Judge: Virginia Keeny, Case: 2STCV21220, Date: 2022-12-12 Tentative Ruling

Case Number: 2STCV21220    Hearing Date: December 12, 2022    Dept: W

MARQUITA HAIRE LOFLIN, et al. v. CREATIVE CARE, INC., et al.

 

defendant farrah khaleghi’s and defendants CREATIVE CARE, INC., DR. MORTEZA KHALEGHI, and DR. KAREN KHALEGHI’s motions to compel arbitration

 

Date of Hearing:        December 12, 2022                           Trial Date:       None set.

Department:              W                                                        Case No.:        22STCV21220

 

BACKGROUND

 

On June 29, 2022, Plaintiffs Marquita Haire Loflin, McKenzie Loflin, and the Estate of Johnathon Loflin, through his successor in interest, McKenzie Loflin filed a complaint against Creative Care, Inc. (“CC”), Morteza Khaleghi, Karen Khaleghi, and Farrah Khaleghi asserting causes of action for (1) Wrongful Death, CCP §377.60; (2) Survival, CCP §377.30; (3) Violations of California Elder Abuse and Dependent Adult Civil Protection Act, Welf. & Inst. Code §15600, et seq.; (4) Fraudulent Misrepresentation (5) Intentional Infliction of Emotional Distress; and (6) Professional Liability – Negligence. Plaintiff named Cliffside Malibu, Inc. as Doe 1. On October 13, 2022, Plaintiff dismissed their sixth cause of action against Doe 1.

 

On October 18, 2019, Johnathon “Johnny” Loflin checked into a rehabilitation facility in Woodland Hills, California owned and operated by Defendants CC, Morteza Khaleghi, and Karen Khaleghi, and where Defendant Farrah Khaleghi was the Clinical Director. Plaintiffs allege late at night on February 12, 2020, CC informed Johnny’s family that CC would be transferring Johnny immediately against Johnny’s therapist, Johnny’s, and his family’s wishes. Plaintiffs allege given CC’s professed expertise in mental health and substance abuse treatment, as well as CC’s experience in treating Johnny and knowledge of his psychiatric and addiction treatment needs, CC knew, or reasonably should have known, that Johnny should not have been transferred. On April 10, 2020, Johnny was found unresponsive in a bathroom at the facility after ingesting fentanyl.

 

[Tentative] Ruling

 

I.                    Defendant Farrah Khaleghi’s Motion to Compel Arbitration is DENIED.

II.                  Defendants Creative Care, Inc., Dr. Morteza Khaleghi, and Dr. Karen Khaleghi’s Motion to Compel Arbitration is DENIED.

 

DISCUSSION

 

I.                    DEFENDANT FARRAH KHALEGHI’S MOTION TO COMPEL ARBITRATION

 

Defendant Farrah Khaleghi moves for an order compelling Plaintiffs to arbitrate the controversy alleged in the complaint in binding arbitration and to stay the Superior Court matter will be heard.

 

Code of Civil Procedure section 1281.2 permits a party to file a petition to request that the court order the parties to arbitrate a controversy.  The trial court first determines whether an enforceable arbitration agreement exists between the parties and then whether the plaintiff’s claims are covered by the agreement.  (Omar v. Ralphs Grocery Co. (2004) 118 Cal.App.4th 955, 961.) “California has a strong public policy in favor of arbitration and any doubts regarding the arbitrability of a dispute are resolved in favor of arbitration.”  (Coast Plaza Doctors Hosp. v. Blue Cross of Cal. (2000) 83 Cal.App.4th 677, 686.) 

 

The party seeking to enforce the arbitration agreement bears the burden of proving the existence of a valid arbitration agreement by the preponderance of the evidence.  (Giuliano v. Inland Empire Personnel, Inc. (2007) 149 Cal.App.4th 1276, 1284.) The party opposing the petition to compel arbitration bears the burden of proving by a preponderance of the evidence any fact necessary to its defense.  (Id.) 

 

Plaintiffs do not dispute that Johnny signed the agreement. The arbitration provision of the agreement states:

 

12. BINDING ARBITRATION. The Client, any guarantor of the Client’s payment and the facility agree that Binding Arbitration is the sole and the exclusive remedy against Creative Care and its staff. Any such Binding Arbitration must be conducted in Los Angeles County and the prevailing party, in addition to any other awards received, shall be entitled to reasonable attorney’s fees and costs.

 

Plaintiffs argue, however, that the arbitration clause (1) does not purport to bind Johnny’s heirs, successors, assigns, or family members; and (2) is not signed by anyone except Johnny. Plaintiffs contend Monschke v. Timber Ridge Assisted Living, LLC (2016) 244 Cal.App.4th 583, 585, is instructive.

 

In Monschke, decedent’s daughter, acting as personal representative for the estate of her mother, filed a wrongful death and elder abuse action against the defendant assisted living center. (Monschke v. Timber Ridge Assisted Living, LLC (2016) 244 Cal.App.4th 583, 585.) The defendant petitioned to compel arbitration on the ground plaintiff, on behalf of decedent, had signed an agreement with an arbitration clause before enrolling decedent in defendant's facility. (Id.) The arbitration agreement stated in relevant part: “’[Y]ou agree that any and all claims and disputes arising from or related to this Agreement or to your residency, care or services at Timber Ridge shall be resolved by submission to neutral, binding arbitration .... This arbitration clause binds all parties to this Agreement and their spouse, heirs, representatives, executors, administrators, successors, and assigns, as applicable.’” (Ibid.) Because decedent was not plaintiff's agent, plaintiff and decedent were not married, and plaintiff is not a minor child, the court found the only parties to the residency agreement were defendant and decedent. (Id. at p. 587.) The court had relied on a Second District case, which held “[g]enerally speaking, one must be a party to an arbitration agreement to be bound by it. ‘The strong public policy in favor of arbitration does not extend to those who are not parties to an arbitration agreement, and a party cannot be compelled to arbitrate a dispute that he has not agreed to resolve by arbitration.’ ” (Buckner v. Tamarin (2002) 98 Cal.App.4th 140, 142.) “Under three circumstances, however, someone can bind another person to a medical arbitration agreement without that other person's consent. First, an agent can bind a principal. [Citation.] Second, spouses can bind each other. [Citations.] And, third, a parent can bind a minor child. [Citations.]” (Id.)

 

However, the California Supreme Court has held that a patient seeking medical care can bind other persons to arbitrate their claims for the patient’s wrongful death. In Ruiz v. Podolsky (2010) 50 Cal.4th 838, the California Supreme Court held that “wrongful death plaintiffs may be bound by agreements entered into by decedent that limit the scope of the wrongful death action.” There, a patient had entered into an arbitration agreement with a doctor, which provided that it was binding on "' . . . all parties whose claims may arise out of or relate to treatment or service provided by the physician including any spouse or heirs of the patient . . . ." (Id. at pp. 841-842.) The provision also specifically provided for arbitration of wrongful death claims. (Id. at p. 842.) The Court then held that “section 1295, construed in light of its purpose, is designed to permit patients who sign arbitration agreements to bind their heirs in wrongful death actions." (Id. at p. 849.) It concluded that "all wrongful death claimants are bound by arbitration agreements entered into pursuant to section 1295, at least when, as here, the language of the agreement manifests an intent to bind these claimants.” (Id. at p. 841.)

 

In determining whether section 1295 applies, the court must look at “the basis of the claims as pleaded in the complaint. If the primary basis for the wrongful death claim sounds in professional negligence as defined by MICRA, then section 1295 applies. If, as plaintiffs claim here, the primary basis is under the Elder Abuse and Dependent Adult Civil Protection Act (Welf. & Inst. Code, § 15600 et seq.) (the Act), then section 1295 does not apply and neither does Ruiz ’s exception to the general rule that one who has not consented cannot be compelled to arbitrate.” (Avila v. Southern California Specialty Care, Inc. (2018) 20 Cal.App.5th 835, 842.) “Section 1295 is part of California’s Medical Injury Compensation Reform Act (MICRA). It created certain requirements for arbitration agreements of “any dispute as to professional negligence of a health care provider.” [Citation.] It defines “professional negligence” as “a negligent act or omission to act by a health care provider in the rendering of professional services, which act or omission is the proximate cause of a personal injury or wrongful death, provided that such services are within the scope of services for which the provider is licensed and which are not within any restriction imposed by the licensing agency or licensed hospital.” [Citation.] 

 

Plaintiffs argue their claims against Defendants are not ones for “professional negligence” as defined in Section 1295 as Plaintiffs allege intentional misconduct, neglect, and abuse throughout their complaint, which go far beyond professional negligence.

 

Here, Plaintiffs plead wrongful death by negligence. A review of the allegations incorporated into the wrongful death claim demonstrates that the wrongful death claim arises from Defendants depriving the decedent the goods and/or services necessary to avoid physical harm or mental suffering, failing to provide medical care for his physical and psychiatric health needs, and wrongfully transferring the decedent against the advice of his therapist and the wishes of Johnny and his family, ultimately resulting in his death. (Compl. ¶¶28-33.)

 

As the wrongful death claim is based on neglect, Code of Civil Procedure section 1295 and the exception under Ruiz do not apply. Even if the exception in Ruiz were to apply to the facts here, the court finds the language of the agreement does not manifest an intent to bind Plaintiffs. The express language of the subject arbitration clause specifies that it is limited to the client and any guarantor of the client. This is not like the broad language in Ruiz where the express language included “any spouse or heirs of the patient and any children, whether born or unborn, at the time of the occurrence giving rise to the claim.” (Ruiz, supra, 50 Cal.4th at p. 842.) Nor has Defendant established Plaintiffs are the decedent’s agent, spouse, or parent of a minor child. (See Buckner, supra, 98 Cal.App.4th at p. 142.)

 

Plaintiffs also argue the court should exercise its discretion under Code of Civil Procedure section 1281.2(c) and deny the motion because there is a strong possibility of inconsistent rulings if the survivorship claims were arbitrated while the wrongful death claim was litigated. (Avila, supra, 20 Cal.App.5th at 845.) As discussed above, Plaintiffs are not bound by the arbitration agreement. As the wrongful death claim is based on the same facts as the survivorship claims, there is a possibility of conflicting rulings on common issues of law and fact as between Plaintiffs’ claims.  

 

Given the possibility of conflicting rulings, the court finds that no claims should be sent to arbitration pursuant to Code of Civil Procedure section 1281.2(c).

 

Accordingly, Defendant Farrah Khaleghi’s Motion to Compel Arbitration is DENIED.

 

II.                  DEFENDANTS CREATIVE CARE, INC., DR. MORTEZA KHALEGI, AND DR. KAREN KHALEGHIS’ MOTION TO COMPEL ARBITRATION

 

Based on the discussion above, the court denies Defendants Creative Care, Inc., Dr. Morteza Khaleghi, and Dr. Karen Khaleghi’s Motions to Compel Arbitration. The court notes Defendants have cited several additional cases to support their motion. However, each case differs from the facts in the instant matter.

 

In Laswell v. AG Seal Beach, LLC (2010) 189 Cal.App.4th 1399, an elderly patient was admitted to a rehabilitation facility that was owned by one entity, operated by another as licensee and had a management contract with a third entity. The patient signed an arbitration agreement with only one of the entities upon admission. The patient sued all three entities. The court found the two nonsignatory entities were not third parties to the arbitration agreement, and accordingly could be compelled to arbitration on the grounds of equitable estoppel. Similarly, in Caballero v. Premier Care Simi Valley LLC (2021) 69 Cal.App.5th 512, 515, the plaintiff was the signatory to the arbitration clause and the arbitration clause complied with Section 1295.

 

Hogan v. Country Villa Health Services (2007) 148 Cal.App.4th 259, involved a daughter of a decedent who had been designated power of attorney for health care. Here, there are no allegations Johnny had designated his mother or sister in durable power of attorney for his health care. Similarly, Gordon v. Atria Management Co., LLC (2012) 70 Cal.App.5th 1020 involved an arbitration agreement signed by a power of attorney.

 

In Baker v. Italian Maple Holdings, LLC (2017) 13 Cal.App.5th 1152, the court had found the agreements substantially complied with all of the material requirements set forth in section 1295. Lastly, Herbert v. Superior Court (1985) 169 Cal.App.3d 718 is inapplicable here as the court did not want to split the wrongful death cause between those bound by the arbitration agreement signed by the decedent and those who were not signatories to the arbitration agreement. Here, neither Johnny’s mother nor sister is bound by the arbitration agreement.

 

Accordingly, Defendants Creative Care, Inc., Dr. Morteza Khaleghi, and Dr. Karen Khaleghi’s Motions to Compel Arbitration is DENIED.