Thursday, October 27, 2011

Pacificare of Nevada v. Rogers, 127 Nev. Adv. Op. 71 (October 27, 2011)

Before the Court en banc. Opinion by Parraguirre.
In this appeal from denial of a motion to compel arbitration, the Nevada Supreme Court addressed two issues concerning arbitration clauses. Respondent Rogers was a Medicare recipient who received benefits through appellant Pacificare, with whom she executed contracts in 2007 and 2008. The 2007 contract contained an arbitration clause but the 2008 contract did not. The Court adopted the law commonly applied in other jurisdictions that an arbitration provision survives the expiration of a contract unless the clause is expressly rescinded. Furthermore, adopting the reasoning of the Ninth Circuit Court of Appeals in Do Sung Uhm v. Humana, Inc., 620 F.3d 1134 (9th Cir. 2010), the Court determined that the Medicare Act expressly preempts Nevada’s common law doctrine of unconscionability. As such, the Court concluded that the district court improperly denied the motion to compel arbitration. Reversed and remanded. (Kerry Doyle, Associate in the Reno office of McDonald Carano Wilson)