McElroy v. Fairview Nursing Home
2:12-cv-00898
N.D. Ala.Oct 23, 2012Background
- Mary Webb signed a dispute resolution program contract upon admission to Fairview Nursing Home agreeing to arbitration and waiver of jury trial, with the agreement binding her estate and successors.
- Elizabeth McElroy, as Administrator of the Estate of Mary E. Webb, filed a wrongful death action on February 10, 2012, which the defendants removed to federal court.
- Defendants SSC Birmingham and Savaseniorcare moved to compel arbitration and stay the proceedings; the motion was fully briefed and ripe for resolution.
- The court previously allowed McElroy to present evidence regarding Webb's capacity to consent to arbitration, but McElroy did not introduce such evidence.
- The court applied Eleventh Circuit precedent to determine whether an executor is bound by the decedent’s arbitration agreement and concluded the executor is bound.
- Several defendants were dismissed for lack of service or failure to notify the court of service, and the remaining defendants were subject to arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Are the executor and estate bound to arbitrate the wrongful death claim? | McElroy argues decedent’s estate is not bound since Webb consent was personal. | SSC Birmingham/Savaseniorcare assert executor bound by decedent’s arbitration agreement. | Executor bound; arbitration compelled. |
| Should arbitration be compelled for dispute arising from the wrongful death claim? | Estate cannot compel arbitration over decedent’s claims; capacity issues unresolved. | Arbitration applies under the agreement and Alabama law. | Arbitration should be compelled and proceedings stayed. |
| What about service failures on other defendants? | Some defendants were properly served; others were not, affecting adjudication. | Lack of service warrants dismissal without prejudice. | Dismissal without prejudice for unserved defendants. |
Key Cases Cited
- Entrekin v. Internal Med. Assoc. of Dothan, 689 F.3d 1248 (11th Cir. 2012) (executor bound by decedent's arbitration agreement; wrongful death context)
- Briarcliff Nursing Home, Inc. v. Turcotte, 894 So.2d 661 (Ala. 2004) (arbitration agreements survive death)
- Carraway v. Beverly Enter. Ala., Inc., 978 So.2d 27 (Ala. 2007) (executor bound by decedent's contracts incl. arbitration)
- Tennessee Health Mgmt. v. Johnson, 49 So.3d 175 (Ala. 2010) (arbitration implications for estate claims)
- King v. Nat’l Spa & Pool Inst., Inc., 607 So.2d 1241 (Ala. 1992) (wrongful death statute remedies relevance)
- Blue Cross and Blue Shield of Ala., Inc. v. Nielsen, 116 F.3d 1406 (11th Cir. 1997) (final arbiter of state law on arbitration matters)