Arbitration & Mediation

Florida Assisted Living Resident Cannot Avoid Arbitration Due to Not Reading or Understanding

By Christopher B. Hopkins, Esq.

In what appears to be a surprisingly weak argument, a plaintiff assisted living facility resident was able to convince a Florida trial judge that she was not bound by arbitration -- despite the Resident and the power of attorney signing the arbitration agreement. The appellate court, however, found that barring coercion or other grounds,the signatures on the agreement created a binding legal contract.

In Rocky Creek Retirement Properties, Inc. d/b/a Rocky Creek Retirement Village et al. v. Estate of Virginia Fox (Villanti, Davis, Morris), the ALF facility initially did not include an arbitration clause in their admission agreement. In 2006, the facility asked residents to sign an arbitration agreement (not voluntary) and gave everyone time to consider and discuss. The subject Resident signed and her daughter/POA signed. There was no indication they discussed the ramifications nor consulted a lawyer before signing.

According to the Opinion, the sole issue was whether there was a valid contract. This was not a case of unconscionability. The Second DCA cited cases from other intermediate district courts which held that a party is bound by a signed contract unless they can prove they were prevented/induced, even when the signor is physically unable to read the agreement or chooses not to. See two cases near to our hearts, given our involvement in them: Consolidated Res. Healthcare v. Fenelus and Etting v. Regents Park.

Lacking such evidence, the trial court was reversed and arbitration ordered.

Full post as published by Florida Arbitration Law on October 12, 2009 (boomark / email).