Small v. HCF of Perrysburg, Inc.

Owen Small was semiconscious and in need of immediate hospital care when he was admitted to a nursing home operated by HCF of Perrysburg, Inc. (nursing home) (defendant). During this stressful time, as Small’s legal representative through a power of attorney, Small’s wife signed the nursing home’s admission agreement on Small’s behalf. The agreement contained an arbitration clause stating that (1) a resident was required to submit all disputes with the nursing home to binding arbitration, (2) the nursing home was allowed to choose whether to submit its disputes with a resident to a court, (3) the losing party could be forced to pay the winning party’s attorney’s fees, and (4) any arbitration would occur at the nursing home (instead of a neutral location). The arbitration clause also claimed that a resident was not required to agree to the arbitration terms to be admitted, but the form provided no method for a resident to reject the terms. After Small was admitted, he was being transported in a wheelchair without safety restraints when he fell out of the wheelchair, suffering injuries. Nine days later, Small died. Small’s estate and family (plaintiffs) sued the nursing home in state court, alleging that the nursing home’s negligence had caused the wheelchair fall that led to Small’s death. The nursing home moved to transfer the dispute from the state court to a private arbitration. Small’s estate and family argued that the arbitration clause was unenforceable because it was unconscionable. The trial court granted the motion and ruled that the dispute would be settled by private arbitration. Small’s estate and family appealed.