Carter v. SSC Odin Operating Co.
2011 IL App (5th) 070392-B
Ill. App. Ct.2011Background
- Joyce Gott resided in Odin Healthcare Center, operated by SSC Odin Operating Co., LLC, in Illinois.
- Joyce had two stays at the facility: May 20, 2005–July 29, 2005, and January 12, 2006–January 31, 2006, when she died.
- At the first admission, plaintiff Sue Carter, as Joyce's legal representative, signed a Health Care Arbitration Agreement; six days after Joyce's second admission, Joyce signed a second identical agreement; plaintiff did not sign the second agreement.
- The arbitration agreements state mutual arbitration, payment of certain fees, location choice, and that FAA governs; they also provide a $200,000 threshold for applicability.
- The agreements are separate (stand-alone) documents, purport to bind the parties, but contain a $200,000 cap excluding smaller claims, and Joyce's signature on the May 20, 2005 agreement is not binding on the wrongful death claim brought by the plaintiff as Joyce’s legal representative.
- Joyce died on January 31, 2006; plaintiff filed a two-count complaint on November 22, 2006 seeking survival and wrongful death claims; defendant moved to compel arbitration, which the circuit court denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether FAA applies to arbitration agreements | Carter argues FAA applies due to interstate commerce connection | Odin contends FAA governs as agreement evidences interstate commerce | Arbitration agreements evidence interstate commerce; FAA applies |
| Whether mutuality supports arbitration | Agreements lack mutuality because of $200k carve-out | Agreements sufficient mutuality; consideration exists | Arbitration agreements lack mutuality; unenforceable |
| Whether wrongful death claim is covered by arbitration | Plaintiff signed as Joyce's legal representative; wrongful death is independent | Arbitration should bind all related disputes | Wrongful death claim not bound by the agreements; not enforceable against plaintiff |
| Whether Joyce’s survival claim is subject to arbitration | Survival claim arises from Joyce's care; should be arbitrable | Survival claims are within arbitration scope | Survival claims are subject to arbitration; arbitation compelled |
| Whether plaintiff, as Joyce’s legal representative, binds herself personally to arbitration for wrongful death | Signature as Legal Representative binds personal wrongful death claim | Signature does not bind plaintiff personally for wrongful death | Plaintiff’s signature as Legal Representative does not bind wrongful death claim |
Key Cases Cited
- Vassilkovska v. Woodfield Nissan, Inc., 358 Ill. App. 3d 20 (2005) (mutuality lacking where arbitration is one-sided, separate contract requires consideration)
- Fosler v. Midwest Care Center II, Inc., 398 Ill. App. 3d 563 (2009) (arbitration agreement evidenced interstate commerce via Medicare/Medicaid payments)
- Curto v. Illini Manors, Inc., 405 Ill. App. 3d 888 (2010) (wrongful death claims by spouse not bound by resident arbitration agreements)
- Piehl v. Norwegian Old Peoples’ Home Society of Chicago, 127 Ill. App. 3d 593 (1984) (mutuality and consideration in arbitration agreements)
- Carrico v. Delp, 141 Ill. App. 3d 684 (1986) (mutuality and consideration essential for standalone arbitration agreements)
- Hofmeyer v. Willow Shores Condominium Ass’n, 309 Ill. App. 3d 380 (1999) (mutuality and consideration in bilateral agreements)