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Bauer, C. v. Golden Gate National
1252 WDA 2015
| Pa. Super. Ct. | Nov 7, 2016
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Background

  • Executrix Colleen M. Bauer sued Golden Gate for wrongful death and survival claims arising from the death of Irene Karlowicz, filing a complaint after a writ of summons.
  • Golden Gate moved (via preliminary objections) to compel arbitration based on an ADR agreement the decedent signed at facility admission; the trial court overruled those objections.
  • Executrix argued the ADR agreement was unenforceable on multiple contract-law grounds (incapacity, unconscionability, fraud, duress, undue influence, lack of consideration) and that wrongful-death beneficiaries were not bound by the decedent’s arbitration agreement.
  • The trial court relied on this Court’s prior decision in Taylor v. Extendicare and Pisano to deny severance/arbitration, holding wrongful-death and survival claims must be tried together in court.
  • On appeal, the Superior Court reversed the trial court’s order in light of the Pennsylvania Supreme Court’s subsequent decision in Taylor, holding the Federal Arbitration Act (FAA) preempts the state rule requiring consolidation, but remanded for a determination of the arbitration agreement’s validity under the FAA’s savings clause and general contract defenses.
  • Golden Gate’s separate argument that Pisano is preempted by the FAA was waived because it was not raised below or in the concise statement of errors.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the trial court erred by refusing to sever the survival action and compel arbitration of the survival claim Executrix: ADR agreement unenforceable; wrongful-death beneficiaries not bound; consolidation required Golden Gate: FAA preempts state rule; survival claims must be arbitrable and severable Reversed trial court; FAA preemption allows severance but court remanded for discovery and determination of ADR agreement validity under FAA savings clause
Whether all of plaintiff’s claims must be compelled to arbitration Executrix: ADR agreement invalid as to numerous contract defenses and public-policy concerns Golden Gate: All claims (including survival) should be arbitrated Court did not rule all claims must be sent to arbitration now; remanded so parties can litigate enforceability; Golden Gate’s broader Pisano preemption argument waived

Key Cases Cited

  • Taylor v. Extendicare Health Facilities, Inc., 113 A.3d 317 (Pa. Super. 2015) (addressed consolidation of wrongful-death and survival claims and remanded for inquiry on enforceability under FAA savings clause)
  • Pisano v. Extendicare, 77 A.3d 651 (Pa. Super. 2013) (held wrongful-death beneficiaries not bound by decedent’s arbitration agreement)
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Case Details

Case Name: Bauer, C. v. Golden Gate National
Court Name: Superior Court of Pennsylvania
Date Published: Nov 7, 2016
Docket Number: 1252 WDA 2015
Court Abbreviation: Pa. Super. Ct.