Earlier this month, the South Carolina Supreme Court issued a written opinion illustrating how a party’s failure to be upfront with its intention to compel mediation may prevent that party from later compelling mediation. In the case, Johnson v. Heritage Healthcare of Estill, the court determined that the defendant nursing facility waived its right to seek arbitration after the nursing facility failed to demand arbitration when the plaintiff initially filed the lawsuit.
The Facts of the Case
The plaintiff’s mother passed away while in the care of the defendant nursing home. After her mother’s death, the plaintiff filed a wrongful death case against the nursing home, alleging that the negligent care it provided to her mother led to her death. Prior to admitting her mother to the home, the plaintiff had been granted a Power of Attorney and had signed an arbitration agreement, consenting to submit any claims to an arbitration panel rather than pursuing them through the court system.
Once the defendant nursing home got notice of the claim, it answered the complaint, asserting several defenses. One of the defenses cited was that the plaintiff had agreed to seek arbitration, rather than use the court system, in the contract signed prior to her mother’s admission. The nursing home also sought a discovery order from the court, ordering the plaintiff to disclose certain documents. Importantly, while the nursing home cited arbitration as a defense, it never actually demanded arbitration or initiated arbitration proceedings. It was not until eight months later that the nursing home filed a motion to compel arbitration.