140 N.E.3d 397
Mass.2020Background:
- Emma Schrader was admitted to GGNSC's Golden Living Center – Heathwood; admission paperwork included a voluntary arbitration agreement defining “Resident” to include heirs, executors, and personal representatives.
- Jackalyn Schrader, the decedent’s daughter and power of attorney, signed the arbitration agreement on the decedent’s behalf but did not sign in an individual capacity.
- The decedent died in the facility’s care; Jackalyn, as personal representative, sued under G. L. c. 229, § 2 for wrongful death alleging negligent care (pressure ulcers leading to death).
- GGNSC filed in federal court to compel arbitration; the district court found the arbitration agreement valid and concluded the wrongful death claim was derivative, so beneficiaries were bound.
- The First Circuit certified two questions to the Massachusetts Supreme Judicial Court: whether wrongful death claims under G. L. c. 229, § 2 are derivative or independent, and, if unresolved by that answer, whether the arbitration agreement binds the statutory beneficiaries.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are wrongful death claims under G. L. c. 229, § 2 derivative of the decedent’s personal-action or independent for beneficiaries? | Schrader: The beneficiaries’ wrongful death claim is independent; the decedent could not bind them by signing an arbitration agreement. | GGNSC: The statute ties wrongful death recovery to harms the decedent could have sued on, making the beneficiaries’ claim derivative and therefore within the decedent’s power to arbitrate. | The Court held the statute creates a derivative cause of action; wrongful death claims are derivative of the decedent’s personal cause of action. |
| If derivative status does not resolve the dispute, is the arbitration agreement enforceable against the executor/beneficiaries? | Schrader: Agreement is unenforceable because beneficiaries did not consent and agreement may be procedurally/substantively unconscionable. | GGNSC: Agreement was voluntary, clearly labeled, included a revocation period, and is enforceable under state and federal arbitration law. | The Court held the specific arbitration agreement was enforceable; no fraud, duress, or unconscionability found, so the executor must arbitrate the wrongful death claim on behalf of beneficiaries. |
Key Cases Cited
- Gaudette v. Webb, 362 Mass. 60 (1972) (recognized common-law development of wrongful death but required adherence to statutory scheme)
- Johnson v. Kindred Healthcare, Inc., 466 Mass. 779 (2014) (discussed binding effect of patient-signed agreements and agency signatures)
- Miller v. Cotter, 448 Mass. 671 (2007) (declined to adopt per se invalidation of nursing-home arbitration agreements; applied contract-defense analysis)
- Moragne v. States Marine Lines, Inc., 398 U.S. 375 (1970) (Supreme Court recognizing evolution of wrongful death remedies)
- Sisson v. Lhowe, 460 Mass. 705 (2011) (explained that personal injury, wrongful death, and loss of consortium can derive from the same facts)
- Hallett v. Wrentham, 398 Mass. 550 (1986) (statutory structure requires executor to pursue claims for beneficiaries; wrongful death not independent)
- Ellis v. Ford Motor Co., 628 F. Supp. 849 (D. Mass. 1986) (framed the derivative vs. independent distinction for wrongful death claims)
- Beausoleil's Case, 321 Mass. 344 (1947) (held decedent cannot prevent statutory beneficiaries from exercising wrongful death rights)
