Kohlman, D. v. Grane Healthcare Co. ( 2022 )


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  • J-A25034-21
    
    2022 PA Super 118
    DEBRA KOHLMAN, ADMINISTRATRIX              :   IN THE SUPERIOR COURT OF
    OF THE ESTATE OF FAY A. VINCENT,           :        PENNSYLVANIA
    DECEASED                                   :
    :
    :
    v.                             :
    :
    :
    GRANE HEALTHCARE COMPANY;                  :   No. 103 WDA 2021
    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                                        :
    Appeal from the Order Entered November 30, 2020
    In the Court of Common Pleas of Allegheny County Civil Division at
    No(s): GD 18-010949
    BEFORE:      KUNSELMAN, J., KING, J., and COLINS, J.*
    MEMORANDUM BY COLINS, J.:                                FILED: JULY 5, 2022
    Highland Park Care Center, LLC, d/b/a Highland Park Care Center
    (Highland Park), Grane Healthcare Company, Grane Associates, LP, Grane
    ____________________________________________
    *   Retired Senior Judge assigned to the Superior Court.
    J-A25034-21
    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
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    J-A25034-21
    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
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    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
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    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.
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    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 that the Arbitration Agreement was unconscionable
    and again overruled the Highland Park Defendants’ preliminary objection to
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    compel arbitration.     Trial Court Order, 11/30/20; Trial Court Opinion,
    11/30/20, at 6. With respect to the specific issues raised by this Court, the
    trial court found that Decedent was not incompetent, but was not well and
    was in severe pain and medicated at the time that she signed the Arbitration
    Agreement. Id. at 4. The trial court found that Decedent was alone when
    she was asked to sign the Arbitration Agreement, that Decedent was not given
    a chance to read the Arbitration Agreement and other admission documents
    before signing, that Decedent was not given a copy of the Arbitration
    Agreement after she signed, even though it permitted her to rescind within
    ten days, and that the admissions director did not read or explain to Decedent
    all of Arbitration Agreement’s provisions. Id. at 4-5. The trial court also found
    that Decedent was transferred directly from the hospital to Highland Park and
    that it was more likely than not that she did not have awareness of ability to
    research other nursing care options and concluded that Decedent’s financial
    condition   was   irrelevant   to   whether   the   Arbitration   Agreement   was
    unconscionable. Id. at 5.
    The Highland Park Defendants again timely appealed the trial court’s
    denial of arbitration. Although the trial court’s order is not a final order, we
    have jurisdiction over this appeal because an order overruling preliminary
    objections that seek to compel arbitration is an interlocutory order appealable
    as of right pursuant to 42 Pa.C.S. § 7320(a)(1) and Pa.R.A.P. 311(a)(8).
    Saltzman v. Thomas Jefferson University Hospitals, Inc., 
    166 A.3d 465
    ,
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    J-A25034-21
    468 n.1 (Pa. Super. 2017); Cardinal v. Kindred Healthcare, Inc., 
    155 A.3d 46
    , 49 n.1 (Pa. Super. 2017).
    Our review of a decision denying preliminary objections to compel
    arbitration is limited to determining whether the court’s findings are supported
    by substantial evidence and whether the court abused its discretion in denying
    arbitration.   Kohlman I, 228 A.3d at 923; Saltzman, 166 A.3d at 471;
    Cardinal, 
    155 A.3d at 49-50
    .        Interpretation of the parties’ contract is
    a question of law as to which our review is de novo and plenary. Traver v.
    Reliant Senior Care Holdings, Inc., 
    228 A.3d 280
    , 285 (Pa. Super.
    2020). The issue of unconscionability is a question of law, but can turn on
    factual determinations. Salley v. Option One Mortgage Corp., 
    925 A.2d 115
    , 124 (Pa. 2007) (“While … the determination of whether an agreement is
    unconscionable is ultimately a question of law, … the necessary inquiry is often
    fact sensitive”); Kohlman I, 228 A.3d at 926-27 & n.10.
    Both Pennsylvania and federal law impose a strong public policy in favor
    of enforcing arbitration agreements. Marmet Health Care Center, Inc. v.
    Brown, 
    565 U.S. 530
    , 532-33 (2012); Moses H. Cone Memorial Hospital
    v. Mercury Construction Corp., 
    460 U.S. 1
    , 24 (1983); In re Estate of
    Atkinson, 
    231 A.3d 891
    , 898 (Pa. Super. 2020); Cardinal, 
    155 A.3d at 52
    .
    Under the Federal Arbitration Act, 
    9 U.S.C. § 2
    , our courts are required to
    compel arbitration of claims that are subject to a valid arbitration agreement.
    Taylor v. Extendicare Health Facilities, Inc., 
    147 A.3d 490
    , 509 (Pa.
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    2016); Estate of Atkinson, 231 A.3d at 900; Kohlman I, 228 A.3d at 925.
    Enforcement of an agreement to arbitrate may be denied only where the party
    opposing arbitration proves that a contract defense that applies equally to
    non-arbitration contracts invalidates the agreement to arbitrate. Taylor, 147
    A.3d at 509; Kohlman I, 228 A.3d at 925-26; Saltzman, 166 A.3d at 471.1
    The only contract defense that the trial court found applicable to the
    Arbitration Agreement was the defense of unconscionability. To invalidate or
    bar enforcement of a contract based on unconscionability, the party
    challenging the contract must show both an absence of meaningful choice,
    also referred to as procedural unconscionability, and contract terms that are
    unreasonably      favorable     to   the   other   party,   known   as   substantive
    unconscionability. Salley, 925 A.2d at 919-20; Cardinal, 
    155 A.3d at 53
    ;
    MacPherson v. Magee Memorial Hospital for Convalescence, 
    128 A.3d 1209
    , 1221 (Pa. Super. 2015). Procedural and substantive unconscionability
    are assessed under a sliding-scale approach, with a lesser degree of
    ____________________________________________
    1 Plaintiff argues that Federal Arbitration Act does not apply here and that
    arbitration may be denied on grounds other than generally applicable contract
    defenses because the Arbitration Agreement references the Pennsylvania
    Uniform Arbitration Act, Arbitration Agreement at 1, and is a separate
    agreement. This argument is without merit. In Taylor, the arbitration
    agreement that our Supreme Court held was subject to the Federal Arbitration
    Act was also a separate document, rather than a provision of a nursing home
    services agreement, and likewise referenced the Pennsylvania Uniform
    Arbitration Act. 147 A.3d at 494. There is therefore no basis for holding that
    the Arbitration Agreement here is not equally subject to the Federal Arbitration
    Act.
    -9-
    J-A25034-21
    substantive unconscionability required where the procedural unconscionability
    is very high. Salley, 925 A.2d at 125 n.12; Lomax v. Care One, LLC, No.
    344 WDA 2020, at 8-9, 18 (Pa. Super. March 5, 2021) (unpublished
    memorandum).
    The Highland Park Defendants argue that the trial court erred in finding
    the Arbitration Agreement unconscionable because Plaintiff did not prove that
    the   Arbitration   Agreement   was    both    procedurally   and   substantively
    unconscionable. We do not agree.
    The trial court found that the Arbitration Agreement was procedurally
    unconscionable because Decedent was in pain and was medicated at the time
    that she signed the Arbitration Agreement, Decedent was alone when she was
    asked to sign the Arbitration Agreement, had no opportunity to read the
    Arbitration Agreement and was not given a copy to review, and the provisions
    of the Arbitration Agreement were not fully read or explained to Decedent.
    Trial Court Opinion, 11/30/20, at 4-5.            The record supports these
    determinations.
    Decedent’s medical records show that she was receiving Oxycodone and
    Xanax from the day that she was admitted to Highland Park through February
    1, 2021.   Highland Park Progress Notes, 1/30/17-2/1/17.        The admissions
    director testified that no one else was with Decedent when she obtained
    Decedent’s signatures on the Arbitration Agreement and other documents in
    the admissions packet. Blasco Dep. at 34. The admissions director did not
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    recall what she and Decedent said or discussed when she presented the
    Arbitration Agreement and other admissions documents to Decedent for
    signing and testified to what she generally does with all residents. Id. at 32-
    37, 57-61, 64. The admissions director testified that when she has residents
    sign the admissions documents, “I usually just sit beside them and go over
    the paperwork and read -- I guess you can say that I read it to them.” Id. at
    36. The admissions director testified that residents can remain at Highland
    Park even if they refuse to sign any of the admissions documents and that she
    tells residents that the whole admission packet is optional, but that she does
    not tell them that they can sign the other documents and refuse the arbitration
    agreement. Id. at 37-38, 55-56. The admissions director testified that while
    she can recall residents refusing to sign any of the documents, she does not
    recall any resident ever refusing only the arbitration agreement or seeking to
    revoke an arbitration agreement.           Id. at 27-28, 40, 53.   The admissions
    director testified that she did not tell Decedent that she could consult an
    attorney before signing the Arbitration Agreement and that she has never told
    any resident that the resident has a right to revoke the agreement to arbitrate
    after signing. Id. at 38, 40.2 The admissions director did not testify that she
    ____________________________________________
    2 The admissions director under examination by the Highland Park Defendants’
    counsel later testified that she typically reads the Arbitration Agreement to
    residents in its entirety, including the paragraph discussing those subjects.
    Blasco Dep. at 64-65. The trial court, however, was not required to find that
    this testimony overrode her prior unequivocal testimony that she did not give
    (Footnote Continued Next Page)
    - 11 -
    J-A25034-21
    gave Decedent a copy of any of the documents that she had Decedent sign or
    told her to have a family member or any other person read over the paper
    work for her.
    The incompleteness of the information that was orally provided to
    Decedent and the fact that Decedent had no family member with her and was
    not given a copy for a family member to review are particularly significant
    here given Decedent’s physical inability to read the Arbitration Agreement and
    other documents that she was signing.              The record shows that when she
    arrived at Highland Park, Decedent was sufficiently blind that she was unable
    to even read newspaper headlines. Highland Park Resident Assessment and
    Care Screening at 6, 23. The admissions director did not testify that she took
    any additional steps to ensure that Decedent had a full opportunity to know
    what she was signing in light of her inability to read the documents herself.
    Rather, the admissions director testified that “[n]othing stands out that there
    were any issues with [Decedent] signing [the Arbitration Agreement].” Blasco
    Dep. at 37. It also does not appear that Highland Park lacked the ability to
    locate and communicate with family members. Highland Park’s records show
    that Decedent’s daughter and granddaughters were with her when she arrived
    at Highland Park from the hospital. Highland Park Progress Note, 1/30/17
    22:10.
    ____________________________________________
    this information to residents, particularly in light of her testimony that no
    resident has ever sought to revoke an arbitration agreement after signing.
    - 12 -
    J-A25034-21
    Given Decedent’s lack of ability to read the Arbitration Agreement, our
    decisions holding that nursing home arbitration agreements were not
    procedurally unconscionable are inapposite here. In those cases, there was
    no evidence or claim that the individuals who signed the arbitration
    agreements lacked the ability to read them and the written agreements that
    the signers could have read clearly stated that signing the arbitration
    agreement was not required for nursing home admission, that they had right
    to consult a lawyer before signing, and that they had a right to revoke the
    arbitration agreement. Cardinal, 
    155 A.3d at 52-54
    ; MacPherson, 128 A.3d
    at 1212-18, 1220-22; Glomb v. St. Barnabas Nursing Home, Inc., No.
    1724 WDA 2018, at 4, 6-10 (Pa. Super. September 10, 2020) (unpublished
    memorandum); Davis v. 1245 Church Road Operations, LLC, No. 3539
    EDA 2018, at 10-12 (Pa. Super. April 16, 2020) (unpublished memorandum).
    Here, in contrast, although the Arbitration Agreement contains such
    provisions, the record shows that those provisions were omitted from or not
    fully and accurately stated in the oral information given to Decedent, which
    was the only information that Decedent had when she decided to sign the
    Arbitration Agreement. Because Decedent was not fully orally advised of this
    information and was denied the ability to obtain assistance from a family
    member or other person not employed by Highland Park who could read the
    Arbitration Agreement, the process by which Decedent’s signature was
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    J-A25034-21
    obtained denied her a meaningful choice and therefore was procedurally
    unconscionable.
    On the issue of substantive unconscionability, the trial court found that
    the provision requiring that Decedent pay one-half of the costs of any
    arbitration, including one-half of the arbitrator’s fees, was substantively
    unconscionable because it imposed additional expenses for bringing a claim
    that Decedent would not have to bear in a court action. Trial Court Opinion,
    3/13/19, at 4; Trial Court Opinion, 11/30/20, at 5-6. We agree that imposing
    this additional expense on all claims for damages brought by a resident
    unreasonably favors the nursing home and is sufficient to satisfy the
    requirement of substantive unconscionability where, as here, the record
    establishes that the resident was not given full information concerning her
    choices or any opportunity to inform herself of what she was signing or to
    exercise those choices.
    The cases where this Court has rejected claims of substantive
    unconscionability are not to the contrary. In Cardinal, MacPherson, and
    Glomb, the arbitration agreements did not require the resident to pay any
    arbitrator fees to litigate a claim against the nursing home. Rather, in all of
    those cases, the arbitration agreements provided that the nursing home would
    pay the arbitrators’ fees and this Court specifically noted this fact in holding
    that the agreements were not unconscionable. Cardinal, 
    155 A.3d at 53-54
    ;
    MacPherson, 128 A.3d at 1217, 1222; Glomb, slip op. at 7, 9.
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    J-A25034-21
    In Riley v. Premier Healthcare Management, LLC, No. 3538 EDA
    2019 (Pa. Super. May 28, 2021) (unpublished memorandum), this Court held
    that an arbitration agreement that required the nursing home resident to pay
    one-half of the costs of arbitration was not substantively unconscionable. Slip
    op. at 7-8, 18-19. In Riley, however, the arbitration provisions did not require
    the resident to arbitrate all claims against the nursing home regardless of
    whether the costs of arbitration would be an impediment to asserting a claim,
    as they specifically excluded claims under $12,000 from mandatory
    arbitration. Id. at 4, 6. Moreover, in Riley, the decedent had the opportunity
    to read the arbitration provisions, which were set forth in all capital letters,
    and the plaintiff did not argue that requiring the payment of half of arbitration
    costs by an individual claimant created an impediment to asserting claims
    against the nursing home. Id. at 3, 12, 16-18.
    The Highland Park Defendants also argue that if the provision requiring
    payment of half of the costs of arbitration renders the Arbitration Agreement
    unconscionable, the trial court should have severed that provision and
    enforced the remainder of the Arbitration Agreement. This contention likewise
    fails.
    Where an arbitration agreement contains a severability clause and a
    provision of the agreement that is not an integral part of the agreement to
    arbitrate is unenforceable, that separate provision may be stricken and the
    remainder of the arbitration agreement may be enforced.           Fellerman v.
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    J-A25034-21
    PECO Energy Co., 
    159 A.3d 22
    , 29 (Pa. Super. 2017); MacPherson, 128
    A.3d at 1225-26. Thus, where a severability clause is present, a non-exclusive
    designation of a particular arbitration forum that has become unavailable may
    be severed and does not invalidate the agreement to arbitrate. MacPherson,
    128 A.3d at 1222-26. A limitation on damages that is void as against public
    policy that can also be stricken from an agreement to arbitrate and the
    remainder of the agreement may be enforced where a severability clause is
    present and the damage limitation is separate and distinct from the agreement
    to arbitrate. Fellerman, 159 A.3d at 28-29; Davis, slip op. at 13-14.
    The Arbitration Agreement contains a severability clause that provides
    that “[i]n 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.” Arbitration Agreement at
    1. Severance, however, cannot remove the unconscionability that the trial
    court found here for two reasons.
    First, the determination is not that requiring nursing home residents to
    share the cost of an arbitrator’s fees is so unreasonable that it is per se against
    public policy and inherently unenforceable.       The Arbitration Agreement is
    unconscionable because imposing that further expense for litigation by an
    individual is sufficiently unreasonably favorable to the nursing home to satisfy
    the requirement of substantive unconscionability when coupled with the high
    degree of procedural unconscionability that is present here.             No such
    - 16 -
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    procedural unconscionability was present in Fellerman, MacPherson, or
    Davis, where this Court held that the provision in question could be severed
    from   the    arbitration   agreement.      Fellerman,    159    A.3d   at   27-28;
    MacPherson, 128 A.3d at 1221-22; Davis, slip op. at 10-12.
    Second, severance would only remove the arbitration fee provision
    requiring the fees to be split evenly, but would not require the Highland Park
    Defendants to pay all the arbitration fees, like the agreements we upheld in
    Cardinal, MacPherson, and Glomb. Without the essential provision of who
    will pay the arbitration fees, there is no arbitration agreement to
    enforce.     Here, the parties did not simply omit a term, in which case, the
    court could supply a reasonable one for them. See, e.g., Greene v. Oliver
    Realty Inc., 
    526 A.2d 1192
    , 1194 (Pa. Super. 1987).             Instead, one party
    clearly sought to take advantage of the other. Under these circumstances, we
    decline to provide an alternate fee provision and allow the arbitration
    agreement to stand.
    Because the circumstances under which Highland Park obtained
    Decedent’s     signature    on   the   Arbitration   Agreement    imposed    terms
    unfavorable to her without giving her any meaningful choice to accept or reject
    the Arbitration Agreement, the trial court correctly concluded that the
    Arbitration Agreement was unconscionable as a matter of law. Accordingly,
    we find no abuse of discretion and affirm the trial court’s order overruling the
    Highland Park Defendants’ preliminary objection to compel arbitration.
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    Order affirmed.
    Judgment Entered.
    Joseph D. Seletyn, Esq.
    Prothonotary
    Date: 7/5/2022
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Document Info

Docket Number: 103 WDA 2021

Judges: Colins, J.

Filed Date: 7/5/2022

Precedential Status: Precedential

Modified Date: 7/5/2022