Advocat, Inc. v. Heide
2010 Ark. App. 825
| Ark. Ct. App. | 2010Background
- Heide filed a nursing-home negligence action on behalf of an incapacitated Williams.
- Advocat answered and asserted arbitration as a defense but did not attach the arbitration agreement to the initial answer.
- Advocat moved to compel arbitration in July 2009, attaching the arbitration agreement and two letters asserting the right.
- Heide argued Advocat waived arbitration by not attaching the agreement and by engaging in discovery and other litigation steps.
- The circuit court struck Advocat’s amended answer (which attached the agreement) and denied the motion to compel arbitration on procedural grounds.
- The court subsequently reversed and remanded, holding Advocat timely raised arbitration and that Rule 10(d) issues did not mandate fatal nonattachment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was arbitration waived by Advocat's initial pleading? | Heide | Advocat | No waiver; timely arbitration defense raised |
| Does Rule 10(d) require attaching the arbitration agreement to the initial pleading to plead arbitration effectively? | Heide | Advocat | Attachment required only to the motion; not fatal in initial pleading |
| Did Advocat's amended answer prejudicially prejudice Heide? | Heide | Advocat | No substantial prejudice; amended filing proper |
| Should the circuit court have struck the amended answer and denied arbitration entirely based on procedural posture? | Heide | Advocat | Reversed; court may consider arbitration on remand |
Key Cases Cited
- Tri-State Delta Chemicals, Inc. v. Crow, 283 Ark. 196 (1984) (waiver of arbitration right when not timely asserted)
- Neidecker v. Ozark Kenworth, Inc., 283 Ark. 196 (1984) (liberal amendment rule; prejudice limits relation back)
- Neal v. Sparks Regional Medical Center, 347 Ark. 255 (2001) (amendment timing; prejudice considerations)