Gessa v. Manor Care of Florida, Inc.

Summary

The Florida Supreme Court reviewed an order compelling arbitration in a nursing-home negligence and statutory-rights action. The court held that provisions capping noneconomic damages at $250,000 and waiving punitive damages were not severable from the arbitration agreement and violated Florida public policy. It further held that the court, rather than the arbitrator, must decide the public-policy issue and concluded that Rent-A-Center, West, Inc. v. Jackson was inapplicable.

Holdings

1. The provisions capping noneconomic damages at $250,000 and waiving punitive damages were not severable from the arbitration agreement.
2. The court, not the arbitrator, must decide whether the arbitration agreement violates public policy.
3. The provisions capping noneconomic damages at $250,000 and waiving punitive damages violated Florida public policy and were unenforceable.
4. Rent-A-Center, West, Inc. v. Jackson was inapplicable because the arbitration agreement contained no delegation provision.

Questions Presented

1. Whether the contractual provisions capping noneconomic damages at $250,000 and waiving punitive damages were severable from the arbitration agreement.
2. Whether the court or the arbitrator had to decide whether the arbitration agreement violated public policy.
3. Whether the contractual limitations on liability violated the public policy embodied in Florida's Nursing Home Residents Act.
4. Whether Rent-A-Center, West, Inc. v. Jackson required the dispute to proceed to arbitration.

Disposition

quashed