Knight v. Altercare Post-Acute Rehab. Ctr., Inc.
2017 Ohio 6946
| Ohio Ct. App. | 2017Background
- Decedent (Peggy Young) signed a residency agreement with Altercare including an arbitration clause; she died while a resident.
- Personal representative (Phyllis Knight, executrix) sent a letter invoking the arbitration clause for wrongful-death claims before filing suit.
- Altercare refused arbitration, arguing beneficiaries (who hold wrongful-death claims) did not sign and the wrongful-death statute of limitations had expired.
- Knight filed suit alleging negligence and breach of contract/intentional interference based on Altercare’s refusal to arbitrate.
- Trial court denied Altercare’s summary-judgment motion and stayed the action pending arbitration. Altercare appealed the stay and denial of summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the personal representative can compel arbitration of a wrongful-death claim under an arbitration agreement signed by the decedent | Knight: the residency agreement binds disputes "between the parties" and arbitration should resolve the wrongful-death claim; beneficiaries can agree to arbitrate | Altercare: wrongful-death claims belong to beneficiaries who did not sign the agreement; decedent could not bind them; statute of limitations on wrongful death expired | Court: Reversed stay — personal representative (and beneficiaries) cannot enforce decedent’s arbitration agreement to compel arbitration of wrongful-death claims when beneficiaries are nonsignatories and claim is legally independent and time-barred |
| Whether denial of summary judgment is a final, appealable order | Knight: not directly addressed; opposition to summary judgment | Altercare: appealed denial arguing claims barred by the statute of limitations | Court: Dismissed this part of the appeal for lack of jurisdiction — denial of summary judgment is not final and is reviewable only after a final judgment |
Key Cases Cited
- Peters v. Columbus Steel Castings Co., 115 Ohio St.3d 134 (Ohio 2007) (holding wrongful-death claims belong to beneficiaries and cannot be compelled to arbitration by an agreement signed only by the decedent)
- Hill v. Sonitrol of Southwestern Ohio, Inc., 36 Ohio St.3d 36 (Ohio 1988) (third-party beneficiary may be bound only where contractual performance satisfies a duty owed to the beneficiary)
- Trinity Health Sys. v. MDX Corp., 180 Ohio App.3d 815 (Ohio App. 2009) (discussing circumstances where nonsignatories may enforce arbitration agreements)
- Wascovich v. Personacare of Ohio, 190 Ohio App.3d 619 (Ohio App. 2010) (strong presumption favoring arbitration; courts resolve doubts in favor of arbitrability)
- McFarren v. Emeritus at Canton, 997 N.E.2d 1254 (Ohio App. 2013) (arbitration agreements generally not enforceable against nonsigning beneficiaries in wrongful-death claims)