2022 Ohio 4711
Ohio Ct. App.2022Background
- Richard Steese was admitted to Canton Regency on Sept. 1, 2017; his daughter Deborah Flowers (POA) signed a Residence & Services Agreement containing an arbitration clause.
- On June 25, 2019, Steese (who has Alzheimer’s) jumped/fell from a second‑story window after experiencing hallucinations; Plaintiffs sued for negligence, medical malpractice, and statutory violations.
- Plaintiffs filed the complaint Dec. 14, 2020; parties exchanged filings, Plaintiffs submitted an affidavit of merit, and the parties attempted private mediation in April 2021 (unsuccessful).
- Defendants served discovery, demanded a jury, sought reinstatement to the active docket, and only moved to stay and compel arbitration on Jan. 19, 2022 (about 13 months after the complaint).
- Trial court granted the stay and ordered arbitration on Mar. 7, 2022; on appeal the Fifth District reversed, holding defendants waived the right to arbitrate based on delay, active participation, and resulting prejudice to Plaintiffs, and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court abused its discretion by staying the case and enforcing arbitration | Steese: Defendants waived arbitration by long delay and active litigation participation, causing prejudice | Defendants: No waiver; delay was reasonable (mediation period), participation was not inconsistent with arbitration rights; strong policy favors arbitration | Reversed: Court found waiver—13‑month delay, active discovery/jury demand, and prejudice to Plaintiffs; trial court abused discretion in compelling arbitration |
| Whether the arbitration clause is unconscionable | Steese: Clause is unconscionable and unenforceable | Defendants: Clause is valid and enforceable | Not reached on merits—issue not ripe because appellate court found arbitration waived |
| Whether the clause violates Medicare regulations | Steese: Clause violates Medicare rules and should be invalid | Defendants: Clause does not violate Medicare regs / not applicable | Not reached—declined as not ripe after finding waiver |
Key Cases Cited
- Blakemore v. Blakemore, 5 Ohio St.3d 217 (1983) (defines "abuse of discretion" standard)
- Harsco Corp. v. Crane Carrier Co., 122 Ohio App.3d 406 (1997) (short delay in seeking arbitration does not automatically establish waiver)