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Keywords

lawsuitdefendantdamagesarbitrationnegligencetrialcorporationarbitration clause
damagesarbitrationtrialcorporationarbitration clause

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Alterra Healthcare Corp. v. Estate of Linton ex rel. Graham, 953 So.2d 574, 32 Fla. L. Weekly D574

Facts

Jeanette Linton, an elderly woman suffering from advanced Alzheimer's disease, died after being beaten and raped at Sterling House of Tallahassee, an assisted living facility owned by Alterra Healthcare Corporation. The Estate of Linton filed a lawsuit alleging negligence and violations of the Florida Nursing Home Residents Act. The defendants sought to compel arbitration based on a residency agreement that Linton's son signed, although the estate argued that Linton never signed the agreement and that the agreement was unconscionable and against public policy due to its limitations on damages.

Jeanette Linton, an elderly woman suffering from advanced Alzheimer's disease, died after being beaten and raped at Sterling House of Tallahassee, an assisted living facility owned by Alterra Healthcare Corporation.

Issue

Did the trial court err in compelling arbitration for the claims against Alterra and in determining the enforceability of the damages limitations in the residency agreement?

Did the trial court err in compelling arbitration for the claims against Alterra and in determining the enforceability of the damages limitations in the residency agreement?

Rule

The trial court has the authority to determine the validity of an arbitration clause and whether it is enforceable under public policy, particularly when it includes limitations on statutory remedies.

The trial court has the authority to determine the validity of an arbitration clause and whether it is enforceable under public policy, particularly when it includes limitations on statutory remedies.

Analysis

The appellate court found that the trial court correctly determined that the damages limitations in the residency agreement were void as contrary to public policy, as they undermined the remedial purpose of the Nursing Home Residents Act. The court also ruled that the arbitration clause was binding on the estate and applied to claims against Smith under the respondeat superior doctrine, despite her not being a signatory to the agreement.

The appellate court found that the trial court correctly determined that the damages limitations in the residency agreement were void as contrary to public policy, as they undermined the remedial purpose of the Nursing Home Residents Act.

Conclusion

The appellate court affirmed the trial court's decision to compel arbitration for the claims against Alterra and ruled that the arbitration clause also applied to Smith. However, it reversed the trial court's ruling that the damages limitations were enforceable.

The appellate court affirmed the trial court's decision to compel arbitration for the claims against Alterra and ruled that the arbitration clause also applied to Smith.

Who won?

The Estate of Linton prevailed in part, as the appellate court upheld the trial court's ruling that the damages limitations were unenforceable and that the arbitration clause applied to Smith.

The Estate of Linton prevailed in part, as the appellate court upheld the trial court's ruling that the damages limitations were unenforceable and that the arbitration clause applied to Smith.

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