BARNES, Presiding Judge.
We granted Sunbridge's
The relevant undisputed facts establish that on May 27, 2009, Emma Wingo gave her daughter, Vickie Smith, a general power of attorney. On November 24, 2009, Smith enrolled Wingo at Cartersville Heights Care and Rehabilitation Center, a Sunbridge facility. As part of the admission process, Smith signed documents as her mother's legal representative, including an arbitration agreement that provided in pertinent part, that
The agreement further provided that
Rule 1(A) of the 2006 NAF Code of Procedure provides, in relevant part that:
Sections (E) and (F) of Rule 48 of the Code further provide, in pertinent part, that "[i]f parties are denied the opportunity to arbitrate a dispute, controversy, or Claim before the Forum, the Parties may seek legal and other remedies in accord with the applicable law," and 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."
In July 2009, the Minnesota Attorney General filed a complaint against the NAF and
Wingo died after spending approximately 11 months at the nursing home. On November 21, 2011, Smith and two siblings, Donna Green and Kenneth Anthony Brown, sued Sunbridge and several of its employees individually and as co-executors of their mother's estate, for medical malpractice, ordinary negligence, and wrongful death. Sunbridge moved to stay the litigation and compel arbitration of the dispute pursuant to the arbitration agreement. Smith responded, and argued that the arbitration agreement was void pursuant to the doctrine of impossibility because of the NAF consent order and also because the agreement was unconscionable. Following a hearing on the motion, the trial court denied Sunbridge's motion without explanation, but certified its order for immediate review. After this Court's grant of Sunbridge's application for interlocutory review, this appeal ensued.
"In reviewing the trial court's order, we look to see whether the trial court was correct as a matter of law in denying the motion to compel arbitration. Thus, the construction of an arbitration agreement, like any other contract, presents a question of law, which is subject to de novo review." (Citations omitted.) Cash In Advance of Florida, Inc. v. Jolley, 272 Ga.App. 282, 612 S.E.2d 101 (2005).
1. This Court has previously addressed the issue of whether the FAA mandates arbitration in the event the arbitral forum designation in an agreement is unavailable. In Miller, 323 Ga.App. at 120(2), 746 S.E.2d 680, this Court followed the "integral term versus ancillary logistical concern" test for determining whether an arbitration agreement becomes unenforceable where the arbitral forum designated therein is unavailable for any reason. Under this test,
(Citations and punctuation omitted.) Miller, 323 Ga.App. at 119(2), 746 S.E.2d 680. See Brown v. ITT Consumer Financial Corp., 211 F.3d 1217, 1222(II)(A)(3) (11th Cir.2000).
Sunbridge maintains that, despite the designation of the NAF as the arbitral forum in the Agreement, use of the NAF was not integral to the contract and that Section 5 of the FAA provides a mechanism for proceeding with arbitration when the chosen forum is no longer available.
In Miller, 323 Ga.App. at 119(2), 746 S.E.2d 680 this Court concluded that if "the agreement shows that the selection of a particular forum was merely an `ancillary logistical concern,' section 5 of the FCC will apply and a substitute arbitrator may be named." Conversely, if the selection of a particular forum was integral to the agreement, Section 5 does not apply, and the entire agreement is
(Citations and punctuation omitted.) Id. at 120(2), 746 S.E.2d 680.
Here, the Arbitration Agreement provides that any disputes between the parties "shall be submitted to binding arbitration" and the arbiter "shall apply the NAF's Code of Procedure." It also provides that "[p]re-arbitration discovery shall be governed by NAF's Code of Procedure." The Agreement further provides that the parties specifically opted out of NAF Rules 45 and 43, and that designation of the use of the NAF Code of Procedure did not mandate use of a NAF administrator. In contrast, the parties did not opt out of Sections E and F of Rule 48, which authorizes parties to seek legal and other remedies in the event the Code of Procedure was canceled.
Likewise, the NAF's Code of Procedure provides that "[t]his Code shall be deemed incorporated by reference in every Arbitration Agreement, which refers to the National Arbitration Forum ... or this Code of Procedure, unless the Parties agree otherwise. This Code shall be administered only by the National Arbitration Forum...."
Although Sunbridge maintains that this case is distinguishable from Miller because this agreement includes a provision that arbitrator need not be an NAF arbitrator, we are not persuaded. Even if a non-NAF arbitrator were appointed, the NAF Code would still apply under the terms of the parties' agreement. And because the NAF Code has in effect been canceled, Rule 48 of the Code authorizes the parties to pursue other remedies.
(Citations and punctuation omitted.) Miller, 323 Ga.App. at 124(2), 746 S.E.2d 680.
2. Because we have determined that the Agreement is impossible to perform, we not address Sunbridge's remaining enumerations of error.
Judgment affirmed.
MILLER, J., concurs.
RAY, J., concurs in judgment only.
If in the agreement provision be made for a method of naming or appointing an arbitrator or arbitrators or an umpire, such method shall be followed; but if no method be provided therein, or if a method be provided and any party thereto shall fail to avail himself of such method, or if for any other reason there shall be a lapse in the naming of an arbitrator or arbitrators or umpire, or in filling a vacancy, then upon the application of either party to the controversy the court shall designate and appoint an arbitrator or arbitrators or umpire, as the case may require, who shall act under the said agreement with the same force and effect as if he or they had been specifically named therein; and unless otherwise provided in the agreement the arbitration shall be by a single arbitrator. 9 USC § 5.