96 So. 3d 986
Fla. Dist. Ct. App.2012Background
- Estate sues LTC in a nursing home wrongful death action arising from 2008 events during Mrs. Robinson's residency.
- Arbitration agreement was executed during Mrs. Robinson's initial admission in February/March 2008, signed by her husband via power of attorney.
- Trial court denied arbitration without explanation; LTC appealed, seeking enforcement of arbitration for the initial stay.
- Readmissions in 2008 required Mrs. Robinson to sign anew, but LTC used the readmission form signed by Mrs. Robinson, not the power-of-attorney holder.
- Agreement included a liability-limitation provision deemed unenforceable under Shotts, but severable via a broad severability clause.
- On remand, the court considered whether readmission terms bound Mrs. Robinson personally or only through her POA, and whether first-stay claims must arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether arbitration applies to Mrs. Robinson's initial admission. | Estate argues initial agreement binds LTC and Mrs. Robinson via POA. | LTC contends arbitration applies broadly to all signatories including assignees. | Arbitration enforced for the initial stay. |
| Whether readmission terms bind Mrs. Robinson personally when signed by her, not the POA. | Estate may rely on subsequent admissions to compel arbitration. | LTC asserts readmission terms bind as per original agreement terms for the same individuals. | Readmission terms do not bind Mrs. Robinson personally; arbitration not enforced for readmissions. |
| Effect of the liability-limitation provision within the arbitration agreement. | Limitation of liability should be enforceable. | Statement of liability cap is unenforceable under Shotts and thus invalid. | Liability limitation unenforceable but severable; arbitration remains valid for other terms. |
| Whether the severability clause preserves arbitration despite the unenforceable limitation. | Severability should preserve the rest of the agreement. | If limitation invalidates the agreement, no arbitration. | Severability clause allows severance of the liability limitation; rest of agreement remains enforceable. |
Key Cases Cited
- Shotts v. OP Winter Haven, Inc., 86 So.3d 456 (Fla. 2011) (liability-limitation provisions in nursing-home arbitration agreements are unenforceable but severable)
- FL-Carrollwood Care, LLC v. Gordon, 72 So.3d 162 (Fla. 2d DCA 2011) (arbitration agreement not unconscionable where punitive damages not limited and severability applies)
- RX Solutions, Inc. v. Express Pharmacy Servs., Inc., 746 So.2d 475 (Fla. 2d DCA 1999) (readmission agreements should not be construed to bind without clear personal assent)
- Carroll v. Gore, 143 So. 633 (Fla. 1932) (out-of-state power-of-attorney issues governed by applicable law)
- Estate of Smith v. Southland Suites of Ormond Beach, LLC, 28 So.3d 103 (Fla. 5th DCA 2010) (broad powers in durable power of attorney; flexibility in agency scope)