Kohlman v. Grane Healthcare Co.

279 A.3d 42

Debra KOHLMAN, Administratrix of the Estate of Fay A. Vincent, Deceased

v.GRANE HEALTHCARE COMPANY; Highland Park Care Center, LLC d/b/a Highland Park Care Center; Grane Associates, LP; Grane Associates, Inc.; Grane Properties, Inc.; Trebo, Inc.; Highland Park Properties, LLC; University of Pittsburgh Medical Center a/k/a UPMC; UPMC Presbyterian Shadyside; UPMS Shadyside Hospital

Appeal of: Grane Healthcare Company; Highland Park Care Center, LLC d/b/a Highland Park Care Center; Grane Associates, LP; Grane Associates, Inc.; Grane Properties, Inc.; Trebo, Inc.; Highland Park Properties, LLC

No. 103 WDA 2021

Superior Court of Pennsylvania.

Argued November 10, 2021

Filed: July 5, 2022

Richard T. Victoria, Pittsburgh, for appellants.

Janet K. Meub, Pittsburgh, for University of Pittsburgh Medical Center, UPMC Presbyterian Shadyside, appellees.

Kristin E. Hoffman, Pittsburgh, for Kohlman, appellee.

BEFORE: KUNSELMAN, J., KING, J., and COLINS, J.^*

MEMORANDUM BY COLINS, J.:

Highland Park Care Center, LLC, d/b/a Highland Park Care Center (Highland Park), Grane Healthcare Company, Grane Associates, LP, Grane Associates, Inc., Grane Properties, Inc., Trebro, Inc., and Highland Park Properties, LLC (collectively, the Highland Park Defendants) appeal from the order of the Court of Common Pleas of Allegheny County (trial court) overruling their preliminary objection that sought to compel arbitration of claims asserted against them by Debra Kohlman (Plaintiff), Administratrix of the Estate of Fay A. Vincent (Decedent). For the reasons set forth below, we affirm.

This action arises out of Decedent's 2017 admission to and stay at Highland Park, a skilled nursing home facility in Pittsburgh. On January 30, 2017, Decedent was discharged from a Pittsburgh hospital and was admitted to Highland Park for care and rehabilitation. Highland Park Progress Notes, 1/30/17-1/31/17. At the time of her admission, Decedent was 67 years old and was suffering from a number of conditions, including congestive heart failure, diabetes, and pressure ulcers. Kohlman v. Grane Healthcare Co. (Kohlman I) , 228 A.3d 920, 921 & n.1 (Pa. Super. 2020) ; Highland Park Resident Assessment and Care Screening at 22-31. Highland Park's assessment of Decedent's condition at the time of her admission reported that she was alert and oriented and had no memory problems or dementia, but that she was also suffering from anxiety and sometimes had trouble concentrating. Highland Park Resident Assessment and Care Screening at 7-10, 22-23. Highland Park's assessment also reported that Decedent's vision was impaired to the point that even with glasses, she was "not able to see newspaper headlines but can identify objects" and listed as one of her diagnoses "[b]lindness, both eyes." Id. at 6, 23. Highland Park's assessment reported that Decedent expressed that it was very important to her to have her family or a close friend involved in discussions about her care. Id. at 13.

In connection with her admission to Highland Park, Decedent signed a number of documents, including a seven-page Nursing Services Agreement, a two-page Agreement to Arbitrate Disputes (the Arbitration Agreement), and a Resident Representative Agreement concerning the handling of her finances, in which Decedent designated herself as her representative. Highland Park Resident Admission Package. The Arbitration Agreement provided:

PLEASE READ CAREFULLY, YOU ARE GIVING UP YOUR RIGHT TO SUE [HIGHLAND PARK] IN COURT

Resident and [Highland Park] agree that all matters in dispute between Resident and [Highland Park], its agents, servants, employees, officers, contractors and affiliates (hereinafter "the parties"), including but not limited to claims for personal injuries or any controversy or claim between the parties arising out of or relating to the agreement for admission and for the provision of nursing facility services, whether by virtue of contract, tort or otherwise, including the scope of this arbitration agreement and the arbitrability of any claim or dispute shall be resolved exclusively by binding arbitration. Such arbitration shall be conducted in the county in which [Highland Park] is located and in accordance with the terms of this Agreement and the Pennsylvania Uniform Arbitration Act, and judgment on the award rendered by the arbitrator may be entered in any court having jurisdiction thereof.

To the extent the parties can agree upon a single, neutral arbitrator, that single arbitrator shall hear and decide the controversy. To the extent the parties cannot agree on a single arbitrator, any party may request one to be appointed by the court. The parties shall be entitled to limited discovery, the manner and scope of which shall be governed by the arbitrator.

The parties agree that any administrative fees and costs, including the fees of the arbitrator, shall be split equally between the parties, and that each party shall be responsible for their own attorneys’ fees.

In the event a court having jurisdiction finds any portion of this agreement unenforceable, then that portion shall not be effective and the remainder of the agreement shall remain effective.

Resident retains all rights under federal and state law to file grievances with or to complain to authorities or advocacy groups concerning care and treatment

This agreement binds all persons whose claims may arise out of or relate to treatment or service provided by [Highland Park] or whose claim is derived through or on behalf of the Resident including any spouse, parent, sibling, child, guardian, executor, legal representative, administrator, heir, or survivor of the Resident, as well as anyone entitled to bring a wrongful death claim relating to the Resident. This agreement applies to [Highland Park's] agents, servants, employees, officers, contractors and affiliates.

The parties understand that as a result of this arbitration agreement, any claims that the parties may have against the other cannot be brought as a lawsuit in court before a judge or jury, and agree that all such claims will be resolved as described in this agreement.

Resident understands that he/she has the right to consult legal counsel concerning this arbitration agreement; that execution of this arbitration agreement is not a condition of admission or to the furnishing of services to Resident by [Highland Park]; and that this arbitration agreement may be rescinded by written notice delivered to [Highland Park] within ten (10) days of signature. If not rescinded within ten (10) days, this agreement shall remain in effect for all subsequent stays at [Highland Park], even if Resident is discharged and readmitted to [Highland Park].

The undersigned certifies that he/she has read this arbitration agreement and that it has been fully explained to him/her, that he/she understands its contents, and that he/she is the Resident or a person duly authorized by the Resident or otherwise to execute this agreement and accept its terms.

Arbitration Agreement, 2/1/17 (emphasis in original). Decedent and Highland Park's admissions director both signed the Arbitration Agreement and the admissions director printed their names and dated it. Id. at 2; Blasco Dep. at 10, 32-33, 44, 54.

Decedent died approximately three months after she was admitted to Highland Park. Kohlman I , 228 A.3d at 922. On August 27, 2018, Plaintiff, who is Decedent's daughter, filed this negligence action against the Highland Park Defendants, a hospital that had treated her, and the hospital's affiliates asserting survival and wrongful death claims. The Highland Park Defendants filed preliminary objections that sought, inter alia , to compel arbitration of Plaintiff's claims. By order entered on January 8, 2019, the trial court denied Highland Park Defendants’ preliminary objection to compel arbitration. The Highland Park Defendants appealed this order and the trial court issued an opinion in which it concluded that the Arbitration Agreement could not bind wrongful death claimants and that arbitration of the survival claims could not be required because the Arbitration Agreement was unconscionable. Trial Court Opinion, 3/13/19, at 2-4. The trial court based its conclusion that the Arbitration Agreement was unconscionable on Decedent's condition when she signed it coupled with the requirement that she pay half of the costs of arbitration, which the trial court characterized as an "overreach." Id. at 4.

On February 10, 2020, this Court affirmed the denial of arbitration with respect to the wrongful death claim, but held with respect to the survival claims that the record was inadequate to determine whether the Arbitration Agreement was unconscionable. Kohlman I , 228 A.3d at 926-27. This Court accordingly vacated the trial court's denial of arbitration with respect to the survival claims and remanded the case for discovery and further proceedings to address, inter alia , the following:

• [D]ecedent's physical and mental state at the time that she executed the Arbitration Agreement;

• whether [D]ecedent was accompanied by anyone at this time;

• the nature of the admission agreement that [D]ecedent executed (and whether the Arbitration Agreement was part of, or buried within, a potentially lengthy admissions packet that [D]ecedent was required to complete, while in ill health); • whether the Hospital sent the ill [D]ecedent directly to Highland Park upon her discharge from the Hospital;

• whether [D]ecedent was aware that she could receive treatment from other skilled nursing care facilities, and whether she had the ability to research other options;

• whether [D]ecedent was economically constrained to enter into an agreement with Highland Park to provide her care (and relatedly, whether she had the means to pay for arbitration).

Id. at 927 (footnote omitted).

On remand, the parties took discovery on these issues and, following further briefing and submission of evidence from that discovery, the trial court reaffirmed its conclusion...