Reversing a trial court order granting a motion to compel arbitration, a Florida appellate court held an arbitration agreement unconscionable because it limited judicial remedies for victims of nursing home abuse.

In Woebse v. Health Care and Retirement Corp. of America, No. 2D06-720, 2008 WL 313588 (Fla. Dist. Ct. App. Feb. 06, 2008), Kramer resided in Heartland's nursing home where he died on August 4, 2004. Woebse, Kramer's daughter and administrator of his estate, sued Heartland for wrongful death and various violations of Florida nursing home statutes.

In response, Heartland moved to compel arbitration pursuant to an arbitration agreement in the nursing home "Admissions Agreement." Woebse opposed the motion arguing the arbitration agreement was unconscionable and thus unenforceable. The trial court granted the motion and Woebse appealed.

Reversing the trial court, the Court held the arbitration agreement was unconscionable. Under Florida law, a court will strike down a contract when it is both procedurally and substantively unconscionable. The Court found the contract was procedurally unconscionable because no one from Heartland approached Woebse to sign the Admissions Agreement until the day after the nursing home admitted her seriously ill father.

Additionally, the arbitration agreement was located in a thirty-seven page document that the Heartland employee hastily presented to Woebse for her signature. The employee described the document as "admissions papers that were required to be signed for [her father's] continued stay." No one mentioned to Woebse that the contract contained an arbitration agreement or gave her adequate time to review the document. Finally, no equal bargaining power existed, as no one told Woebse that it was unnecessary to sign the arbitration agreement to secure treatment for her ill father.

The Court also found the arbitration agreement substantively unconscionable because it expressly limited statutory remedies otherwise available in court. Because the arbitration agreement did not permit Woebse to recover punitive damages, which Florida law provides to enable the victims of nursing home abuse to vindicate their rights, the Court struck down the agreement.