958 F.3d 93
1st Cir.2020Background
- Case arose after the First Circuit certified questions to the Massachusetts Supreme Judicial Court (SJC) about whether wrongful death beneficiaries are bound by a decedent's arbitration agreement.
- On Feb. 27, 2020, the SJC concluded wrongful death claims under G. L. c. 229, § 2 are derivative of the decedent's cause of action and that a decedent's arbitration agreement binds statutory beneficiaries; it also held the executor/administrator may be bound to arbitrate on beneficiaries' behalf.
- The district court had compelled arbitration; the parties submitted supplemental briefs to the First Circuit after the SJC decision.
- The appellant (Schrader) argued the SJC misread the statute, hinted the Federal Arbitration Act might be implicated, and asserted an Equal Protection claim; the First Circuit found these contentions either waived or meritless.
- The First Circuit held it is bound to follow the SJC's authoritative interpretation and affirmed the district court's order compelling arbitration; no costs were awarded.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the SJC's interpretation of Massachusetts law bind this Court? | SJC misread statute; Court need not accept if clearly wrong | State high-court interpretation controls; this Court must apply it | SJC's interpretation is controlling; Court must accept and apply it |
| Can the FAA justify rejecting the SJC's interpretation? | Appellant suggested FAA conflict | Appellees said no FAA-based argument was developed; issue waived | Appellant failed to develop a FAA argument; waived and not considered |
| Does the SJC's rule violate Equal Protection? | Appellant urged strict scrutiny and claimed prejudice to beneficiaries | Appellees argued no authority and that classification is rationally related to legitimate interests | Equal protection claim waived for lack of developed argument; alternatively meritless under rational-basis review |
| Do decedent's arbitration agreements bind statutory wrongful death beneficiaries and estate representatives? | Appellant: beneficiaries should not be bound; SJC decision is incorrect | Appellees: SJC held claims are derivative and arbitration binds beneficiaries and estate | SJC and First Circuit: wrongful death claims are derivative; decedent's arbitration agreement binds beneficiaries and estate/executor; arbitration compelled |
Key Cases Cited
- GGNSC Admin. Servs., LLC v. Schrader, 140 N.E.3d 397 (Mass. 2020) (SJC: wrongful death claims are derivative and decedent's arbitration agreement binds beneficiaries and estate)
- GGNSC Admin. Servs., LLC v. Schrader, 917 F.3d 20 (1st Cir. 2019) (First Circuit certified state-law questions to the SJC)
- Sanders v. Phoenix Ins. Co., 843 F.3d 37 (1st Cir. 2016) (federal courts must accept controlling interpretations of state law by a state’s highest court)
- United States v. Zannino, 895 F.2d 1 (1st Cir. 1990) (perfunctory or undeveloped arguments are deemed waived)
- U.S. Dep't of Agric. v. Moreno, 413 U.S. 528 (1973) (articulates rational-basis standard for equal protection review)