISVILLE HILLCREEK, LLC; GGNSC Administrative Services, LLC; GGNSC Clinical Services, LLC, Petitioners-Appellants, v. ESTATE OF Robert C. BRAMER, BY AND THROUGH Margaret A. BRAMER, Administratrix; Margaret A. Bramer, Individually, Respondents-Appellees.
- Cited By
- 19 cases
- Status
- Published