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Bickel v. Sunrise Assisted Living
141 Cal. Rptr. 3d 586
Cal. Ct. App.
2012
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Background

  • 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)
Read the full case

Case Details

Case Name: Bickel v. Sunrise Assisted Living
Court Name: California Court of Appeal
Date Published: May 21, 2012
Citation: 141 Cal. Rptr. 3d 586
Docket Number: No. F062443
Court Abbreviation: Cal. Ct. App.