79 So. 3d 916
Fla. Dist. Ct. App.2012Background
- Kennedy, as personal representative of the Estate of Joseph G. Bush, sued Palm Garden for negligence and wrongful death under Florida law.
- Palm Garden moved to abate and compel arbitration after the admission of Bush.
- Bush signed a 35-page admissions packet containing a one-page arbitration agreement; the packet was reviewed during admission.
- Kennedy attended the signing but did not read the documents, and Bush had macular degeneration and cataracts.
- Admissions director Cheryl Moore testified the packet review took 20–30 minutes and she highlighted terms; Kennedy could not recall reading the arbitration page.
- The trial court denied Palm Garden's motion, finding the arbitration agreement procedurually and substantively unconscionable; Palm Garden appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Procedural unconscionability of the arbitration clause | Bush was unable to read due to illness; no meaningful opportunity to understand terms; lack of explanation | Arbitration clause was reviewed with the packet; not a take-it-or-leave-it; no coercion | Not procedurally unconscionable |
| Substantive unconscionability of the arbitration clause | Arbitration terms were hidden or unfair | Terms were clear and fair; no oppressive terms shown | Not reached because no procedural unconscionability found |
| Trial court's denial of motion to compel arbitration | Court erred in finding unconscionability and denying arbitration | Arbitration should be compelled if agreement valid and unconscionability absent | Reversed and remanded for further proceedings |
Key Cases Cited
- Bland ex. rel. Coker v. Health Care & Ret. Corp. of Am., 927 So.2d 252 (Fla. 2d DCA 2006) (requires both procedural and substantive unconscionability to invalidate arbitration)
- Woebse v. Health Care & Ret. Corp. of Am., 977 So.2d 630 (Fla. 2d DCA 2008) (procedural unconscionability shown where signing party was misled or pressured)
- Weston (Gainesville Health Care Ctr., Inc. v. Weston), 857 So.2d 278 (Fla. 1st DCA 2003) (contract presented without meaningful choice; reviewing for unconscionability)
- Rocky Creek Ret. Prop., Inc. v. Estate of Fox ex rel. Bank of Am., 19 So.3d 1105 (Fla. 2d DCA 2009) (conclusively presumes knowledge of contract contents)
- Hillier Grp., Inc. v. Torcon, Inc., 932 So.2d 449 (Fla. 2d DCA 2006) (triage of arbitration defenses; multifactor test)