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Dispute Resolution Keyed to Carbonneau, 8th Ed.
THI of New Mexico at Vida Encantada v. Lovato
Citation:
864 F.3d 1080 (2017)Facts
In May 2007, ninety-two-year-old Guadalupe Duran was admitted to THI’s nursing home in Las Vegas, New Mexico. Before admission, Duran’s daughter executed an Admission Agreement and an Arbitration Agreement on her behalf. During her stay, Duran fell several times, breaking her femur and hip during one fall. She suffered a stroke after surgery for these injuries and died less than five months after admission. The Arbitration Agreement stated it would be “governed by and interpreted under the [FAA]” and that disputes would be resolved “as provided by the National Arbitration Forum Code of Procedure or other such association.” After Duran’s death, her granddaughter Mary Louise Lovato, as personal representative of the estate, sued THI for wrongful death and other tort claims. THI successfully moved to compel arbitration. The arbitrator awarded Lovato $475,000 in compensatory damages and later awarded an additional $245,462.75 in costs and interest, applying the New Mexico Uniform Arbitration Act. THI challenged only the costs and interest award, arguing that the arbitrator exceeded his powers by applying the NMUAA when the Arbitration Agreement specified the FAA as governing law.
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