Courtyard Gardens Health & Rehab. LLC v. Arnold (Majority, with Dissenting)Annotate this Case
Jessie and Annie Bullock were residents of Courtyard Gardens, a nursing-home facility. Linda Gulley, the Bullocks’ daughter, entered admission agreements and optional arbitration agreements on behalf of each parent. After Jessie died, Malinda Arnold, as personal representative of Jessie’s estate and as attorney-in-fact of Annie, filed a complaint against Courtyard Gardens, alleging, inter alia, negligence and medical malpractice. Courtyard Gardens moved to dismiss the complaint and compel arbitration. The circuit court denied the motion to compel arbitration, concluding that the arbitration agreement was impossible to perform because it selected the National Arbitration Forum (NAF) to serve as arbitrator, and the NAF was no longer in business. The Supreme Court reversed, holding (1) the NAF term was merely an ancillary logistical concern and was severable; and (2) therefore, the circuit court erred in denying Courtyard Gardens’ motion to compel arbitration based on impossibility of performance.