Marlon Granger v. Rent-A-Center, Inc.
503 S.W.3d 295
| Mo. Ct. App. | 2016Background
- Kenneth Johnson rented merchandise from Rent-A-Center (RAC) that included in-home delivery, setup, and service; RAC employees (including Eric Patton) regularly entered his home.
- Eric Patton, an ex-RAC employee who previously had in-home access to Johnson, allegedly gained entry posing as an RAC employee, assaulted and robbed Johnson; Johnson later died from his injuries.
- Johnson had earlier sued RAC for personal injuries, and signed rental agreements containing broad arbitration clauses; Johnson died while that case was on appeal.
- Marlon Granger (son/heir) filed a wrongful death suit under Mo. Rev. Stat. § 537.080 alleging RAC negligently hired, trained, supervised, and failed to warn customers after terminating Patton.
- RAC moved to compel arbitration and to stay proceedings, asserting the arbitration clauses in Johnson’s rental agreements apply to Granger via estoppel because Granger’s wrongful death claims rely on the contractual relationship.
- The trial court denied the motions; the Missouri Court of Appeals (W.D.) affirmed, holding wrongful death claims by heirs are independent and non-signatories cannot be compelled to arbitrate absent applicable estoppel facts.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Granger can be compelled to arbitrate wrongful-death claims based on arbitration clauses Johnson signed | Granger: wrongful-death claim is independent of decedent’s contract; he did not sign and is not bound | RAC: Granger is estopped from avoiding arbitration because his claim depends on the rental agreements and he seeks benefits from them | Court: Held for Granger — wrongful-death action is independent; no valid basis to bind non-signatory heir where he received no contractual benefit and does not rely on contract terms |
| Whether proceedings must be stayed pending arbitration appeal | Granger: no stay necessary because arbitration does not apply to him | RAC: stay necessary to preserve arbitration’s benefits during appeal | Court: Moot after denial of arbitration; stay properly denied |
Key Cases Cited
- Lawrence v. Beverly Manor, 273 S.W.3d 525 (Mo. banc 2009) (wrongful-death action is independent and heirs are not bound by decedent’s arbitration agreement)
- Netco, Inc. v. Dunn, 194 S.W.3d 353 (Mo. banc 2006) (arbitration compelled only by agreement; estoppel limited to cases where non-signatory received contract benefits)
- Nitro Distrib., Inc. v. Dunn, 194 S.W.3d 339 (Mo. banc 2006) (apply state contract law to arbitration agreements; benefits-based estoppel limitations)
- Finney v. Nat'l Healthcare Corp., 193 S.W.3d 393 (Mo. App. 2006) (heirs’ wrongful-death claims not bound by decedent’s arbitration agreement)
- Dunn Indus. Group, Inc. v. City of Sugar Creek, 112 S.W.3d 421 (Mo. banc 2003) (arbitration is a matter of consent; parties cannot be compelled absent agreement)