Robinson Nursing & Rehabilittion Center, LLC v. Briley
2022 Ark. App. 85
| Ark. Ct. App. | 2022Background
- Robinson operated a nursing facility; a class action (Phillips) alleged chronic understaffing and related claims for residents from June 11, 2010 to March 4, 2016.
- Robinson filed multiple motions in the class action to compel arbitration for hundreds of residents based on admission/arbitration agreements; the trial court denied those motions.
- The Arkansas Supreme Court (Phillips II) reviewed the denials, found many arbitration agreements valid and that covered claims fell within their scope, but also affirmed invalidity as to certain subsets and issues.
- James Briley (special administrator for Alice Ann Briley) filed an individual suit alleging negligence and other claims; an arbitration agreement for Ms. Briley had been signed by her son as attorney-in-fact.
- After Phillips II and transfer of Briley’s case to the same division, Robinson moved to compel arbitration in Briley’s case; the circuit court denied the motion (citing waiver or other grounds), and Robinson appealed.
- The Court of Appeals reversed, holding Phillips II precluded relitigation of the agreement’s validity and that Robinson had not waived arbitration; the case was remanded for an order compelling arbitration.
Issues
| Issue | Briley's Argument | Robinson's Argument | Held |
|---|---|---|---|
| Whether res judicata / collateral estoppel bars relitigation of the arbitration agreement’s validity | Phillips II did not decide Briley’s defenses; he lacked a full and fair opportunity to litigate and negligence claims differed | Phillips II resolved the validity/enforceability of Ms. Briley’s agreement; elements of issue preclusion are met | Collateral estoppel applies; Briley is precluded from relitigating validity/enforceability |
| Whether Briley’s negligence claims fall within the arbitration agreement’s scope | Negligence claims were not the subject of Phillips II and thus may be outside scope | The agreement’s broad language covers "any and all claims," including negligence | Court held negligence claims fall within the arbitrable scope established by Phillips II |
| Whether Robinson waived the right to arbitrate by delay and litigation conduct | Robinson waited >2 years, used court machinery, and prejudiced Briley (delay, expense) | Robinson timely asserted arbitration in its answer, sought transfer pending Phillips II, and moved after the supreme-court mandate | No waiver: litigation history did not show sufficient invocation of the forum or prejudice to bar arbitration |
| Whether the supreme-court ruling was binding despite class members’ limited ability to respond in the prior proceeding | Supreme Court declined some defenses as unpreserved; thus its statements cannot bind Briley on all defenses | Briley was represented, the agreement was part of the Phillips II record, and the determination was essential to that judgment | The Phillips II determination was final and essential and therefore binding under collateral estoppel |
Key Cases Cited
- Robinson Nursing & Rehab. Ctr., LLC v. Phillips, 586 S.W.3d 624 (Ark. 2019) (Arkansas Supreme Court holding many arbitration agreements valid and that covered claims fell within their scope)
- Robinson Nursing & Rehab. Ctr., LLC v. Phillips, 519 S.W.3d 291 (Ark. 2017) (prior Phillips decision addressing class-certification scope)
- Hardy v. Hardy, 380 S.W.3d 354 (Ark. 2011) (elements of claim-preclusion/res judicata)
- Bank of the Ozarks, Inc. v. Walker, 434 S.W.3d 357 (Ark. 2014) (court may refuse to enforce arbitration agreement on general contract defenses)
- Messina v. North Cent. Distrib., Inc., 821 F.3d 1047 (8th Cir. 2016) (waiver analysis where party invokes litigation machinery and prejudice results)
- Diamante v. Dye, 430 S.W.3d 196 (Ark. App. 2013) (Arkansas approach to waiver and arbitration enforcement)
- Kelly v. Golden, 352 F.3d 344 (8th Cir. 2003) (prejudice factors relevant to waiver of arbitration)
- Entergy Ark., Inc. v. Allen, 618 S.W.3d 427 (Ark. App. 2021) (discussion of collateral estoppel elements)