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Nursing Facility Faces Legal Challenge Over Arbitration Agreements Following COVID-19 Deaths

NORTHERN CALIFORNIA RECORD

Sunday, December 22, 2024

Nursing Facility Faces Legal Challenge Over Arbitration Agreements Following COVID-19 Deaths

State Court
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A legal battle over arbitration agreements in a skilled nursing facility has reached a critical juncture. The Court of Appeal of the State of California, Third Appellate District, has affirmed the trial court's decision to deny Windsor Redding Care Center, LLC's motion to compel arbitration. The complaint was filed by Nancy Hearden and other family members of deceased residents on June 28, 2024, alleging multiple causes of action against Windsor Redding Care Center, LLC.

The case stems from the deaths of Arthur Trenerry, Danny White, Charmaine Tappen, and Ada Riggs in 2020 at Windsor Redding Care Center. Family members Johanna Trenerry, Damon White, Charles Balding, and Leon Riggs signed arbitration agreements on behalf of their deceased relatives upon their admission to the facility. These agreements were intended to settle disputes through arbitration rather than litigation. However, the plaintiffs argue that these family members did not have the authority to bind the decedents or themselves to such agreements.

The plaintiffs' first amended complaint included causes of action for elder abuse, negligence, violation of the Patient’s Bill of Rights (Health & Safety Code §1430), unfair business practices, wrongful death, and fraud. Defendants moved to compel arbitration based on four agreements signed by family members rather than the decedents themselves. The trial court denied this motion for several reasons: lack of evidence that family signatories had authority to sign on behalf of the decedents; no evidence that family signatories agreed to arbitrate their individual claims; and potential conflicting results if some claims were arbitrated while others were litigated.

Defendants argued that the trial court erred in denying their motion. They contended that Leon Riggs had a durable power of attorney for Ada Riggs and thus could validly sign an arbitration agreement covering successor claims brought on her behalf. However, because Ada’s sons did not sign or agree to arbitrate their wrongful death claims—claims which arose from the same facts as Ada’s elder abuse claim—the trial court exercised its discretion under Code of Civil Procedure section 1281.2(c) to avoid conflicting rulings.

In reviewing whether a valid agreement existed and if any defenses rendered it unenforceable, the appellate court found no error or abuse of discretion by the trial court. The defendants failed to prove actual or ostensible agency relationships between decedents and family signatories necessary for binding arbitration agreements.

Plaintiffs are seeking relief including compensatory damages for alleged elder abuse and neglect leading to wrongful deaths due to COVID-19 infections at Windsor Redding Care Center. They argue that inadequate staffing and failure to implement proper health protocols led directly to these fatalities.

Representing plaintiffs are attorneys from York Law Corporation (Wendy C. York), Reiner Slaughter & Frankel (Russel Reiner), and Kershaw Talley Barlow (William A. Kershaw). Defendants are represented by David Zarmi from Zarmi Law.

Judge Leonard J. LaCasse presided over this case in Shasta County Superior Court under Case ID C098736.

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