2024 IL App (4th) 221030
Ill. App. Ct.2024Background
- Plaintiff, Thomas Key Sr., as administrator of Lois Key’s estate, sued Accolade Healthcare for nursing home negligence and wrongful death after Lois Key died at Accolade’s facility.
- Plaintiff’s complaint had three counts: Negligence under the Nursing Home Care Act and Survival Act, Wrongful Death, and funeral/burial expenses.
- Accolade moved to dismiss and compel arbitration, based on arbitration clauses in documents signed by Lois Key during her admission.
- Plaintiff argued that Illinois statutes prohibit arbitration of nursing home negligence claims and that wrongful death claims cannot be compelled to arbitration by agreements signed by the decedent.
- The trial court agreed with Accolade, dismissed all claims with prejudice, and compelled arbitration, finding federal law (the FAA) preempted Illinois law.
- Plaintiff appealed, challenging both the trial court’s application of the FAA and the scope of the arbitration agreement.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the FAA preempt sections 3-606, 3-607 of Nursing Home Care Act for these claims? | No; Accolade did not prove interstate commerce connection, so FAA does not apply, and state statutes bar arbitration. | Yes; the arbitration agreement states FAA applies and nursing homes are generally in interstate commerce. | No; Accolade failed to prove by affidavit that the contract evidenced a transaction involving commerce; so FAA does not apply and state law bars arbitration of counts I and III. |
| Is the wrongful death claim (count II) subject to arbitration? | No; under Illinois Supreme Court precedent, wrongful death is not an estate claim and not covered by decedent's arbitration agreement. | Yes; the agreement expressly binds heirs and representatives. | No; following Illinois Supreme Court precedent, wrongful death claims are not subject to decedent-signed arbitration agreements. |
| Was trial court right to dismiss and compel arbitration of all claims? | No; procedural and substantive law not met, and wrongful death claim cannot be compelled. | Yes; contract is enforceable and covers all claims. | No; reversal required. |
| Does contract factually show a nexus to interstate commerce? | No; Accolade presented no affidavit or evidence of interstate commerce in motion. | Yes, generally, by nature of business and acceptance of some federal program payments. | No; mere reference to FAA in contract is not dispositive—no evidence was provided to support the nexus. |
Key Cases Cited
- Carter v. SSC Odin Operating Co., 2012 IL 113204 (Ill. 2012) (FAA does not require arbitration of wrongful death claims signed only by decedent; FAA only preempts state law if contract evidences commerce, and Illinois statutes barring arbitration otherwise control)
- Clanton v. Oakbrook Healthcare Centre, Ltd., 2023 IL 129067 (Ill. 2023) (arbitration clauses in nursing home contracts should be enforced as written, but termination-on-death does not automatically invalidate arbitration if clearly severed in drafting)