Raber v. Emeritus at Marietta
49 N.E.3d 345
Ohio Ct. App.2016Background
- Monna Ann Raber lived at Emeritus at Marietta (facility owned by HCP EMOH, LLC; operated by Emeritus Corporation) and signed a resident agreement containing a broad predispute arbitration clause that declared it governed by the Federal Arbitration Act (FAA).
- Raber died; her sons, David and Thomas Raber, as co-executors and beneficiaries, sued Emeritus entities alleging negligence, statutory/regulatory violations, wrongful death, survivorship, and punitive damages.
- Emeritus moved to stay proceedings and compel arbitration. The trial court held most claims arbitrable and sent them to arbitration but denied arbitration and a stay for the wrongful-death claims, ruling beneficiaries cannot be bound by the decedent’s arbitration agreement.
- Emeritus appealed, arguing (1) the FAA preempts Ohio law (Peters) and requires arbitration of wrongful-death claims signed only by the decedent, and (2) even if some claims are non-arbitrable, R.C. 2711.02(B) requires staying the entire case pending arbitration of arbitrable claims.
- The appellate court agreed with Emeritus only on the stay issue: it held Peters remains good law (decedent cannot bind beneficiaries), but R.C. 2711.02(B) requires a stay of the entire action while arbitrable claims are arbitrated.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the FAA preempts Ohio law (Peters) so that wrongful-death claims must be arbitrated under the decedent’s signed agreement | Rabers: Peters controls; a decedent cannot bind beneficiaries to arbitrate wrongful-death claims | Emeritus: Marmet and the FAA preempt Peters; FAA displaces state rules that bar arbitration of wrongful-death claims | Held: Peters not preempted by FAA; beneficiaries not bound by decedent’s arbitration agreement |
| Whether the trial court must stay the entire proceeding (including non-arbitrable wrongful-death claims) pending arbitration of arbitrable claims under R.C. 2711.02(B) | Rabers: Staying wrongful-death claims would impede meaningful discovery and fairness; court should allow those claims to proceed | Emeritus: Statute and precedent require a stay of the entire action when any issue is referable to arbitration | Held: R.C. 2711.02(B) mandates staying the entire proceeding pending arbitration of arbitrable claims; trial court erred by not staying wrongful-death claims |
Key Cases Cited
- Peters v. Columbus Steel Castings Co., 873 N.E.2d 1258 (Ohio 2007) (a decedent cannot bind beneficiaries to arbitrate wrongful-death claims)
- Marmet Health Care Center, Inc. v. Brown, 132 S. Ct. 1201 (U.S. 2012) (state categorical bans on pre-dispute arbitration of certain claim types conflict with FAA)
- AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (U.S. 2011) (FAA preempts state rules that bar arbitration of a particular type of claim)
- Arthur Andersen LLP v. Carlisle, 556 U.S. 624 (U.S. 2009) (FAA does not displace background state-law contract principles about who is bound by arbitration agreements)