Filed: Jul. 31, 2015
Latest Update: Mar. 02, 2020
Summary: Case: 15-10603 Date Filed: 07/31/2015 Page: 1 of 5 [DO NOT PUBLISH] IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT _ No. 15-10603 Non-Argument Calendar _ D.C. Docket No. 1:14-cv-00069-JRH-BKE BEVERLY ENTERPRISES INC., GOLDEN GATE NATIONAL SENIOR CARE, LLC, GGNSC HOLDINGS, LLC, GGNSC CLINICAL SERVICES, LLC, GGNSC ADMINISTRATIVE SERVICES, LLC, GGNSC AUGUSTA WINDERMERE, LLC, d.b.a. Golden LivingCenter- Windermere, Plaintiffs-Appellees, versus JUDY CYR, as Administrator of the Estate
Summary: Case: 15-10603 Date Filed: 07/31/2015 Page: 1 of 5 [DO NOT PUBLISH] IN THE UNITED STATES COURT OF APPEALS FOR THE ELEVENTH CIRCUIT _ No. 15-10603 Non-Argument Calendar _ D.C. Docket No. 1:14-cv-00069-JRH-BKE BEVERLY ENTERPRISES INC., GOLDEN GATE NATIONAL SENIOR CARE, LLC, GGNSC HOLDINGS, LLC, GGNSC CLINICAL SERVICES, LLC, GGNSC ADMINISTRATIVE SERVICES, LLC, GGNSC AUGUSTA WINDERMERE, LLC, d.b.a. Golden LivingCenter- Windermere, Plaintiffs-Appellees, versus JUDY CYR, as Administrator of the Estate ..
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Case: 15-10603 Date Filed: 07/31/2015 Page: 1 of 5
[DO NOT PUBLISH]
IN THE UNITED STATES COURT OF APPEALS
FOR THE ELEVENTH CIRCUIT
________________________
No. 15-10603
Non-Argument Calendar
________________________
D.C. Docket No. 1:14-cv-00069-JRH-BKE
BEVERLY ENTERPRISES INC.,
GOLDEN GATE NATIONAL SENIOR CARE, LLC,
GGNSC HOLDINGS, LLC,
GGNSC CLINICAL SERVICES, LLC,
GGNSC ADMINISTRATIVE SERVICES, LLC,
GGNSC AUGUSTA WINDERMERE, LLC,
d.b.a. Golden LivingCenter- Windermere,
Plaintiffs-Appellees,
versus
JUDY CYR,
as Administrator of the Estate of Frankie Campbell,
JUDY CYR,
in her Representative Capacity on Behalf of the Children of Frankie Campbell,
Defendant-Appellant.
________________________
Appeal from the United States District Court
for the Southern District of Georgia
________________________
(July 31, 2015)
Case: 15-10603 Date Filed: 07/31/2015 Page: 2 of 5
Before ED CARNES, Chief Judge, MARCUS, and WILLIAM PRYOR, Circuit
Judges.
PER CURIAM:
Plaintiffs (collectively “Golden Gate”) operate a nursing facility called
GoldenLiving Center - Windermere. Defendant Judy Cyr, acting as attorney-in-
fact for her mother Frankie Campbell, signed Golden Gate’s arbitration agreement
on Campbell’s behalf when Campbell was admitted into Windermere. After
Campbell died in Windermere’s care, Cyr sued Golden Gate in state court under
Georgia’s wrongful death statute on her own behalf and on behalf of Campbell’s
other children. See Ga. Code §§ 51-4-2 & 51-4-3 (2010). Golden Gate then filed
this action in the federal district court seeking enforcement of the arbitration
agreement and moving to compel arbitration. The district court ordered that all of
Cyr’s claims be arbitrated. This is her appeal of that order, which we review de
novo. See In re Checking Account Overdraft Litig.,
754 F.3d 1290, 1293 (11th
Cir. 2014).
The arbitration agreement Golden Gate drafted contains a provision stating
that disputes “shall be resolved exclusively by binding arbitration . . . in
accordance with the National Arbitration Forum [NAF] Code of Procedure, which
is hereby incorporated into this agreement.” That code provides that “[i]n the
event of a cancellation of this Code, any Party may seek legal and other remedies
regarding any matter upon which an Award or Order has not been entered.” R. 48,
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Case: 15-10603 Date Filed: 07/31/2015 Page: 3 of 5
NAF Code of Procedure (2006). In 2009, after a suit by the Minnesota Attorney
General, the NAF agreed it would no longer “[i]n any manner participate in” any
consumer arbitration (including the type of arbitration at issue here) filed on or
after July 24, 2009 — effectively canceling the code of procedure. See Sunbridge
Retirement Care Assocs., LLC. v. Smith,
757 S.E.2d 157, 160 (Ga. Ct. App. 2014).
The parties to this case, by incorporating the code into their arbitration agreement,
agreed that they could pursue “legal and other remedies” if the code was cancelled.
That is what Cyr is doing.
In arguing for arbitration, Golden Gate relies on our decision in Brown v.
ITT Consumer Financial Corp.,
211 F.3d 1217 (11th Cir. 2000), but that reliance is
misplaced. We held in Brown that when the forum chosen for arbitration is
unavailable, the Federal Arbitration Act provides for substitution of another
arbitrator unless choice of forum “is an integral part of the agreement to arbitrate,
rather than an ancillary logistical concern.”
Id. at 1222 (quotation marks omitted);
see 9 U.S.C. § 5. First, Brown is factually distinguishable. Although it also
involved the NAF, which was unavailable as a forum for reasons only hinted at in
the opinion, the Brown decision predated the consent decree in which the NAF
agreed not to participate in consumer arbitration of the type at issue here and which
Georgia courts have recognized cancels the NAF code. See
Sunbridge, 757 S.E.2d
at 160.
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Second, the NAF code is “integral” to the agreement in this case because the
agreement explicitly incorporates the NAF code, making the code an essential part
of the agreement. The Georgia Court of Appeals has already held as much,
interpreting this very agreement against this very plaintiff. Miller v. GGNSC
Atlanta, LLC,
746 S.E.2d 680, 685–89 (Ga. Ct. App. 2013). We are not persuaded
by Golden Gate’s attempts to disown the language it drafted.
Golden Gate argues that we should disregard the holdings of Sunbridge and
Miller because they are “specifically related to arbitration, not just contracts in
general,” which, according to Golden Gate, means that those holdings run afoul of
the federal presumption in favor of arbitrability. We are not persuaded. The
underlying arbitration agreement is a contract, and that contract is governed by
state law. See Caley v. Gulfstream Aerospace Corp.,
428 F.3d 1359, 1367–68
(11th Cir. 2005). The Georgia Court of Appeals in Miller and Sunbridge applied
general Georgia contract law principles to contracts that happened to be arbitration
agreements. See
Miller, 746 S.E.2d at 684 (“In deciding the validity of . . . an
[arbitration] agreement, therefore, we apply the usual rules of Georgia law
regarding the construction and enforcement of contracts.”);
Sunbridge, 757 S.E.2d
at 159–60 (applying rule from Miller). The federal presumption in favor of
arbitrability does not prevent that.
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We VACATE the district court’s order compelling arbitration and
REMAND the case for further proceedings consistent with this opinion.
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