Stubits, D. v. Golden Gate National
1160 WDA 2015
Pa. Super. Ct.Jan 20, 2017Background
- Decedent Richard F. Dombrowski’s estate (Stubits, administratrix) sued multiple nursing-home defendants for wrongful death and survival actions arising from care at Golden Living Center–Western Reserve.
- Defendants moved to compel arbitration based on an arbitration agreement; plaintiffs opposed and filed preliminary objections seeking to prevent arbitration.
- The trial court overruled the defendants’ preliminary objections and refused to compel arbitration, relying on Pennsylvania Superior Court precedent holding Pa.R.C.P. 213(e) requires consolidation of wrongful death and survival actions for trial.
- This Court initially affirmed the trial court in a May 26, 2016 judgment order, but the Pennsylvania Supreme Court subsequently decided Taylor v. Extendicare, reversing the Superior Court rule.
- In Taylor, the Pennsylvania Supreme Court held Rule 213(e) conflicts with the Federal Arbitration Act (FAA) and is preempted; state courts must compel arbitration of claims subject to a valid arbitration agreement even if consolidation would promote judicial efficiency.
- On remand after Taylor, this Court reversed and remanded to allow the trial court to address fact-based defenses to the validity and enforceability of the arbitration agreement under generally applicable contract defenses and the FAA’s savings clause.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Pa.R.C.P. 213(e) prevents enforcement of arbitration for wrongful death and survival claims | Rule 213(e) requires consolidation, so arbitration should not be compelled | FAA preempts state procedural rules; arbitration must be enforced | FAA preempts Rule 213(e); consolidation rule cannot block arbitration |
| Whether state courts may refuse arbitration for judicial-efficiency reasons | Judicial efficiency (consolidation) justifies denying arbitration | FAA requires enforcement even at expense of efficiency | FAA controls; efficiency alone cannot defeat arbitration |
| Whether the arbitration agreement should be enforced without further factual inquiry | Plaintiffs contend the agreement is unenforceable or invalid | Defendants seek immediate enforcement under FAA | Case remanded for trial court to consider fact-based validity/enforceability defenses under general contract law and FAA savings clause |
| Standard/process on remand for assessing arbitration defenses | Plaintiffs entitled to litigate defenses | Defendants entitled to arbitration if agreement is valid | Remand for district court to resolve factual questions about validity/enforceability consistent with Taylor and FAA |
Key Cases Cited
- Taylor v. Extendicare Health Facilities, Inc., 147 A.3d 490 (Pa. 2016) (Pennsylvania Supreme Court holds Pa.R.C.P. 213(e) is preempted by the Federal Arbitration Act)
- Taylor v. Extendicare Health Facilities, Inc., 113 A.3d 317 (Pa. Super. 2015) (Superior Court decision applying Rule 213(e) to bar arbitration, later superseded by the Supreme Court)
