20 Cal.App.5th 835
Cal. Ct. App.2018Background
- Antonio Avila, an 87-year-old patient, was admitted to Kindred Hospital and within days died after an alleged neglect incident involving a dislodged feeding tube.
- Antonio had executed a 2007 durable power of attorney naming his son Alex as agent; Alex signed a facility ADR (arbitration) agreement on Antonio’s behalf the day after admission.
- The ADR agreement referenced California law, MICRA §1295 language, and provided arbitration (after mediation) of medical-malpractice and related claims, including claims by heirs/agents.
- Plaintiffs sued for negligence/elder abuse (on behalf of Antonio and Alex) and wrongful death (Alex individually). Defendants petitioned to compel arbitration.
- The trial court held Alex had not agreed in his personal capacity to arbitrate the wrongful-death claim and, exercising its discretion under CCP §1281.2(c), refused to enforce arbitration for the remaining claims because arbitration of some claims but not Alex’s wrongful death claim risked inconsistent rulings.
- The Court of Appeal affirmed: MICRA §1295 did not apply to bind Alex, no evidence Alex consented in his personal capacity, and the trial court did not abuse its discretion under §1281.2(c).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether MICRA §1295 binds Alex’s wrongful-death claim to arbitration | Alex: the wrongful-death claim is pleaded under the Elder Abuse Act and not MICRA; §1295/MICRA thus does not apply | Kindred: §1295 and Ruiz allow binding heirs/wrongful-death claimants when arbitration agreements refer to medical malpractice | Held: §1295 does not apply because the wrongful-death claim is pleaded under the Elder Abuse Act; Ruiz is inapplicable |
| Whether Alex (a non-signatory in his personal capacity) agreed to arbitrate his wrongful-death claim by signing as his father’s agent | Alex: he signed only as agent; no intent to waive his personal jury-trial rights | Kindred: agent’s signature binds heirs/related claimants as stated in agreement; Alex’s wrongful-death claim should be arbitrable | Held: No. Signing as agent did not show personal intent to arbitrate independent wrongful-death claims; arbitration cannot be compelled against Alex |
| Whether FAA or California Arbitration Act procedures apply | Alex: agreement references California law; FAA procedural rules were not adopted | Kindred: FAA governs and preempts §1281.2(c) analysis | Held: FAA procedural rules do not apply absent express adoption; CAA procedures apply here and §1281.2(c) may be invoked |
| Whether the trial court properly refused to compel arbitration under CCP §1281.2(c) due to risk of inconsistent rulings | Alex: refusal is proper because parallel arbitration and court litigation could produce conflicting rulings on common facts | Kindred: public policy/favoring arbitration requires arbitration; §1281.2(c) should not bar arbitration | Held: Court did not abuse discretion — all §1281.2(c) requirements met and risk of inconsistent rulings justified denial |
Key Cases Cited
- Sanchez v. Valencia Holding Co., 61 Cal.4th 899 (Cal. 2015) (FAA procedural rules do not apply in state court absent express adoption)
- Cronus Investments, Inc. v. Concierge Services, 35 Cal.4th 376 (Cal. 2005) (state arbitration law governs procedures unless FAA is expressly adopted)
- Volt Info. Sciences, Inc. v. Board of Trustees, 489 U.S. 468 (U.S. 1989) (arbitration is matter of consent; choice-of-law clauses can preserve state law procedures)
- AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (U.S. 2011) (FAA preempts state rules that discriminate against arbitration)
- Ruiz v. Podolsky, 50 Cal.4th 838 (Cal. 2010) (MICRA §1295 can bind heirs to arbitration when claims are MICRA professional negligence)
- Daniels v. Sunrise Senior Living, 212 Cal.App.4th 674 (Cal. Ct. App. 2013) (refusal to compel arbitration for independent wrongful-death claim when agent signed only as agent)
- Fitzhugh v. Granada Healthcare & Rehabilitation Center, 150 Cal.App.4th 469 (Cal. Ct. App. 2007) (agent’s signature does not bind agent personally absent evidence of intent)
- Sababin v. Superior Court, 144 Cal.App.4th 81 (Cal. Ct. App. 2006) (definition of neglect under Elder Abuse Act distinguishes custodial neglect from medical malpractice)
- Horwich v. Superior Court, 21 Cal.4th 272 (Cal. 1999) (wrongful-death action is an independent cause of action for heirs)
- Goldman v. SunBridge Healthcare, 220 Cal.App.4th 1160 (Cal. Ct. App. 2013) (arbitration requires party’s consent; strong policy favoring arbitration does not override nonparty rights)