Facts

Valley View Health Care Inc., Stonebrook Convalescent Center, Lifehouse Parkview Operations LLC, Beverly Healthcare - California Inc., CF Modesto LLC, Avalon Care Center -Merced Franciscan LLC, and California Association of Health Facilities sued Ronald Chapman, Director of the California Dept. of Public Health, challenging the validity of California statutes and regulations to restrict skilled nursing facilities' arbitration of the Patients' Bill of Rights pursuant to the California Health and Safety Code.

Plaintiffs are licensed skilled nursing facilities. The California Association of Health Facilities is a nonprofit association that represents skilled nursing facilities

PLAINTIFFS' CONTENTIONS:
Plaintiffs alleged that the arbitration provision under the Patient's Bill of Rights was preempted by the Federal Arbitration Act, and were void because they prohibited skilled nursing facilities' arbitration agreements to cover claims arising out of the Patient's Bill of Rights. Plaintiffs also filed for summary judgment.

DEFENDANT'S CONTENTIONS:
Defendants sought summary judgment for lack of subject matter jurisdiction and for failure to state a cognizable claim.

Result

The court granted plaintiffs' motion for summary judgment, and declared the challenged arbitration laws invalid, unlawful, and preempted by the Federal Arbitration Act to the extent that they bar arbitration of Patient's Bill of Rights claims. Additionally, the court enjoined defendants from enforcing the challenged arbitration laws.