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CHG Hospital Bellaire, LLC v. Seketa Johnson

Date: 09-17-2022

Case Number: 01-20-00437-CV

Judge: Sarah Beth Landau

Court:

Court of Appeals For The First District of Texas

On appeal from the 157th District Court of Harris County

Plaintiff's Attorney: Warren Thomas McCollum

Charles T. Frazier Jr.

Defendant's Attorney:



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Description:

Houston, Texas – Personal Injury lawyer represented Appellee with suing for negligence, premises liability, and gross negligence.





In August 2019, Johnson sued CHG-Bellaire for negligence, premises

liability, and gross negligence, alleging that she sustained injuries while training as

a nurse at a hospital operated by CHG-Bellaire. Johnson and her trainer had to

physically lift and adjust a "very heavy” patient on the bed because the hospital did

not have the equipment ordinarily used to move patients. The trainer suddenly

grabbed the bed sheets and began pulling the patient up the bed without warning.

Trying to catch the patient, Johnson quickly pulled the other side of the bed sheets

and felt a pop in her spine followed by pain. She immediately stopped pulling the

bed sheets and told her trainer about the injury.

3

Physicians treated Johnson's injuries and advised her to not lift anything

weighing more than 10 pounds until she fully recovered. Although Johnson had not

fully healed, CHG-Bellaire placed her back on regular rotation. Johnson told her

superiors that she could not perform the same duties because lifting patients violated

her doctor's orders. Nevertheless, CHG-Bellaire still required her to lift patients.

As Johnson was caring for a patient, the patient became dizzy and started to

fall. Johnson rushed to prevent the patient from falling and she felt a "pull and pain”

in her spine. Since the incident, the pain in Johnson's back continued to worsen and

prevented her from performing tasks she could perform before.

CHG-Bellaire answered the suit with special exceptions, a general denial, and

affirmative defenses, asserting that Johnson's claims were subject to arbitration.

CHG-Bellaire argued that the parties had entered into an enforceable arbitration

agreement. It also argued that Johnson's workplace injury claims fell within the

scope of the arbitration agreement.

CHG-Bellaire attached evidence to its motion to show the existence and scope

of an enforceable arbitration agreement. The evidence included copies of the

Employee Injury Benefit Plan (EIBP), the Employee Handbook, and the

Employment Dispute Resolution Agreement (EDRA).

Section 5(a)(i) of the EIBP included a provision entitled "Mutual Agreement

to Arbitrate,” addressing the scope of the arbitration agreement:

4

This Agreement is mutual, covering all claims that Company or

Claimant may have which arise from: Any injury suffered by Claimant

while in the Course and Scope of Claimant's employment with

Company, including but not limited to, claims for negligence, gross

negligence, and all claims for personal injuries, physical impairment,

disfigurement, pain and suffering, mental anguish, wrongful death,

survival actions, loss of consortium and/or services, medical and

hospital expenses, expenses of transportation for medical treatment,

expenses of drugs and medical appliances, emotional distress,

exemplary or punitive damages and any other loss, detriment or claim

of whatever kind and character.

Section 508 of the EDRA lists the claims covered by the arbitration

agreement:

The Company and you mutually consent and agree to the resolution by

arbitration of all claims or disputes (Claim(s)), whether or not arising

out of your employment (or its termination), that the Company may

have against you or that you may have against the Company or its

officers, directors, members, owners, shareholders, partners, employees

or agents, past or present, in their capacity as such or otherwise. . . . The

Claims covered by this Agreement include, but are not limited to,

claims for wages or other compensation due, claims for breach of any

contract or covenant (express or implied); tort claims; equitable claims;

claims for discrimination (including, but not limited to, race, color, sex,

religion, national origin, age, marital status, or medical condition,

handicap or disability); claims for retaliation or harassment; all

common law claims and claims for violation of any federal, state, or

other governmental law, statute, regulation, or ordinance, except for

claims identified below.

Section 509 of the EDRA excludes certain claims, including worker's

compensation claims, from arbitration:

Claims you may have for workers' compensation, unemployment

compensation, or state disability insurance benefits are not covered by

this Agreement. . . . This Agreement also does not apply to any Claim

that an applicable federal statute expressly states cannot be arbitrated.

5

Similarly, the Employee Handbook included the same arbitration provision

referenced in the EDRA:

Agreeing to the Employment Dispute Resolution Program Agreement

(Agreement) electronically or otherwise constitutes your agreement to

be bound by the EDR Program. Likewise, the Company agrees to be

bound by this same program. This mutual agreement to arbitrate claims

means that both you and the Company are bound to use the EDR

Program as the sole means of resolving covered claims and disputes

and agree to forego any right either may have to a jury trial on issues

covered by the EDR Program. However, no remedies that otherwise

would be available to you or the Company in a court of law will be

forfeited by virtue of the agreement to use and be bound by the EDR

Program.

CHG-Bellaire attached two affidavits to its motion. The first was from I. Tai,

Escalation Manager for Saba TalentSpace, an onboarding platform. Tai testified that

newly hired CHG-Bellaire employees had to review and acknowledge several

employment agreements containing arbitration provisions through the online

platform. Each employee had to create a secure and unique username and password,

which was encrypted and stored in the Saba database. After successfully entering

login information, the system prompts the employee to complete the Employee

Handbook course and the EIBP course. After the employee completes the course,

the Saba database tests the employees understanding of the course content, generates

transcript reports, and displays the employee's scores.

Tai also testified that Johnson created a username and password on Saba,

accessed various employment documents, and completed the Employee Handbook

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course and the EIBP course on July 8, 2019. Saba's records showed that Johnson

successfully answered all five questions in the Employee Handbook course and all

three questions in the EIBP course.

CHG-Bellaire's other affidavit was from K. Mendez, the HR Director for the

Cornerstone Healthcare Group Holdings, Inc., the parent company of CHG-Bellaire.

Mendez testified that she was responsible for the "overall processes and

implementation of policies involving documentation related to onboarding” new

employees. Mendez confirmed that the Saba reports showed that Johnson had

acknowledged reviewing the Employee Handbook, the EDRA, and the EIBP.

Johnson moved to strike the motion to compel arbitration, arguing that the

arbitration agreements exclude workers' compensation claims and that the evidence

did not establish a valid arbitration agreement because she testified at her deposition

that she could not recall acknowledging or agreeing to the arbitration agreements.

CHG-Bellaire replied to Johnson's motion, contending that her claims fell within the

scope of the arbitration agreements because she sought damages for personal injuries

for her tort claims and did not allege any claims under the Texas Workers

Compensation Act. It also contended that the evidence established the existence of

enforceable arbitration agreements.

7

The trial court denied CHG-Bellaire's motion to compel arbitration without a

hearing. CHG-Bellaire appealed.1

On the original submission of the appeal, we concluded that Johnson's sworn

testimony that she did not recall electronically acknowledging the arbitration

agreement raised a fact issue on its validity. CHG Hosp. Bellaire, 2021 WL 1537465,

at *7. Consequently, we did not determine whether CHG-Bellaire carried its burden

of establishing that Johnson's claims fell within the scope of the arbitration

agreement. Id. (citing TEX. R. APP. P. 47.1).

After we issued our opinion, the Texas Supreme Court decided Aerotek, Inc.

v. Boyd, 624 S.W.3d 199 (Tex. 2021), a case involving similar facts. CHG-Bellaire

petitioned for review. The parties agreed that under Aerotek, Johnson's sworn

testimony did not create a fact issue as to the arbitration agreement's validity. CHG

Hosp. Bellaire, 644 S.W.3d at 189. The Supreme Court reversed our judgment and

remanded the case to "consider Johnson's alternative, unaddressed argument that the

trial court properly denied CHG's motion to compel arbitration because her claims

do not fall within the scope of the arbitration agreement.” Id. With the validity of the

arbitration agreement resolved, we turn to the scope of the agreement.

1 The arbitration agreement is governed by the FAA. This Court has jurisdiction to

review the interlocutory order denying CHG-Bellaire's motion to compel

arbitration. See TEX. CIV. PRAC. & REM. CODE § 51.016; see also 9 U.S.C.

§§ 16(a)(1)(C), 206; Acad., Ltd. v. Miller, 405 S.W.3d 152, 154 (Tex. App.—

Houston [1st Dist.] 2013, no pet.).

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Scope of the Arbitration Agreement

CHG-Bellaire contends the trial court erred by denying its motion to compel

arbitration because the arbitration agreement covers Johnson's workplace injury

claims. In response, Johnson asserts that CHG-Bellaire failed to establish that the

arbitration agreement covered her claims because it explicitly excludes workers'

compensation claims.

A. Standard of review

"We review interlocutory appeals of orders denying motions to compel

arbitration for an abuse of discretion, deferring to the trial court's factual

determinations if they are supported by the evidence and reviewing questions of law

de novo.” Valerus Compression Servs., LP v. Austin, 417 S.W.3d 202, 207 (Tex.

App.—Houston [1st Dist.] 2013, no pet.). Under this standard, we will reverse the

trial court's ruling only when "it acts in an arbitrary or unreasonable manner, without

reference to any guiding rules or principles.” In re Nitla S.A. de C.V., 92 S.W.3d 419,

422 (Tex. 2002) (per curiam). We construe the record in a light favorable to

supporting the trial court's ruling. J.M. Davidson, Inc. v. Webster, 128 S.W.3d 223,

233 (Tex. 2003); In re Est. of Guerrero, 465 S.W.3d 693, 701 (Tex. App.—Houston

[14th Dist.] 2015, pet. denied) (en banc).

9

B. Applicable law

After demonstrating that a valid arbitration agreement exists, a party seeking

to compel arbitration must establish that the dispute is within the agreement's scope.

Baby Dolls Topless Saloons, Inc. v. Sotero, 642 S.W.3d 583, 586 (Tex. 2022). If one

party resists arbitration, the trial court normally decides gateway issues, such as

scope. Robinson v. Home Owners Mgmt. Enters., Inc., 590 S.W.3d 518, 531 (Tex.

2019). But arbitration is a matter of contract, so parties are free to alter these

presumptions by agreement. Id. When the contract delegates the arbitrability

question to an arbitrator, a court may not override the contract. Id. It has no power

to decide the issue. Id.

C. The arbitration agreements delegate questions of scope to arbitrator

The EIBP arbitration agreement covers "[a]ny injury suffered by Claimant

while in the Course and Scope of Claimant's employment,” "all claims for personal

injuries,” and "any other loss, detriment or claim of whatever kind and character.”

Similarly, the EDRA extends to "tort claims,” "all common law claims,” and "claims

for violation of any federal, state or other governmental law.”

Johnson argues that the agreements exclude her claims from coverage because

they are workers' compensation claims. The EIBP exempts from arbitration claims

for "Workers' Compensation Benefits under the Texas Workers' Compensation Act

10

or any other state or federal law.” The EDRA similarly states that claims for

"workers' compensation” are not subject to arbitration.

But, as CHG-Bellaire points out, scope questions are delegated to the

arbitrator, not the courts. The EIBP and the EDRA both require that any question

about whether claims are subject to arbitration be resolved by the arbitrator. The

EIBP states, "Any question as to the arbitrability of any particular claim shall be

arbitrated pursuant to the procedures set forth in this Agreement.” The EDRA

similarly provides, "the exclusive authority to resolve any question as to the

arbitrability of a dispute and/or any dispute relating to the interpretation,

applicability, enforceability, or formation of this Agreement.” The express language

of the agreements refers arbitrability issues to the arbitrator. See Robinson, 590

S.W.3d at 532 n.78. So we do not answer the question of whether Johnson's claims

fall within the scope of the arbitration agreements.

Outcome:
We reverse the trial court’s order and we remand this case for entry of an

order compelling arbitration followed by dismissal.
Plaintiff's Experts:
Defendant's Experts:
Comments:

About This Case

What was the outcome of CHG Hospital Bellaire, LLC v. Seketa Johnson?

The outcome was: We reverse the trial court’s order and we remand this case for entry of an order compelling arbitration followed by dismissal.

Which court heard CHG Hospital Bellaire, LLC v. Seketa Johnson?

This case was heard in <center><h3><b> Court of Appeals For The First District of Texas</b> <br> <br> <b><h3><i>On appeal from the 157th District Court of Harris County </i</center> </h3> </b></i>, TX. The presiding judge was Sarah Beth Landau.

Who were the attorneys in CHG Hospital Bellaire, LLC v. Seketa Johnson?

Plaintiff's attorney: Warren Thomas McCollum Charles T. Frazier Jr.. Defendant's attorney: Houston, TX - Best Personal Injury Lawyer Directory Tell MoreLaw About Your Litigation Successes and MoreLaw Will Tell the World. Re: MoreLaw National Jury Verdict and Settlement Counselor: MoreLaw collects and publishes civil and criminal litigation information from the state and federal courts nationwide. Publication is free and access to the information is free to the public. MoreLaw will publish litigation reports submitted by you free of charge Info@MoreLaw.com - 855-853-4800.

When was CHG Hospital Bellaire, LLC v. Seketa Johnson decided?

This case was decided on September 17, 2022.