274 F. Supp. 3d 1249
N.D. Okla.2017Background
- Decedent Janice Ipock was a resident at ManorCare; her husband Duncan signed an arbitration agreement in his representative capacity in December 2014; Janice died February 10, 2015.
- Brian Ipock (son and special administrator) sued ManorCare in federal court (diversity) alleging negligence and wrongful death and attached a 2015 Oklahoma State Department of Health investigative report.
- ManorCare moved to dismiss for failure to attach an affidavit of merit under Okla. Stat. tit. 12, § 19.1, or alternatively to compel arbitration under the agreement Duncan signed.
- Brian argued § 19.1 is inapplicable in federal diversity actions (or alternatively satisfied by the investigative report or unconstitutional) and that he is not bound by the arbitration agreement because he did not sign it.
- The court denied the motion to dismiss (holding § 19.1 is displaced by Fed. R. Civ. P. 8/9 under the Rules Enabling Act analysis) and granted in part and denied in part the motion to compel arbitration: negligence claim compelled; wrongful-death claim not compelled under Oklahoma law.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Applicability of Okla. Stat. tit. 12, § 19.1 in federal diversity suit | § 19.1 is a state procedural requirement that conflicts with Fed. R. Civ. P. 8/9 so it does not apply in federal court | § 19.1 applies and dismissal is proper for failure to attach an affidavit of merit | Rules 8/9 displace § 19.1 in diversity cases; motion to dismiss denied |
| Whether applying Rules 8/9 instead of § 19.1 violates the Rules Enabling Act | N/A (argued §19.1 conflicts with federal rules) | N/A | Applying Rules 8/9 does not violate the Rules Enabling Act under either Shady Grove test |
| Enforceability of arbitration agreement as to wrongful-death claim | Brian (plaintiff) did not sign and wrongful-death beneficiaries cannot be bound by decedent’s pre-death representative signature | ManorCare seeks to enforce the arbitration agreement against plaintiff despite lack of his signature | Under Oklahoma law (Boler), wrongful-death claims are not wholly derivative; plaintiff may not be compelled to arbitrate the wrongful-death claim |
| Enforceability of arbitration agreement as to negligence claim | Plaintiff did not sign and also raises a bald challenge to his father’s authority to sign | ManorCare produced the signed agreement; FAA favors arbitration and plaintiff must produce evidence creating a genuine factual dispute | Negligence claim is derivative of the decedent’s claim and Duncan’s signed agreement covers it; arbitration compelled for negligence claim |
Key Cases Cited
- Shady Grove Orthopedic Assocs., P.A. v. Allstate Ins. Co., 559 U.S. 393 (2010) (Rules Enabling Act/choice-of-test framework for conflicts between federal rules and state laws)
- AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (2011) (FAA creates liberal federal policy favoring arbitration)
- Arthur Andersen LLP v. Carlisle, 556 U.S. 624 (2009) (state contract principles govern who is bound by arbitration agreements)
- Garman v. Campbell Cnty. Sch. Dist. No. 1, 630 F.3d 977 (10th Cir. 2010) (applying Shady Grove analysis re: federal rules displacing state pleading requirements)
- Jones v. United Parcel Serv., Inc., 674 F.3d 1187 (10th Cir. 2012) (analyzing Rules Enabling Act and Rule 23/Shady Grove issues)
- Boler v. Security Health Care, LLC, 336 P.3d 468 (Okla. 2014) (Oklahoma Supreme Court: wrongful-death claims accrue to beneficiaries and cannot be bound by decedent’s pre-death agreements)