. Dayhoff, 86 F.3d at 1297. The tre. ), The Plaintiffs allege that David Phillips was "under the continual dominion and control of Defendant from January 6, 1997 through April 7, 1998 when CEDU allowed and directed Plaintiff, David Phillips, to take home visitation in Pennsylvania with Plaintiffs, Dianne and Robert Reibstein." In Pritzker, the Third Circuit relied upon agency theory to find that "because a principal is bound under the terms of a valid arbitration clause, its agents, employees, and representatives are also covered under the terms of such agreements." 1993) (arbitration clause enforceable by non-signatory sister corporation because non-signatory took part in alleged breaches of fiduciary duties). In Dayhoff, the plaintiff and another company were assignees to a License Agreement in which Dayhoff Inc. was granted the exclusive license to make and distribute candy in the United States. 's Resp. CEDU Educational Services, Inc., known simply as CEDU (pronounced seedoo), was founded in 1967 by Mel Wasserman and his wife Brigitta. Under Pennsylvania law, apparent agency is the "power to bind a principal which the principal has not actually granted, but which leads persons with whom his agent deals to believe that he has granted." The Plaintiffs, Dianne and Robert Reibstein, enrolled their son, David Phillips, in Rocky Mountain Academy. On April 11, 1998, David Phillips ran away from Dianne and Robert Reibstein's Pennsylvania home. At the time that this letter was sent, David Phillips had not been adjudicated of any criminal violation. In Barrowclough, the Third Circuit dealt with the issue of whether third party beneficiaries of a deferred payment program under the Employee Retirement Income Security Act, who were non-signatories to an arbitration agreement, could be compelled to arbitrate a settlement. The court stated that "agency theory is not applicable to the facts before us" because of the corporate relationship in the case. Id. ), Prior to choosing Rocky Mountain Academy, Plaintiffs aver that Dianne Reibstein had visited at least five other therapeutic high schools. at *2 (quoting 9 U.S.C. (See Compl.) Supplement R., Exs. Pure ruralness, freezing winters, white trash society. In 1975, the New York Times reported that many of the academy's students would prefer to attend racially integrated public schools, but were not permitted to do so by their parents. A.) C D.) Therefore, both the Contract and the arbitration clause intended to include David Phillips based on his third-party beneficiary status. 752 F.2d 923. While it was at the height of its wealth and power, the Archbishop of Cologne (who ruled over the city) demanded greater taxes. """ Lon had worked as the admissions director at the CEDU program, Rocky Mountain Academy, in Bonners Ferry, Idaho, and decided that he could better help parents find the most . Kevin was enrolled in three of these programs; Rocky Mountain Academy, Ascent, and Northwest Academy. In fact, "[t]he FAA was enacted to reverse longstanding judicial hostility to arbitration agreements by placing them on the same footing as other contracts." . Rocky Mountain Academy was one of the largest employers in Boundary County during the period, diversifying its timber and agriculture economy. (Compl., 10.) Billings, Montana. "Under Pennsylvania law, a party is an intended third-party beneficiary if `both parties to the contract express an intention to benefit the third party in the contract itself,' Stone v. Pennsylvania Merchant Group, LTD., 949 F. Supp. 208-265-0607 or 208-255-6920/cell
[email protected] (Feb. 10, 2005) NAPLES, Idaho - CEDU Education announces the closure of Rocky Mountain Academy in Naples, Idaho. at 13.) Recently, CEDU offered the Court a third version of the Contract where both CEDU and Dianne Reibstein signed the Contract. Thus, Dayhoff does not control an analysis of this case. "Over the past three years, the management of CEDU Education has labored tirelessly in the search for effective leadership for Rocky Mountain Academy and in implementing a curriculum that would deliver only the . The action involves three counts: breach of contract (Count I), misrepresentation (Count II) and negligence (Count III). Rocky Mountain Academy, which is operated by the Defendant CEDU ("CEDU"), is a private school located in Bonners Ferry, Idaho, that helps teenagers who have emotional, behavioral and academic difficulties. Thus, apparent agency is contingent upon the representation of the principal, and the justifiable reliance by a third person that the agent had the consent of the principal to act on his behalf. . Welcome to RMAE!
[email protected] Rocky Mountain Academy is pleased to unveil their enhanced curriculum designed to help adolescents who have traditionally been using drugs and alcohol as coping mechanisms. Id. Id. The court stressed the parent-subsidiary corporate structure and refused to apply agency logic to the relationship. The Fish Market In The Old Town, Cologne, North Rhine Westphalia, Germany Limited Edition Print by Yadid Levy Secondary Market Art 98-3257, 1999 WL 54563, at *2 (E.D.Pa. Sandvik AB, 220 F.3d at 104 (quoting ATT Techs., Inc. v. Communications Workers of Am., 475 U.S. 643, 648 (1986)) (citations omitted)). ), 4/12/2005: I Speak of Dreams (CEDU Closing: A Letter from former Rocky Mountain Academy staff Linda Shaffer), 4/12/2005: I Speak of Dreams (CEDU Timeline: 1960s-3/26/2005), 4/12/2005: Class Action Complaint (Worker Adjustment and Retraining Notification Act Violations), 4/12/2005: I Speak of Dreams (Wall Street Journal Surveys Therapeutic Boarding Schools), 4/13/2005: I Speak of Dreams (CEDU Closing: 1990 Snapshot of McCown DeLeeuw), 4/13/2005: Woodbury Reports (Chuck Selent, formerly the Northwest Regional Manager of Special Services for CEDU Family of Services and The Brown Schools, announced that he has joined with Roy Negrete, President of AES-CA, Inc., to form AES Northwest, Inc.), 4/14/2005: I Speak of Dreams (CEDU Closing: McCown DeLeeuw Sued), 4/14/2005: I Speak of Dreams (CEDU Closing: George Lockers Criticisms), 4/22/2005: Woodbury Reports (Educational Consultants Make Special Offers to CEDU Parents), 4/23/2005: I Speak of Dreams (Independent School Governance), 4/27/2005: I Speak of Dreams (CEDU Closing: Chief Executive Officer of CEDU Education Pete Talbott's Background), 5/1/2005: Youth Today (How Brown Sank to Red: Brown Schools Bankruptcy), 5/8/2005: I Speak of Dreams (CEDU Closing: School Sites, Buildings, Contents to be Auctioned), 7/26/2005: Woodbury Reports (Former Academic Director of Boulder Creek Academy Dr. Marjorie Timms facilitates Nonviolent Communication Workshops in Bonners Ferry, ID), 8/11/2005: Woodbury Reports (Former Rocky Mountain Academy Staff Turned Educational Consultant Linda Shaffer Looks Forward to CEDU Reopening Under New Ownership), 8/17/2005: The New York Times (A Business Built on the Trouble of Teenagers), 8/18/2005: I Speak of Dreams (The Business of Troubled Teens), 8/18/2005: I Speak of Dreams (CEDUs Idaho Properties Sold to Universal Health Services and California Properties Sold to Chabad of Los Angeles), DC Health Justice Coalition (Universal Health Services Behind Closed Doors: The Hidden Harm of Maximizing Profits), 10/7/2005: Woodbury Reports (Universal Health Services reopens Ascent), 10/30/2006: Woodbury Reports (Christy Slate Leach worked at Cascade School, Rocky Mountain Academy, Northwest Academy, and San Cristobal Ranch Academy), 2007: Brainwashed (a song based on CEDU written by Alia Weiner), 1/5/2007: I Speak of Dreams (Universal Health Services Reopens Boulder Creek Academy and Northwest Academy), 1/8/2007: Student v. San Mateo Union High School District (Ascent, CEDU School, Mount Bachelor Academy), 7/13/2007: Idaho Transportation Department (Oly Lee Morris Sentenced to Jail for the Death of Former Rocky Mountain Academy Staff Dan Krmpotich), 8/23/2007: LiveJournal (Cult Survivors: CEDU), 4/22/2008: LiveJournal (Shardwolf: Ascent, part 2, St. Pauls and King George School), 4/24/2008: United States Bankruptcy Court for the District of Delaware (The Brown Schools files Chapter 7), 4/24/2008: Casetext (In re Brown Schools), 5/9/2008: Woodbury Reports (Dozens of Children Helped by Friends of Families Foundation), 10/8/2008: Surviving CEDU, clip 1 (Welcome to CEDU: a documentary by Liam Scheff), 10/8/2008: Surviving CEDU, clip 2 (Come Smush With Me: a documentary by Liam Scheff), 10/8/2008: Surviving CEDU, clip 3 (Raps: a documentary by Liam Scheff), 10/10/2008: Surviving CEDU, clip 4 (Propheets: a documentary by Liam Scheff), 10/12/2008: Woodbury Reports (Former Rocky Mountain Academy Graduate Jacqueline Gubers Wilderness Program New Horizons Shuts Down), 2/10/2009: Surviving CEDU, clip 5 (Who is Mel Wasserman? In most cases, a party has a right to a jury trial on this issue. ), 5/29/2012: The Orange County Register (O. C. Child Killer James Crummels Twisted Road to Death Row), 5/30/2012: Orange County Register (O. C. Child Killer James Crummel Hangs Himself on Death Row), 5/30/2012: Reuters (James Crummel Used Cord to Hang Himself in Death Row Cell), 5/30/2012: Los Angeles Times (Child Molester who Hanged Himself Called Most Evil Person), 6/1/2012: ABC Eyewitness News (Convicted Killer James Lee Crummel Commits Suicide Before Disclosing Information in San Bernardino Cold Case), 6/5/2012: OC Weekly (James Lee Crummels Death Row Suicide Gives No Closure to Family of Missing Victim), 6/7/2012: Orange County Register (Mom v. Child Killer: Guess Who Won? Lori Rist, Fitzgeralds assistant at Northwest Academy, will take over as the new head of school. In Pennsylvania, there are four types of agency: (1) express authority; (2) implied authority; (3) apparent authority; and (4) agency by estoppel. The next day, Dianne Reibstein telephoned Patricia Doyle at CEDU and explained the circumstances of David Phillips' arrest. ), 10/1/2013: Join the Human Race by City Rain (a song about CEDU by former Northwest Academy student Ben Runyan), 12/9/2013: Bonners Ferry Funeral Home (Former Rocky Mountain Academy Staff and Founder of Boundarylines Crisis Intervention Richard Alan Armstrongs Obituary), 8/3/2015: Woodbury Reports (Ascents name is changed to Caribou Ridge Intervention), 5/30/2016: Ersjdamoo's Blog (Strange Idaho), 10/2016: Just Another Hike (Ascent described by Joel), 11/3/2016: The Spokesman-Review (Former Rocky Mountain Academy Staff Fred Thompsons Obituary), 3/29/2017: NewsBF (Former Rocky Mountain Academy Director Scott Addison Charged with 25 Felony Counts after Multiple Women Accused him of Sexual Assault and Attempted Blackmail), 7/3/2017: Bonners Ferry Funeral Home (Former Northwest Academy Nightwatch Karen Kay Cartwrights Obituary), 9/27/2017: Duncan Trussell Family Hour Podcast (CEDU School described by Adam Eget), 10/24/2017: Im Not OK, Cupid (Part III of Rock Bottom: My Year in a Cult), 11/17/2017: Im Not OK, Cupid (Part IV of Rock Bottom: My Year in a Cult), 4/18/2018: Woodbury Reports (First Impressions of RMA), 4/19/2018: Woodbury Reports (The Rocky Mountain Academy Experience), 5/23/2018: Woodbury Reports (Former Rocky Mountain Academy Staff turned Educational Consultant Lon Woodbury interviews Former CEDU Staff Bill Lane about Synanon and CEDU), 6/25/2018: Medium Anonymous (Running My Anger: The Legacy of CEDU Cult by David Safran), 7/13/2018: Medium Anonymous (Update 1: Calling Brigitte Wasserman by David Safran), 8/22/2018: Woodbury Reports (Northwest Academy to Close), 8/23/2018: Medium Anonymous (Update 2: Northwest Academys Second Closure by David Safran), 10/17/2018: Medium Anonymous (Update 3: Keeping That CEDU Dream in 2018 by David Safran), 11/9/2018: Woodbury Reports (Former Rocky Mountain Academy staff turned Educational Consultant Lon Woodbury discusses CEDUs name and medicating students with former CEDU staff Bill Lane), 12/13/2018: YouTube (Crystal Gantt begins recording videos describing her experience at CEDU School), 1/18/2019: Medium Anonymous (In general, we were treated the same: An Interview with CEDU Counselor, Randolph Reynolds by David Safran), 1/19/2019: ABC News (New Clues Emerge 15 Years After Teen's Disappearance: 'We Just Want To Know He's Safe,' Family Says), 3/5/2019: Simply Dark Podcast, season 1, episode 2 (Magda Simply describes CEDU), 3/31/2019: San Bernardino County Sun (Obituary: Bill Lane 1/20/1942-3/4/2019), 3/31/2019: The San Diego Union Tribune (Obituary: Bill Lane 1/20/1942-3/4/2019), 4/25/2019: Lakeview Funeral Home (Obituary: Greg Burton 9/27/1947-4/25/2019), 11/13/2019: Dissertations From the Desk of Suzuki Nathie (Abuse, Inc.: The For-Profit Businesses Behind the Troubled Teen Industry), 12/22/2019: NPR Illinois (Far From Home Extra: Perspective From A CEDU Survivor by David Safran), 2/7/2020: California Southern Bankruptcy Court (Bill Lane and Associates File for Chapter 7 Bankruptcy), 5/26/2020: The Joe Rogan Experience Podcast (CEDU School described by Adam Eget), 6/3/2020: The Lost Kids Podcast (UCP Audio investigates Daniel Yuens disappearance from CEDU Schools campus on February 8, 2004), 6/8/2020: Oxygen (California School For 'Troubled Teens' Had Roots In A Notorious, Militant Cult), 6/9/2020: Inside Edition (What Happened to Daniel Yuen? ; Barrowclough, 752 F.2d 923. at 1297, 7 F.3d 1110. Id. (Pls.' . The next issue regarding the arbitration clause which this Court must address is whether the clause can be enforced against non-signatories, specifically Robert Reibstein and David Phillips. ), 4/4/2005: I Speak of Dreams (CEDU Closing: Reaction from Running Springs Area), 4/4/2005: I Speak of Dreams (CEDU Closing: An Alumnus Pleads, Save CEDU), 4/4/2005: Woodbury Reports, issue #128 (Closing a School: CEDU), 4/4/2005: Woodbury Reports (Bill Lane has announced that he has incorporated his own adolescent transport service company under the name Bill Lane and Associates, Inc.), 4/6/2005: I Speak of Dreams (CEDU Closing: Its Your Fault, No it is YOUR Fault, Oh, Lets Blame it on Them), 4/6/2005: I Speak of Dreams (CEDU Closing: 310 Employees Stiffed on Wages), 4/7/2005: I Speak of Dreams (CEDU Closing: Impact on Employees Devastating), 4/7/2005: I Speak of Dreams (CEDU Closing: Families Provide for Boulder Creek Academy Staff), 4/7/2005: Woodbury Reports (CEDU Education-Here Forever), 4/7/2005: Woodbury Reports (CEDU Crisis Could Mean Opportunity, or? In accordance with its general policy favoring the enforcement of arbitration agreements, the FAA mandates that district courts shall consider written arbitration agreements as "valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract." Supplement R., Ex. Id. Id. at *3. "I want to assure everyone that CEDU Education is committed to the parents, students, and faculty of Rocky Mountain Academy and to providing the best education to our students," said Condas. Mot. . . Also, Bill Valentine, Director of Adult Education, has a new outdoor wilderness workshop for parents with parents on the ropes course, Alpine Tower, hikes, and more. Supplement R., Ex. Id. Mem. After reviewing the Complaint and supplemental documents, it appears that the Plaintiffs admit that Dianne Reibstein acted as Robert Reibstein's agent when the Plaintiffs argue that Mr. Reibstein has standing in this action; however, the Plaintiffs appear to directly contradict that position when such a finding requires Robert Reibstein to submit to arbitration. Mem. With Universal Health Services (UHS) winning the bid for the now empty CEDU Education buildings in north Idaho, it appears that the future is looking bright for the students, parents and former staff of CEDU and the therapeutic schools industry. By former CEDU School student turned staff Scott Canter), 9/1999: Woodbury Reports, issue #61 (Rob Spear announced the formation of a new company he calls Deliberate Directions. Spear, an administrator for the CEDU School for more than ten years, including serving as President of the Corporation, has resigned from CEDU to develop this start-up. In Dayhoff, the Third Circuit primarily distinguished its decision based on the parent-subsidiary corporate structure of the parties. Location: The Rhineland / North Rhine-Westphalia / Rhine-Ruhr Metropolitan Area. Such agreements were entered into and signed by the trustees and the brokerage firm, however, neither the sister corporation nor the individual broker signed the agreement. at 19.) Dayhoff Inc., 86 F.3d at 1296-97 (citingBarrowclough v. Kidder, Peabody Co., Inc., 752 F.2d 923, 938 (3d Cir. 2). the circumstances indicate that the promisee intends to give the beneficiary the benefit of the promised performance.'" On or about April 5, 2000, Dianne and Robert Reibstein, along with David Phillips, brought this action against CEDU. As David Phillips' step-father, Robert Reibstein's concern for his step-son David's well-being caused him to adhere to virtually all of the terms of the Contract that his wife signed as his agent. The Third Circuit compelled the non-signatory beneficiaries to arbitrate because "the non-parties to th[e] arbitration agreement have related and congruent interests with the principals to the litigation. Pennsylvania. Id. (Compl., 7.) 2 Summit Workshop Scripts, Notes, and Info by David Safran), 4/13/2021: PBS (American Experience: Ruby Ridge). For the following reasons, the Motion to Compel Arbitration is granted. Presumably sites such as the CEDU or Brown Schools websites were the source and have subsequently disappeared. Restaurants in Cologne. Also, Plaintiffs allege that before Dianne Reibstein was to retrieve her son, CEDU sent an informational catalog and application by mail. Id. (Id. ), 4/2/2005: I Speak of Dreams (Brown Schools Prepares to Sell CEDU), 4/2/2005: Woodbury Reports (Too Little Too Late: The Spokesman-Review reported the Teachers Insurance and Annuity Association of America, a primary lender for CEDU Schools, arranged for a $1.5 Million loan for emergency temporary operations of the schools through April 22. Court documents indicate the reason for the emergency loan was without it operations "will cease immediately and the Trustee would be compelled to force the remaining students to vacate the premises immediately thereby causing serious and irreparable harm," Some staff say if they had known this Friday, they might have been able to remain operating, instead of sending all the kids home. at 938. Initially, the Plaintiffs offered the Court only the second page of the Contract signed solely by Dianne Reibstein and the Plaintiffs argued that the Contract was insufficient in its terms and, therefore, was invalid. Montgomery County v. Microvote Corp., 2000 WL 341566, at *4 (E.D.Pa. (Id. at *1122 (citing Isidor Paiewonsky Assocs., Inc. v. Sharp Properties, Inc., 998 F.2d 145, 155 (3d Cir. (Compl., 33.) Id. Aug. 16, 1988)). However, Barrowclough and Pritzker, the cases cited in Dayhoff, more closely resemble this case and therefore they are controlling due to their treatment of close relationships and agency.Id. Id. Id. Rocky Mountain Academy, which is operated by the Defendant CEDU ("CEDU"), is a private school located in Bonners Ferry, Idaho, that helps teenagers who have emotional, behavioral and academic difficulties. Id. Whiteout. As demonstrated above, Dayhoff dealt with a parent-subsidiary corporate relationship. Supplement R., Exs. ), 6/1999: Woodbury Reports, issue #58 (Jude Rudolph is now a Regional Business Development Representative for Aspen Youth Services, located in the Denver Colorado office. ), 7/1999: Woodbury Reports, issue #59 (On June 19, 1999, CEDU Family of Services had their first CEDU Alumni Reunion in Newport Beach California. Robert Reibstein is David Phillip's step-father. ), 4/2/2005: Woodbury Reports (CEDU 401K Can Not Be Accessed), 4/3/2005: I Speak of Dreams (CEDU Closing: Bankruptcy Trustee Slams Door Closed, Then Open), 4/3/2005: Woodbury Reports (CEDU School Bankruptcy and Closing), 4/3/2005: I Speak of Dreams (CEDU Closing Shocks Former Rocky Mountain Academy Staff Turned Educational Consultant Lon Woodbury), 4/3/2005: I Speak of Dreams (CEDU Closing: A Parents View), 4/4/2005: I Speak of Dreams (CEDU Closing: Who Are The Principals? at *7 (citing L M Beverage, 1988 WL 85670, at *15 (citations omitted)). ; 752 F.2d 923; 7 F.3d 1110. CIV.A. Under Pennsylvania agency law, this Court finds that Dianne Reibstein acted as Robert Reibstein's agent under both apparent agency theory and implied agency theory. (Id.) In so doing, the court found that both of the relationships were sufficiently close to require arbitration. Based on these facts, I find that Robert Reibstein's interests are directly related, if not congruent to those of his agent, Dianne Reibstein. Pritzker, 7 F.3d 1110. Patricia Doyle "specifically assured" Dianne and Robert Reibstein that CEDU "would do whatever it took to see David get back to their program and to complete their program (which was a 30-month program). The opening of Rocky Mountain Academy in 1982 helped . Rocky Mountain Academy, which opened in 1982, was the first CEDU emotional growth boarding school in North Idaho, and the catalyst to an industry of behavioral schools for troubled teens in. 'The Lost Kids' Podcast Explores Missing Teen and 'Tough Love' Boarding Schools), 6/10/2020: Salon (Where's Daniel Yuen? 1993)). Mem. to Dismiss at 5-6. The Third Circuit differentiated Dayhoff from Barrowclough based on the facts of those cases. In fact, "[t]he FAA was enacted to reverse longstanding judicial hostility to arbitration agreements by Abdurahman v. Prospect CCMC, LLC. Rocky Mountain College. Id. I went there during the Rocky Mountain Academy, CEDU/ Brown schools iteration. Subsequently, in phone conversations with Patricia Doyle, the Reibsteins expressed their unhappiness with CEDU's "neglect" in failing to provide them with all of the information known by CEDU before sending David Phillips home for visitation. Applying third-party beneficiary logic, David Phillips' interests are congruent to the interests of his mother. Dismiss at 8.) (Pls.' DISCUSSION. (Id.) Robert Reibstein is David Phillip's step-father. The Plaintiffs argue that David Phillips is not bound by the arbitration clause because he did not sign the Contract. In this case, Robert Reibstein's interests are directly related, if not congruent with, the interests of Dianne Reibstein. CEDU was aware of the desires and needs of David Phillips and Dianne Reibstein and offered its help for a monetary sum. (Id.) On or about June 15, 1998, without an explanation, Dianne and Robert Reibstein received a one-page faxed letter informing them that David Phillips was ineligible to be re-admitted to Rocky Mountain Academy. Supplement R., Exs. 2000). As noted in Pritzker, "arbitration agreements may be upheld against non-parties where the interests of such parties are directly related to, if not congruent with, those of a signatory."
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