Bickel v. Sunrise Assisted Living
141 Cal. Rptr. 3d 586
Cal. Ct. App.2012Background
- Plaintiff Ruth Chappell alleged elder abuse and neglect at Sunrise Assisted Living, governed by the Elder Abuse Act (Welf. & Inst. Code §15600 et seq.).
- The residency agreement she signed included an arbitration clause, with a separate provision waiving each party’s arbitration costs and fees.
- The trial court severed the fee-waiver provision, finding it contrary to public policy under §15657’s enhanced remedies (attorney fees and costs).
- Arbitration proceeded; Chappell prevailed on elder abuse claims, and the arbitrator awarded fees and costs under §15657 totaling approximately $761,420.00.
- Judgment confirming the arbitration award was entered; Sunrise appealed, challenging severance of the fee-waiver provision.
- The appellate court affirmed, holding the waiver of statutory attorney fees under the Elder Abuse Act was contrary to public policy and severable from the arbitration agreement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the fee waiver violate public policy and can it be severed? | Chappell argues the waiver defeats the Elder Abuse Act purpose and is unwaivable. | Sunrise contends arbitration and severance should enforce the agreement without treating the waiver as public-policy violative. | Yes; the waiver is contrary to public policy and may be severed. |
| Should the trial court have severed only the fee waiver while enforcing arbitration for the rest of the agreement? | Chappell contends severance preserves statutory remedies and forum integrity. | Sunrise maintains severance is unnecessary if the agreement remains valid overall. | Yes; severance was appropriate to preserve §15657 remedies while enforcing arbitration. |
| Are the Elder Abuse Act remedies, including attorney fees, unwaivable under public policy? | Chappell asserts §15657 rights are unwaivable to promote public policy and private enforcement. | Sunrise argues waivers can be negotiated and enforceable in predispute arbitration. | No; §15657 rights are unwaivable when designed to protect vulnerable elders and promote public purposes. |
Key Cases Cited
- Armendariz v. Foundation Health Psychcare Services, Inc., 24 Cal.4th 83 (Cal. 2000) (unwaivability of public-purpose statutory rights; severance when not permeated by unconscionability)
- Gentry v. Superior Court, 42 Cal.4th 443 (Cal. 2007) (severance of invalid arbitration provisions when rest of agreement enforceable)
- Delaney v. Baker, 20 Cal.4th 23 (Cal. 1999) (heightened civil remedies for elder abuse; public purpose of §15657)
- Covenant Care, Inc. v. Superior Court, 32 Cal.4th 771 (Cal. 2004) (public policy and statutory protection for vulnerable elders; severance framework)
- Broughton v. Cigna Healthplans, 21 Cal.4th 1066 (Cal. 1999) (arbitration and statutory rights; vindication in arbitral forum)
