Professional Negligence Law Reporter

A California appellate court held that a nursing home arbitration agreement that was signed by a resident’s son, who had limited English proficiency, was valid and enforceable.

Michael Caballero, who allegedly reads and writes in Spanish only, signed a nursing home agreement containing an arbitration clause at the time of his mother’s admission to the Simi Valley Care Center (Premier Care). Three years later, after his mother suffered fatal injuries from a fall, Caballero and his siblings sued the home and others for her wrongful death. The trial court denied a defense petition to compel arbitration, finding that the home had failed to sufficiently inform Caballero of the arbitration agreement’s terms.

Reversing, the appellate court found that general principles of contract law determine whether parties have entered into a binding agreement to arbitrate their disputes. Citing case law, the court added that one who accepts or signs a contractual instrument is deemed to have assented to all of its terms. If the signatory cannot read or has not read the agreement, the court said, he or she should have it explained, adding that the inability to read or speak English does not alter the effect of the party’s signature on the agreement.

The court concluded that Caballero had assented to the arbitration agreement’s terms by signing and initialing it. There is no evidence that Premier Care had defrauded Caballero or prevented him from learning the contract’s terms, the court said, noting this would have provided an exception to the general rule. Moreover, the court found, Caballero’s failure to learn the contents of the agreement constitutes negligence on his part, which cannot be attributed to Premier Care.

Consequently, the court remanded the case, instructing the trial court to grant the defense petition to compel arbitration.

Citation: Caballero v. Premier Care Simi Valley LLC, 2021 WL 4434524 (Cal. Ct. App. Sept. 28, 2021).