Florida Court Compels Arbitration Against Nursing Home Despite Flawed Agreement

Nathan Adams is a Partner in Holland & Knight's Tallahassee office

A South Florida court of appeal compelled arbitration against a nursing home in a negligence lawsuit after upholding a severability clause despite an unenforceable cap on non-economic damages and prohibition on punitive damages. Obolensky v. Chatsworth at Wellington Green, LLC, No. 4D16-3143 (Fla. 4th DCA Feb. 28, 2018). Relying upon two recent Florida Supreme Court decisions, the plaintiff argued that the trial court should not have enforced the agreement because the limitation of liability provisions violate public policy and because they go to the essence of the parties' agreement. Gessa v. Manor Care of Fla., Inc., 86 So. 3d 484 (Fla. 2011); Shotts v. OP Winter Haven, Inc., 86 So. 3d 456 (Fla. 2011).

The court of appeal distinguished Gassa and Shotts. The court determined that Shotts is distinguishable because that arbitration agreement lacked a severability clause. About Gassa, the court of appeal determined that the Florida Supreme Court's decision not to enforce the severability clause was dependent upon the agreement's resort to the...

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