Pacifica Rosemont, LLC v. Banner
1:23-cv-00747
| D.N.M. | Jun 4, 2024Background
- Suzanne Kiermont, as Power of Attorney for Elizabeth Garren, executed an Arbitration Agreement with Pacifica Rosemont's assisted living facility in August 2021, prior to Garren's admission in September 2021.
- Garren, who had multiple preexisting health conditions, was admitted to the facility's memory care unit and sustained various injuries and health issues during her stay.
- Thomas Banner, as Personal Representative for Garren’s wrongful death estate, alleges negligence by Pacifica Rosemont, asserting these issues led to Garren’s injuries and subsequent lawsuit in state court.
- Pacifica Rosemont moved to compel arbitration in federal court based on the previously signed Arbitration Agreement.
- The parties dispute the enforceability of the Arbitration Agreement, with arguments centering on unconscionability and applicability.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Substantive unconscionability | Agreement valid and binding | Agreement is one-sided; excludes facility’s likeliest claims from arbitration | Not unconscionable under controlling Tenth Circuit law |
| Procedural unconscionability | No evidence to support claim | Agreement procedurally unfair, but provides no supporting facts | No evidence of procedural unconscionability |
| Additional discovery request | Discovery unnecessary; documents are agreed | Additional discovery needed regarding unconscionability | Discovery not warranted |
| Applicability of Arbitration Agreement | Agreement applies to estate’s claims | Agreement should not bind wrongful death estate; is unfair | Agreement is enforceable and compels arbitration |
Key Cases Cited
- AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (federal policy favoring arbitration agreements)
- AT&T Techs., Inc. v. Commc'ns Workers of Am., 475 U.S. 643 (presumption in favor of arbitrability; resolve doubts in favor of arbitration)
- Sanchez v. Nitro-Lift Techs, L.L.C., 762 F.3d 1139 (arbitration is a matter of contract; FAA’s strong presumption favors enforcement)
- THI of New Mexico at Hobbs Center, LLC v. Patton, 741 F.3d 1162 (FAA preempts state law disfavoring arbitration as inferior to litigation)