326 Ga. App. 550
Ga. Ct. App.2014Background
- Sunbridge sought interlocutory review of the trial court's denial to stay proceedings and compel arbitration under FAA.
- Arbitration agreement signed November 24, 2009 by Smith as agent for Emma Wingo, relating to Wingo's admission to Cartersville Heights Care Center.
- Agreement required disputes to be submitted to binding arbitration and referenced the NAF Code of Procedure; parties opted out of certain NAF rules but not application of the Code.
- NAF faced a 2009 consent order by Minnesota authorities prohibiting administration of consumer arbitration, affecting NAF availability.
- Wingo died after ~11 months; Smith and others sued Sunbridge in 2011 for medical malpractice, negligence, wrongful death; Sunbridge moved to stay and compel arbitration.
- Trial court denied the motion; appellate review followed to determine if FAA §5 applies given NAF unavailability.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| FAA applicability when designated arbitral forum is unavailable | Sunbridge argues §5 allows substitution when the forum is unavailable. | Smith contends the forum designation is integral; §5 cannot substitute; arbitration impossible. | Arbitration impossible to enforce; §5 does not apply. |
| Impossibility due to NAF Code/cancellation | NAF cancellation renders arbitration impossible under the agreement. | Agreement could be reformed to continue arbitration with substitute procedures, if allowed. | Agreement deemed impossible to perform; litigation affirmed without addressing other errors. |
Key Cases Cited
- Miller v. GGNSC Atlanta, 323 Ga.App. 114 (Ga. App. 2013) (integral term vs ancillary logistical concern test for FAA forum availability)
- Brown v. ITT Consumer Financial Corp., 211 F.3d 1217 (11th Cir. 2000) ((II)(A)(3)(11th Cir. 2000) framework for forum designation relevance)
- Cash In Advance of Florida, Inc. v. Jolley, 272 Ga. App. 282 (Ga. App. 2005) (FAA §5 applicability when arbitration forum is unavailable)
