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IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA BROOMALL OPERATING CO. LP : Plaintiff : CIVIL ACTION : v. : NO. 20-2168 : LINDA J. ELDRIDGE : Defendant : NITZA I. QUIĂONES ALEJANDRO, J. AUGUST 31, 2021 MEMORANDUM OPINION INTRODUCTION Before this Court are competing motions, to wit: Defendant Linda J. Eldridgeâs (âDefendantâ or âMrs. Eldridgeâ) motion to dismiss the complaint to compel arbitration, filed pursuant to Federal Rule of Civil Procedure (âRuleâ) 56, [ECF 10], and Plaintiff Broomall Operating Company LPâs (âPlaintiffâ or âBroomallâ) motion to compel arbitration, filed pursuant to the Federal Arbitration Act (âFAAâ), 9 U.S.C. §§ 1â16. [ECF 12]. The issues raised by the parties have been fully briefed and are ripe for disposition.1 For the reasons set forth below, Broomallâs motion to compel arbitration is granted; Mrs. Eldridgeâs motion to dismiss is denied. 1 In adjudicating the underlying motions, this Court has also considered Broomallâs response to Mrs. Eldridgeâs motion to dismiss, [ECF 13], Mrs. Eldridgeâs responses to Broomallâs motion to compel, [ECF 14, 15], and Broomallâs reply to Mrs. Eldridgeâs response in opposition to the motion to compel, [ECF 18]. BACKGROUND Broomall is a limited partnership that provides skilled nursing home and rehabilitation services.2 On behalf of the Estate of Milton Eldridge (âMr. Eldridgeâ) (Plaintiffâs deceased husband), Mrs. Eldridge filed a wrongful death3 and survival4 action against Broomall and thirteen other parties in the Delaware County Court of Common Pleas, alleging, inter alia, nursing home abuse, negligence, and breach of fiduciary duty in Mr. Eldridgeâs nursing home care. On May 5, 2020, Broomall filed (1) preliminary objections to the state action and sought to enforce an alternative dispute resolution and arbitration agreement allegedly entered into by the parties and (2) simultaneously, the underlying action to compel arbitration and to stay the state proceedings. [ECF 1]. On July 10, 2020, Mrs. Eldridge moved to dismiss the complaint pursuant to the Colorado River abstention doctrine and, alternatively, sought allowance for limited discovery related to the agreement underlying Broomallâs complaint. [ECF 4]. This Court denied the motion as related to the abstention doctrine argument and granted Mrs. Eldridgeâs request for limited discovery. [ECF 7]. Thereafter, Broomall filed the instant motion to compel arbitration of all of Mrs. Eldridgeâs claims except for the wrongful death claim.5 [ECF 12 at p. 5]. Mrs. Eldridge opposes the motion 2 For purposes of diversity jurisdiction, Broomall is a citizen of Delaware, Georgia, and Tennessee, and Mrs. Eldridge is a citizen of Pennsylvania. 3 The Wrongful Death Act is codified under 42 Pa. Cons. Stat. § 8301. 4 The Survival Act is codified under 20 Pa. Cons. Stat. § 3371. 5 In her state court complaint, Mrs. Eldridge asserts claims of wrongful death and survival action. The Pennsylvania Superior Court has explained the distinction between survival and wrongful death causes of action as follows: âThe survival action has its genesis in the decedentâs injury, not his death. The recovery of damages stems from the rights of action possessed by the decedent at the time of death. . . . In contrast, wrongful death is not the deceasedâs cause of action. An action for wrongful death may be brought only by specified relatives of the decedent to recover damages on their own behalf, and not as beneficiaries of the estate . . . . This action is designed only to deal with the economic effect of the decedentâs death and argues that the arbitration agreement at issue is unenforceable and unconscionable. [ECF 15]. The facts relevant to the validity and enforceability of the agreement are set forth below:6 On March 17, 2015, Mr. Eldridge executed a power of attorney designating his wife, Mrs. Eldridge, as his agent. The power of attorney granted Mrs. Eldridge the authority to, inter alia, âcommence, prosecute, discontinue or defend all actions or other legal proceedings . . . [and] to settle, compromise, or subject to arbitration any debt, demand or other right or matter due to me concerning my estate as my Agent.â On November 6, 2016, Mrs. Eldridge, along with her two sons, met with representatives of Broomall regarding Mr. Eldridgeâs admission into Broomallâs nursing home care and rehabilitation facility (the âFacilityâ). The meeting lasted approximately twenty minutes. During the meeting, a Broomall representative presented Mrs. Eldridge with various documents and told her that she needed to sign all of the documents before Mr. Eldridge could be admitted to the Facility. Mrs. Eldridge signed an Admission Agreement with Broomall on behalf of Mr. Eldridge and an agreement titled âAgreement for Dispute Resolution Programâ (âDRP Agreementâ), which a Broomall representative also signed. Mrs. Eldridge signed the agreements in her capacity as Mr. Eldridgeâs legal representative pursuant to the previously executed power of attorney. Specifically, the signature page of the DRP Agreement provides: âI am the spouse, responsible party, legal guardian, or power of attorney of the resident and have the authority to sign the agreement on his/her behalf.â Mrs. Eldridge signed her name on the line designated for the signature of a âLegal Representative or Family Member as authorized by State law.â The DRP Agreement defined âpartiesâ as including âthe resident, any and all family members who would have a right to bring a claim in state court on behalf of the resident or the residentâs estate, a legal representative, including a power of attorney . . . .â Under the terms of the DRP Agreement, the signatories agreed to participate in Broomallâs Dispute Resolution Program (âDRPâ), under which certain claims upon the specified family members. Pisano v. Extendicare Homes, Inc., 77 A.3d 651, 658â59 (Pa. Super. Ct. 2013) (quoting Frey v. Pa. Elec. Co., 607 A.2d 796, 798 (Pa. Super. Ct. 1992)). Here, the parties agree that the wrongful death claim against Broomall is not subject to the DRP Agreement since Pennsylvania courts have held that an arbitration agreement signed only by a decedent does not bind the decedentâs wrongful death beneficiaries, and that such claims should be bifurcated from any survival claims subject to arbitration. Taylor v. Extendicare Health Facilities, Inc., 147 A.3d 490, 495 (Pa. 2016); Pisano, 77 A.3d at 660â61. 6 The facts set forth herein are drawn from the amended complaint and the exhibits attached to the partiesâ briefs, including the sworn affidavit of Scott Eldridge, the Eldridgesâ son. For purposes of this motion to compel, this Court will construe the facts and evidence in the light most favorable to the non- movant (here, Mrs. Eldridge). arising from the Admission Agreement or the residentâs stay at or care and services provided by the Facility would be resolved by a three-step process culminating in a decision by an arbitrator. The DRP Agreement provided, in relevant part: AGREEMENT FOR DISPUTE RESOLUTION PROGRAM PLEASE READ CAREFULLY * * * THIS AGREEMENT IS SUBJECT TO ARBITRATION DISPUTES BY AGREEING TO HAVE ALL DISAGREEMENTS RESOLVED THROUGH THE DISPUTE RESOLUTION PROGRAM, THE PARTIES AGREE TO WAIVE THE RIGHT TO A JUDGE OR A JURY TRIAL AND TO HAVE THE DISPUTE RESOLVED THOUGH VARIOUS STEPS, CULMINATING IN A DECISION BY AN ARBITRATOR * * * YOUR PARTICIPATION IN DRP IS VOLUNTARY. BY SIGNING THIS AGREEMENT, YOU AGREE TO PARTICIPATE IN THE PROGRAM. THIS AGREEMENT MAY BE REVOKED BY SENDING A WRITTEN NOTICE OF REVOCATION WITHIN THIRTY (30) DAYS FROM THE DATE OF ADMISSION OR THE DATE ON WHICH THIS AGREEMENT IS SIGNED, WHICHEVER OCCURS LATER. A DECISION TO REVOKE THIS AGREEMENT WILL IN NO WAY ADVERSELY AFFECT THE RESIDENTâS STATUS AT THE FACILITY. WE WILL NOT REFUSE TO ADMIT, ATTEMPT TO DISCHARGE THE RESIDENT OR TAKE ANY OTHER ADVERSE ACTION AGAINST THE RESIDENT BASED ON A REVOCATION OF THE OPPORTUNITY TO PARTICIPATE IN DRP. . . . YOU UNDERSTAND THAT YOU HAVE THE RIGHT TO CONSULT WITH AN ATTORNEY OF YOUR CHOICE. The above text appeared on the first page of the DRP Agreement. The DRP Agreement also provided that, as part of the Dispute Resolution Program, âthe Facility will pay for ninety percent (90%) of the fees for mediation and arbitration and [the resident] will pay for the remaining ten percent (10%).â According to the DRP Agreementâs terms, electing to participate in the Dispute Resolution Program was voluntary and not a prerequisite for Mr. Eldridgeâs admission to or continued care at the Facility. Mr. Eldridge resided at the Facility from the day of admission (November 6, 2016) until January 30, 2018, except for the times when he was hospitalized. Mrs. Eldridge alleges that during his residency, Mr. Eldridge suffered numerous injuries, including âdevelopment and deterioration of multiple pressure ulcers, infection, severe sepsis, septic shock, UTI, malnutrition, dehydration, poor hygiene, loss of dignity, disfigurement, severe pain and ultimately death.â LEGAL STANDARD When addressing a motion to compel arbitration, this Court must first determine which standard of review to apply: either the motion to dismiss standard under Rule 12 or the motion for summary judgment standard under Rule 56. Guidotti v. Legal Helpers Debt Resolution, LLC., 716 F.3d 764, 771â72 (3d Cir. 2013). âWhere the affirmative defense of arbitrability of claims is apparent on the face of a complaint (or documents relied upon in the complaint), the FAA would favor resolving a motion to compel arbitration under a motion to dismiss standard without the inherent delay of discovery.â Id. at 773â74 (internal citations omitted). Where arbitrability is not apparent on the face of the complaint, âthe issue should be judged under the Rule 56 standard.â Id. Furthermore, where the validity and enforceability of an arbitration agreement is at issue, a court should evaluate the issue under the Rule 56 standard. See Par-Knit Mills, Inc. v. Stockbridge Fabrics Co. Ltd., 636 F.2d 51, 54 (3d Cir. 1980). Here, arbitrability is not apparent on the face of the amended complaint, and Mrs. Eldridge challenges the validity and enforceability of the DRP Agreement. In addition, by Order dated October 22, 2020, this Court allowed limited discovery on the arbitration agreement. [See ECF 7]. Under the circumstances noted, this Court will apply the Rule 56 summary judgment standard in determining the DRP Agreementâs validity and enforceability.7 When applying the Rule 56 standard to a motion to compel arbitration, a court shall grant the motion when âthe movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.â Fed. R. Civ. P. 56(a); see also Celotex Corp. v. Catrett, 477 U.S. 317 (1986). A fact is âmaterialâ if its existence or non-existence may affect the outcome of litigation, and a dispute is âgenuineâ if âthe evidence is such that a reasonable jury could return a verdict for the nonmoving party.â Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). In applying the Rule 56 standard, âthe court must draw all reasonable inferences in favor of the nonmoving partyâ (here, Mrs. Eldridge). See Guidotti, 716 F.3d at 772. The moving party has the burden of demonstrating âthe absence of a genuine issue of material factâ by showing that the non-moving party âfail[ed] to make a showing sufficient to establish the existence of an element essential to that partyâs case.â Celotex, 477 U.S. at 322â23. The non-moving party must then rebut the claim by âciting to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations . . . , admissions, interrogatory answers, or other materials.â Fed. R. Civ. P. 56(c)(1)(A)â(B). The non-moving party must show more than âsome metaphysical doubt as to the material facts;â rather, the non-moving party must âgo beyond the pleadingsâ and âshow that there is a genuine issue for trial.â Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 476 U.S. 574, 586 (1986); see also Celotex, 477 U.S. at 324. 7 In their respective pleadings, both parties agree that the motion to compel arbitration should be judged under the Rule 56 standard. As noted, the parties have participated in limited discovery related to the arbitration agreement at issue, and no additional discovery is necessary. DISCUSSION Broomall moves to compel arbitration of all the claims brought by Mrs. Eldridge in the state court action on behalf of her husbandâs estate based on the DRP Agreement. In opposing the motion, Mrs. Eldridge argues that (1) there was no âmeeting of the mindsâ among the parties and, thus, no enforceable contract was formed, and (2) the DRP Agreement is procedurally and substantively unconscionable.8 In light of the undisputed record evidence, Mrs. Eldridgeâs arguments are without merit. The FAA âestablishes a strong federal policy in favor of compelling arbitration over litigation.â Sandvik AB v. Advent Intâl Corp., 220 F.3d 99, 104 (3d Cir. 2000). Section 2, the primary substantive provision of the FAA, provides that a written agreement to arbitrate âshall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract.â Moses H. Cone Memâl Hosp. v. Mercury Constr. Corp., 460 U.S. 1, 24 (1983) (citing 9 U.S.C. § 2). This provision âreflects the fundamental principle that arbitration is a matter of contract.â Rent-A-Center, West, Inc. v. Jackson, 561 U.S. 63, 67 (2010). Section 2 âplaces arbitration agreements on an equal footing with other contracts and requires courts to enforce them according to their terms.â Id. (internal citations omitted). Under the FAA: A party aggrieved by the alleged failure, neglect, or refusal of another to arbitrate under a written agreement for arbitration may petition any United States district 8 In addition to these two arguments, Mrs. Eldridge also contends that her waiver of her husbandâs right to a jury trial protected by the Seventh Amendment to the United States Constitution was not knowing, intelligent, and voluntary, as required by First Union Natâl Bank v. United States, 164 F. Supp. 2d 660, 663 (E.D. Pa. 2001). However, the United States Court of Appeals for the Third Circuit has held that the heightened âknowing and voluntaryâ standard under the Seventh Amendment is inconsistent with the FAA and does not apply to arbitration agreements governed by the statute. Morales v. Sun Constructors, Inc., 541 F.3d 218, 224 (3d Cir. 2008); Seus v. John Nuveen & Co., Inc., 146 F.3d 175 (3d Cir. 1998), overruled on other grounds by Green Tree Fin. Corp. Ala. v. Randolph, 531 U.S. 79 (2000). Accordingly, because this Court finds that the FAA applies to the DRP Agreement here, it will not address this argument by Mrs. Eldridge. court which, save for such agreement, would have jurisdiction under Title 28, in a civil action or in admiralty of the subject matter of a suit arising out of the controversy between the parties, for an order directing that such arbitration proceed in the manner provided for in such agreement. 9 U.S.C. § 4. âThe court shall hear the parties, and upon being satisfied that the making of the agreement for arbitration or the failure to comply therewith is not in issue, the court shall make an order directing the parties to proceed to arbitration in accordance with the terms of the agreement.â Id. In so doing, the court âmust resolve âany doubts concerning the scope of arbitrable issues . . . in favor of arbitration.ââ CardioNet, Inc. v. Cigna Health Corp., 751 F.3d 165, 172 (3d Cir. 2014) (quoting Moses H. Cone Memâl Hosp., 460 U.S. at 24â25). If the court determines that the case must be arbitrated, it âshall on application of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement, providing the applicant for the stay is not in default in proceeding with such arbitration.â 9 U.S.C. § 3. Therefore, before compelling arbitration, a court must determine (1) whether a valid agreement to arbitrate exists, and (2) whether the particular dispute falls within the scope of that agreement. Trippe Mfg. Co. v. Niles Audio Corp., 401 F.3d 529, 532 (3d Cir. 2005). Throughout the inquiry, there is a presumption in favor of arbitrability. Id. Here, the parties agree that all but Mrs. Eldridgeâs claim for wrongful death fall within the scope of the DRP Agreement. The parties disagree, however, as to whether a valid agreement to arbitrate exists. In determining whether a valid arbitration agreement exists, courts look to ordinary state law principles of contract formation. Kirleis v. Dickie, McCamey & Chilcote, P.C., 560 F.3d 156, 160 (3d Cir. 2009). Under Pennsylvania law, âa contract is formed when there is an offer, an acceptance of that offer and an exchange of consideration.â Yocca v. Pittsburgh Steelers Sports, Inc., 854 A.2d 425, 434 n.21 (Pa. 2004). Formation of the DRP Agreement âUnder Pennsylvania law, a valid contract requires that: (1) both parties must manifest an intention to be bound by the agreement; (2) the terms of the agreement must be sufficiently definite; and (3) there must be consideration.â Hudyka v. Sunoco, Inc., 474 F. Supp. 2d 712, 716 (E.D. Pa. 2007) (citing Blair v. Scott Specialty Gases, 283 F.3d 595, 603 (3d Cir. 2002)). The party asserting the existence of the valid contract bears the burden of establishing the elements of the contract formation, consisting of an offer, acceptance, consideration, and a mutual meeting of the minds. First Options of Chi., Inc. v. Kaplan, 514 U.S. 938 (1995). Agreements to arbitrate may only be upheld when it is clear the parties âagreed to arbitrate in clear and unmistakable manner.â Quiles v. Fin. Exch. Co., 879 A.2d 281, 287 (Pa. Super. Ct. 2005) (quoting Emmaus Mun. Augh. v. Eltz, 204 A.2d 926 (Pa. 1964)). Mrs. Eldridge argues that the DRP Agreement is an unenforceable contract because there was no âmeeting of the mindsâ or mutual assent among the parties, nor is there âa scintilla of evidence that the parties agreed to arbitrate in a âclear and unmistakable manner.ââ [Defâs. Resp., ECF 15 at p. 11]. In support of this argument, Mrs. Eldridge relies on Quiles. This reliance, however, is misguided, as the facts of the instant case and Quiles are quite different. In Quiles, an employee alleged that her supervisor pressured her into signing an arbitration agreement by telling her to âjust âfâ sign that because Iâm going to get in trouble.â Id. at 287. The employee in Quiles had only a basic command of the English language, had not received a high school diploma, and was not familiar with the term or concept of arbitration. Id. at 284, 287. Though Mrs. Eldridge was evidently stressed when admitting her husband into the nursing home and contends that she did not read the DRP Agreement before she signed it, she had thirty days thereafter to opt out of the agreement without consequences. Further, there is no indication that Mrs. Eldridge lacked the ability to understand the Agreement. Mrs. Eldridge further argues the requisite meeting of the minds did not occur because the essential terms of the DRP Agreement were neither discussed nor mentioned during the admission process. She contends that she did not read the DRP Agreement before signing it, alleging that she was given no opportunity to review it and that Broomallâs representatives ârushed [her] through the process.â [Aff. of Scott Eldridge, Ex. A, ECF 15-1 at p. 3]. She further contends that Broomallâs representatives never mentioned the words âArbitration,â âArbitration Agreement,â âDispute Resolution Program,â or âMediationâ during the twenty-minute meeting. [Id.]. âFor a contract to be enforceable, the nature and extent of the mutual obligations must be certain, and the parties must have agreed on the material and necessary details of their bargain.â Lackner v. Glosser, 892 A.2d 21, 30 (Pa. Super. Ct. 2006). âWithout knowing the terms of the contract, one cannot accept them.â Hudyka, 474 F. Supp. 2d at 716â17. Here, by contrast, the DRP Agreement contained conspicuous, bold language detailing the arbitration terms and explaining that opting into the program was not a condition of Mr. Eldridgeâs admission to the Facility: âTHIS AGREEMENT IS SUBJECT TO ARBITRATION DISPUTES . . . . BY AGREEING TO HAVE ALL DISAGREEMENTS RESOLVED THROUGH THE DISPUTE RESOLUTION PROGRAM, THE PARTIES AGREE TO WAIVE THE RIGHT TO A JUDGE OR A JURY TRIAL . . . . YOUR PARTICIPATION IN DRP IS VOLUNTARY.â [DRP Agreement, Ex. 2, ECF 12-4 at p. 1]. Furthermore, as Broomall argues, Mrs. Eldridgeâs failure to read the DRP Agreement, whose terms were definite and conspicuous, is not sufficient to establish a lack of mutual assent. Pennsylvania courts have unwaveringly held that failure to read a contract is not a defense to its enforcement. Standard Venetian Blind Co. v. Am. Empire Ins. Co., 469 A.2d 563, 566 (Pa. 1983); In re Olsonâs Est., 291 A.2d 95, 98 (Pa. 1972) (â[I]n the absence of proof of fraud, âfailure to read is an unavailing excuse or defense and cannot justify an avoidance, modification or nullification of the contract or any provision thereof.ââ (citations omitted)); Schillachi v. Flying Dutchman Motorcycle Club, 751 F. Supp. 1169, 1175 (E.D. Pa. 1990) (âOne who is about to sign a contract has a duty to read that contract first.â). In Clouser v. Golden Gate Natâl Senior Care, LLC, a case with a remarkably similar factual background to the instant case, the court rejected the argument that an arbitration agreement was unenforceable because the plaintiff did not read the agreement, as the agreement contained sufficiently definite terms and was supported by consideration, i.e., the agreement by the parties to be bound to arbitrate. 2016 WL 1179214, at *5â6 (W.D. Pa. Mar. 23, 2016). In sum, this Court finds that Broomall has met its burden in demonstrating the DRP Agreement was executed in accordance with the principles of contract formation under Pennsylvania law. Given its conspicuous language and the lack of any evidence suggesting Mrs. Eldridge was incapable of understanding it, the DRP Agreement is a validly formed contract. Unconscionability Mrs. Eldridge also argues the DRP Agreement is unenforceable because it is unconscionable under Pennsylvania contract law. For a contract to be unconscionable, it must be both procedurally and substantively unconscionable. Gay v. CreditInform, 511 F.3d 369, 392 (3d Cir. 2008). âUnder Pennsylvania law, the test for unconscionability is whether one of the parties lacked a meaningful choice about whether to accept the provision [or contract] in question and the challenged provision or contract unreasonably favor[s] the other party to the contract.â Zumpano v. Omnipoint Commcâns, Inc., 2001 WL 43781, at *5 (E.D. Pa. Jan. 18, 2001) (addition in original). In analyzing these two prongs, the Third Circuit recognizes the Pennsylvania Supreme Courtâs use of a âsliding-scale approach,â so that âwhere the procedural unconscionability is very high, a lesser degree of substantive unconscionability may be required,â and vice-versa. Quilloin v. Tenet HealthSystem Phila., Inc., 673 F.3d 221, 230 (3d Cir. 2012) (citing Salley v. Option One Mortg. Corp., 925 A.2d 115, 125 n.12 (Pa. 2007)). Procedural unconscionability concerns the process by which the parties entered into the contract. The Pennsylvania Supreme Court has defined it as the âabsence of meaningful choice on the part of one of the parties.â Witmer v. Exxon Corp., 434 A.2d 1222, 1228 (Pa. 1981). Mrs. Eldridge argues that the DRP Agreement is procedurally unconscionable for three reasons: (1) she was not aware of the presence of the DRP Agreement within the admission paperwork, (2) she was explicitly told by Broomallâs personnel that all paperwork âhad to be signedâ for her husband to be admitted and receive care, and (3) there was â[n]othing even remotely resembling [a] discussionâ regarding arbitration before she signed the form.9 [Defâs. Resp., ECF 15 at p. 17]. Mrs. Eldridgeâs argument is unpersuasive. As noted, the failure to read a contract is not a defense to its enforcement. Caparra v. Maggianoâs Inc., 2015 WL 5144030, at *6 (E.D. Pa. Sept. 1, 2015) (âUnder Pennsylvania law, â[c]ontracting parties are normally bound by their agreements, without regard to whether the terms 9 Mrs. Eldridge cites Phoenix Baptist Hosp. & Med. Ctr., Inc., v. Aiken, 877 P.2d 1345, 1349 (Ariz. Ct. App. 1994), wherein the Arizona Court of Appeals considered the fact that the plaintiff âhurriedly signed the preprinted agreementâ in order to obtain medical care for his wife in finding the agreement was procedurally unconscionable. The court emphasized the fact that the agreement was signed during an âemergency medical crisis,â holding that âgiven these circumstances, the trier of fact could conclude either that [the respondent] did not understand the implications of the agreement, or that he felt he had no choice but to immediately sign the preprinted form.â Id. While Scott Eldridge explains that admitting Mr. Eldridge to the Facility was âan extremely stressful and emotional timeâ for his family, [Aff. of Scott Eldridge, Ex. A, ECF 15-1 at p. 3], there is no evidence suggesting Mr. Eldridgeâs situation was analogous to that of the hospital patient in Phoenix Baptist. Furthermore, this Court must apply Pennsylvania law, which does not support a finding of procedural unconscionability, to the instant motion. thereof were read and fully understood and irrespective of whether the agreements embodied reasonable or good bargains.ââ) (quoting Simeone v. Simeone, 581 A.2d 162, 165 (Pa. 1990)). Mrs. Eldridge concedes that she did not read the DRP Agreement before signing it but argues that Broomallâs representative did not explain the agreement to her nor mention anything about arbitration. Mrs. Eldridgeâs son recalls that admitting Mr. Eldridge to the Facility was âan extremely stressful and emotional timeâ for the whole family and that he, his brother, and Mrs. Eldridge âtrusted the Facility[] personnelâs representation that all presented documents were required to be signedâ prior to Mr. Eldridgeâs admission. [Aff. of Scott Eldridge, Ex. A, ECF 15- 1 at p. 3]. He âdistinctly recall[s]â the Facilityâs representative telling Mrs. Eldridge that she âhad to sign all of the presented documentsâ and recalls that the documents were not described, discussed, or explained to the family. [Id. at p. 2] (emphasis in original). One Facility representative told the family, â[D]onât worry, your father is in good hands.â [Id. at p. 3]. This argument is unconvincing and, further, has been rejected by other courts. See, e.g., Clouser, 2016 WL 1179214, at *6 (âPlaintiffâs argument that Ms. McCoy did not explain these terms to her and that she did not read the ADR Agreement is unpersuasive.â); Patel v. Am. Safety Indem. Co., 2016 WL 520994 (W.D. Pa. Feb. 10, 2016) (explaining that the plaintiff was âexpected to have read the contract as any failure to read the contract is an unavailing excuseâ). In the nursing home context, Pennsylvania courts have similarly rejected arguments that arbitration agreements were unenforceable simply because the signatories did not read them. See, e.g., Garcia v. HCR ManorCare, LLC, 2016 WL 127514 (Pa. Super. Ct. Jan. 12, 2016) (explaining that â[e]ven if Husband, as the trial court suggests, did not read the Agreement because he âsimply took [the admissionâs staff] word about what he was supposed to sign . . . and had just agreed to sign whatever document had been placed before him[,]ââ such an argument would not afford the husband relief); Skywark v. Healthbridge Mgmt., LLC, 2015 WL 13621062 (W.D. Pa. Sept. 25, 2015) (rejecting plaintiffâs argument that she was not afforded an opportunity by admissions staff to review the subject arbitration agreement). Here, the phrases âARBITRATION,â âDISPUTE RESOLUTION PROGRAM,â and âTHE PARTIES AGREE TO WAIVE THE RIGHT TO A JUDGE OR JURY TRIALâ appear clearly and conspicuously, in bold print, on the first page of the DRP Agreement. [DRP Agreement, Ex. 2, ECF 12-4 at p. 1]; see Glover ex rel. Glover v. Darway Elder Care Rehab. Ctr., 2014 WL 931459, at *9 (M.D. Pa. Feb. 4, 2014), report and recommendation adopted, 2014 WL 931470 (M.D. Pa. Mar. 10, 2014) (â[A]ny subjective feelings that the plaintiff now claims that Audrey Glover felt when signing a voluntary agreementâeven assuming they were truly feltâare sharply undercut by the plain, and even emphasized language of the agreement itself.â). Therefore, the DRP Agreement is not procedurally unconscionable on the grounds that Mrs. Eldridge did not read it. Mrs. Eldridge also argues the DRP Agreement is procedurally unconscionable because it is a contract of adhesion. Procedural unconscionability is generally found in contracts of adhesion. Alexander v. Anthony Intâl, L.P., 341 F.3d 256, 265 (3d Cir. 2003); McNulty v. H & R Block, Inc., 843 A.2d 1267, 1273 n.6 (Pa. Super. Ct. 2004). A contract of adhesion is one prepared by a party with excessive bargaining power and presented to the other party on a âtake-it-or-leave-itâ basis. See Parilla v. IAP Worldwide Servs., VI, Inc., 368 F.3d 269, 276 (3d Cir. 2004); Ostroff v. Alterra Healthcare Corp., 433 F. Supp. 2d 538 (E.D. Pa. 2006). The touchstone of the analysis is whether the party challenging the agreement had any meaningful choice regarding acceptance of its provisions. Thibodeau v. Comcast Corp., 912 A.2d 874, 886 (Pa. Super. Ct. 2006); see also Hopkins v. NewDay Fin., LLC, 2008 WL 2654635, at *2 (E.D. Pa. June 30, 2008). Here, Mrs. Eldridge is incorrect in classifying the DRP Agreement as a contract of adhesion. Critically, the DRP Agreement was voluntary and not a condition of Mr. Eldridgeâs admission to the Facility. It also left open the opportunity for Mrs. Eldridge to revoke the agreement within thirty days after signing with no adverse impact on Mr. Eldridge and his care. See Golden Gate Natâl Senior Care, LLC v. Beavens, 123 F. Supp. 3d 619, 632 (E.D. Pa. 2015) (finding no procedural unconscionability where the signatory had the ability to revoke the arbitration agreement within thirty days of execution). The DRP Agreement, like the agreement in Beavens, contains a revocation clause on the first page: âYOUR PARTICIPATION IN DRP IS VOLUNTARY. . . . THIS AGREEMENT MAY BE REVOKED WITHIN THIRTY (30) DAYS . . . . A DECISION TO REVOKE THIS AGREEMENT WILL IN NO WAY ADVERSELY AFFECT THE RESIDENTâS STATUS AT THE FACILITY.â [DRP Agreement, Ex. 2, ECF 12- 4 at p. 1]. Here, Mrs. Eldridge was not deprived of a meaningful choice regarding her options to elect or decline to participate in DRP. As such, the DRP Agreement is not a contract of adhesion and, therefore, is not procedurally unconscionable. Because this Court has concluded the DRP Agreement is not procedurally unconscionable, it need not determine whether it is substantively unconscionable. See Zimmer v. CooperNeff Advisors, Inc., 523 F.3d 224, 230 (3d Cir. 2008) (âBecause we have concluded that the arbitration agreement here was not procedurally unconscionable and reverse on that basis, we need not decide whether the District Courtâs decision as to substantive unconscionability was correct.â). The DRP Agreement is, therefore, a valid and enforceable contract. Enforceability Against Mrs. Eldridge Having determined that the DRP Agreement is a valid and enforceable contract, this Court must now address whether Mrs. Eldridge is bound by its terms. Broomall contends that Mrs. Eldridge, as the Administratrix of Mr. Eldridgeâs Estate, is bound because she signed the contract on Mr. Eldridgeâs behalf. Courts have repeatedly compelled arbitration of claims on behalf of a decedent when the decedentâs family member, acting under power of attorney, signed an arbitration agreement and later brought claims against the nursing home on behalf of the decedent. See, e.g., Beavens, 123 F. Supp. 3d 619; Golden Gate Natâl Senior Care, LLC v. Sulpizio, 2016 WL 1271333 (M.D. Pa. 2016). There is no dispute that Mrs. Eldridge signed various agreements, including the DRP Agreement, pursuant to Mr. Eldridgeâs power of attorney, which gave her the authority to, inter alia, âcommence, prosecute, discontinue or defend all actions or other legal proceedings . . . [and] to settle, compromise, or subject to arbitration any debt, demand or other right or matter due to me concerning my estate as my Agent.â [Power of Attorney, Ex. 3, ECF 12-5 at p. 4] (emphasis added). The signature page of the DRP Agreement indicates, âI am the spouse, responsible party, legal guardian, or power of attorney of the resident and have the authority to sign the agreement on his/her behalf.â [DRP Agreement, Ex. 2, ECF 12-4 at p. 7] (emphasis added). Mrs. Eldridge signed her name on the line designated for the signature of a âLegal Representative or Family Member as authorized by State law.â [Id.]. Furthermore, the DRP Agreement defines âpartiesâ as including âthe resident, any and all family members who would have a right to bring a claim in state court on behalf of the resident or the residentâs estate, a legal representative, including a power of attorney . . . .â [Id. at p. 2]. Having signed the agreement as Mr. Eldridgeâs agent pursuant to the power of attorney, Mrs. Eldridge is bound as the Administratrix of Mr. Eldridgeâs Estate to arbitrate claims brought on his behalf.10 10 Broomall also argues Mrs. Eldridge is bound by the DRP Agreement under the doctrines of third- party beneficiary and equitable estoppel. Because this Court finds that Mr. Eldridge was a party to the CONCLUSION For the foregoing reasons, Broomallâs motion to compel arbitration of Mrs. Eldridgeâs survival claims on behalf of her husband is granted, and Mrs. Eldridgeâs motion to dismiss is denied. An Order consistent with this Memorandum Opinion follows. NITZA I. QUIĂONES ALEJANDRO, J. Agreement executed by Mrs. Eldridge as his agent, and thus that the Agreement binds Mrs. Eldridge as the Administratrix of his estate, this Court need not resolve Broomallâs additional arguments.
Case Information
- Court
- E.D. Pa.
- Decision Date
- August 31, 2021
- Status
- Precedential