Collins, A. v. Manor Care Lancaster
Collins, A. v. Manor Care Lancaster No. 762 MDA 2014
| Pa. Super. Ct. | Feb 13, 2017Background
- Decedent Richard A. Collins died after being a resident at a ManorCare-operated nursing home; his estate (executor Andrew Collins) sued ManorCare and related entities for claims under the Wrongful Death Act and the Survival Act.
- ManorCare moved to compel arbitration based on an arbitration agreement signed by the decedent.
- The trial court overruled preliminary objections to arbitration; this court previously affirmed that ruling relying on Taylor (Pa. Super. 2015) and Pisano (Pa. Super. 2013).
- The Pennsylvania Supreme Court granted allowance of appeal, vacated this Court’s prior affirmance, and remanded for proceedings consistent with its decision in Taylor v. Extendicare Health Facilities, Inc.
- On remand, this Court recognized that Taylor (Supreme Court) held that Pa.R.C.P. 213(e) (compulsory joinder of Survival Act and wrongful death claims) is preempted by the Federal Arbitration Act, so the joinder rule cannot bar arbitration.
- The Court therefore reversed, ordered the preliminary objections to compel arbitration sustained, required severance of wrongful death and survival claims, and remanded for the trial court to address contract-based defenses (e.g., forum availability of NAF, procedural/substantive unconscionability).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are wrongful death claims subject to a decedent’s arbitration agreement? | Estate argued wrongful death beneficiaries cannot be bound by decedent’s arbitration agreement (relying on Pisano). | ManorCare argued arbitration agreement governs and compels arbitration of related claims. | Court held wrongful death claims must be severed and arbitration compelled where federal law preempts Pa.R.C.P. 213(e); wrongful death beneficiaries may not be bound, so trial court must address severance and arbitration for Survival Act claim. |
| Does Pa.R.C.P. 213(e) permit compulsory joinder that defeats arbitration? | Estate contended Rule 213(e) requires joinder, preventing arbitration of Survival Act claims with wrongful death claims. | ManorCare argued FAA preempts any state rule that defeats arbitration. | Court held Rule 213(e) is preempted by the FAA (per Taylor), so it cannot defeat enforcement of arbitration agreements. |
| Are there contract defenses that could invalidate the arbitration agreement? | Estate argued the arbitration agreement is invalid because the designated forum (NAF) could not administer arbitration and that the agreement is unconscionable. | ManorCare disputed enforceability; argued the agreement is valid. | Court remanded for the trial court to address these contract-based defenses (fraud, duress, unconscionability, forum availability) consistent with the FAA savings clause. |
| Effect of Taylor (Pa. Supreme Court) on prior appellate ruling? | Estate relied on prior appellate precedent refusing to allow arbitration based on joinder rule. | ManorCare relied on Taylor (Supreme Court) to require enforcement of arbitration. | Court reversed its prior decision and remanded for further proceedings consistent with Taylor; arbitration preliminary objections must be sustained and claims severed unless contract defenses prevail. |
Key Cases Cited
- Pisano v. Extendicare Homes, Inc., 77 A.3d 651 (Pa. Super. 2013) (held wrongful-death beneficiaries cannot be bound by decedent’s arbitration agreement)
- Taylor v. Extendicare Homes, Inc., 113 A.3d 317 (Pa. Super. 2015) (addressed compulsory joinder under Pa.R.C.P. 213(e))