GGNSC ADMINISTRATIVE SERVICES, LLC, & others vs. JACKALYN M. SCHRADER, personal representative.
SJC-12714
Supreme Judicial Court of Massachusetts
February 27, 2020
Suffolk. October 4, 2019. – February 27, 2020.
Present: Gants, C.J., Lenk, Gaziano, Lowy, Budd, Cypher, & Kafker, JJ.
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GGNSC ADMINISTRATIVE SERVICES, LLC, & others1 VS. JACKALYN M. SCHRADER, personal representative.2
Nursing Home. Wrongful Death. Negligence, Nursing home, Wrongful death. Arbitration, Appeal of order compelling arbitration, Scope of arbitration. Consent. Uniform Arbitration Act.
Certification of a question of law to the Supreme Judicial Court by the United States Court of Appeals for the First Circuit.
John Vail, of the District of Columbia (David J. Hoey also present) for the defendant.
Joseph M. Desmond (Alex Harrington also present) for the plaintiffs.
The following submitted briefs for amici curiae:
Jennifer A. Creedon for Massachusetts Defense Lawyers Association.
Meryl D. Grenadier, William Avarado Rivera, & Kelly Bagby, of the District of Columbia, Eric M. Carlson of California, Steven Schwartz, & Rebecca J. Benson for AARP & others.
John J. Barter for Professional Liability Foundation, Ltd.
Robert E. Curtis, Jr., for Massachusetts Advocates for Nursing Home Reform, Inc.
LOWY, J. After the decedent
1. Factual and procedural background.
We recite the undisputed facts as established by the United States District Court judge in his decision granting the plaintiffs’ motion to compel arbitration under the Federal Arbitration Act.
Jackalyn Schrader brought the decedent, her mother, Emma Schrader, to the Golden Living Center Heathwood (Heathwood) in February 2013.5 Heathwood is part of a larger corporate structure known as GGNSC. When Jackalyn brought the decedent to Heathwood, an administrator handed Jackalyn a stack of paperwork. Heathwood did not condition admission of the decedent or caring for her upon the completion of all of the documents, some of which, including an arbitration agreement, were voluntary and clearly labeled as such.
On December 3, 2013, the decedent died in Heathwood‘s care. On February 4, 2016, Jackalyn brought a wrongful death action pursuant to
On March 15, 2016, GGNSC sued Jackalyn in the United States District Court for the District of Massachusetts to compel arbitration. Jackalyn opposed arbitration on two grounds. First, she contended that the arbitration agreement was both procedurally and substantively unconscionable. The Federal District Court judge held that the arbitration agreement was valid and not unconscionable.8
In the alternative, Jackalyn argued that the arbitration agreement could not bind the decedent‘s beneficiaries because they
The First Circuit certified two questions to us:
“1. Is the wrongful death claim of [the decedent‘s] statutory heirs derivative or independent of [the decedent‘s] own cause of action?
“2. If the answer to the first question does not resolve the issue presented to the federal court, is Jackalyn[‘s] wrongful death claim nonetheless subject to [the decedent‘s] Agreement that her ‘next of kin, guardian, executor, administrator, legal representative, or heir’ would arbitrate claims against GGNSC?”
Although we have addressed the first question in cases involving past iterations of our wrongful death statute, our law today is clearly unsettled on the matter and, although the parties raised the issue in Johnson v. Kindred Healthcare, Inc., 466 Mass. 779 (2014), we did not address it because we decided the case on different grounds. See id. at 788 n.14 (health care agent‘s decision to arbitrate disputes does not bind patient under health care proxy statute). Based on a plain reading of the wrongful death statute and our interpretation of common-law wrongful death actions over time, and in light of persuasive authority from other States, we determine that a wrongful death claim of a statutory beneficiary is derivative of the decedent‘s action and that the arbitration clause in question is enforceable.
2. Discussion.
a. Characterization of wrongful death claims as derivative or independent.
i. Under wrongful death statute.
The issue in this case cannot be understood without an explanation of the two approaches to an action for wrongful death, derivative and independent.
If we characterize claims of beneficiaries under a wrongful death statute as “derivative,” then the “wrongful death liability is but an extension of the decedent‘s personal injury claim.” Willis & Peverall, The “Vanishing Trial“: Arbitrating Wrongful Death, 53 U. Rich. L. Rev. 1339, 1352 (2019) (Willis & Peverall). This means that “the beneficiaries of the death action can sue only if the decedent would still be in a position to sue.” Ellis v. Ford Motor Co., 628 F. Supp. 849, 858 (D. Mass. 1986), quoting Restatement (Second) of Judgments § 46 comment c (1982) (Restatement). Courts that follow this interpretation emphasize “that the same tortious ‘conduct’ which caused the decedent‘s personal injury also undergirds the wrongful death action.” Willis & Peverall, supra at 1353. Under this view, because the wrongful death action is derivative of the decedent‘s rights, the decedent “enjoys [exclusive] rights over the wrongful death action such that he or she can agree to arbitrate that claim entirely.” Id.
On the other hand, if claims under a wrongful death statute are “independent,” then “the decedent‘s disposition of his personal injury claim would have no effect on the wrongful death claim. The situation would be as though the injured person and his beneficiary each had a separate legal interest in his life, assertable by separate action.” Ellis, 628 F. Supp. at 858, quoting Restatement, supra. Courts following this interpretation have held that “wrongful death liability does not concern recovery for personal injury at all or . . . any other claim that the decedent may have had against the tortfeasor.” Willis & Peverall, supra at 1354. The action “deals only with the economic effect the decedent‘s death had upon specific family members.” Id. Thus, the decedent would be without authority to bind beneficiaries like Jackalyn to arbitration for her wrongful death claims. See id.
Unlike with statutes giving rise to derivative claims, then, statutes giving rise to independent claims could have an inefficient application; if a nursing home resident signed an arbitration agreement and her nursing home injured her, she could bring only her negligence claim through arbitration. If she later died from those injuries, a statute giving rise to independent wrongful death claims would permit her executor to commence a wrongful death action in
ii. Common-law basis for wrongful death claims.
Jackalyn argues that our wrongful death statute,
no longer solely created by statute. Id. at 71, discussing Moragne v. States Marine Lines, Inc., 398 U.S. 375, 409 (1970). The defendant points to Gaudette as support for the proposition that our wrongful death jurisprudence, with its common-law foundation, is open to judicial control.
The defendant misunderstands our interpretation of
rights are derivative or independent, we look first to the statute and then, if the language
b. Wrongful death claims under G. L. c. 229, § 2 , as derivative.
i. Statutory history.
In 1840, Massachusetts was the first State to enact a wrongful death statute. See Willis & Peverall, supra at 1359. The Legislature set the foundation of the statute‘s modern iteration in 1946, by establishing liability for towns and common carriers whose negligence resulted in death. St. 1946, c. 614, § 1. The Legislature amended the statute in 1947, broadening the liability for “wilful, wanton, or reckless” behavior. St. 1947, c. 506, § 1A. In 1958, the Legislature enacted the language more or less as it stands today.12 St. 1958, c. 238, § 1. Section 2 of
“A person who (1) by his negligence causes the death of a person in the exercise of due care, or (2) by willful, wanton or reckless act causes the death of a person under such circumstances that the deceased
could have recovered damages for personal injuries if his death had not resulted . . . shall be liable in damages in the amount of: (1) the fair monetary value of the decedent to the persons entitled to receive the damages recovered, as provided in [
G. L. c. 229, § 1 ] . . . Damages under this section shall be recovered in an action of tort by the executor or administrator of the deceased.”13
ii. Plain language.
“When conducting statutory interpretation, this court strives to effectuate the Legislature‘s intent by looking first to the statute‘s plain language” (quotations and citation omitted). Plymouth Retirement Bd. v. Contributory Retirement Appeal Bd., 483 Mass. 600, 604 (2019). We consider the plain language of the section at issue by analyzing the statute as a whole. See id. at 605.
In 1958, the Legislature amended
The “under such circumstances” clause certainly modifies wrongful death actions brought based upon “willful, wanton, or reckless act[s].”
The language and structure of our wrongful death statute also reflects the derivative nature of claims brought under it. Under
iii. Evolving judicial interpretation.
We also find support for concluding that wrongful death claims brought under
Since the amendments to
iv. Other jurisdictions.
The wrongful death statutes in other jurisdictions and the judicial interpretations thereof augment our conclusion. See Doe v. Superintendent of Schs. of Worcester, 421 Mass. 117, 130 n.4 (1995). The majority of States conclude that where an action for the injuries causing the decedent‘s death “could not have been brought by the deceased, had he survived, . . . no right of action [for wrongful death] . . . can vest in the deceased‘s administrator or representative for the benefit of the beneficiaries” because “even though the right created by the statute is a new cause of action, it is still derivative and dependent on the continuance of a right in the decedent to maintain an action for his injury up to the time of his death.” 12 Am. Jur. Trials, Wrongful Death Actions § 16, at 344-345 (1966). The States following the majority rule do not provide express independent causes of action for the beneficiaries. See, e.g., Behurst v. Crown Cork & Seal USA, Inc., 346 Or. 29, 40 (2009) (en banc) (“Only the . . . personal representative may maintain an action under” wrongful death statute). See also In re Labatt Food Serv., L.P., 279 S.W.3d 640, 646 (Tex. 2009) (“While it is true that damages for a wrongful death action are for the exclusive benefit of the beneficiaries and are meant to compensate them for their own personal loss, the cause of action is still entirely derivative of the decedent‘s rights“). But see Ping v. Beverly Enters., Inc., 376 S.W.3d 581, 598 (Ky. 2012), cert. denied, 569 U.S. 954 (2013) (predispute arbitration agreement not enforceable against wrongful death claim where “wrongful death and survival actions are separate and distinct“); Gilloon v. Humana, Inc., 100 Nev. 518, 520 (1984) (wrongful death statute creates independent cause of action for heirs).
c. Other possible grounds for invalidating arbitration agreement.
i. Lack of consent.
A contract generally only binds those who consent to its terms (citation omitted). See Levy v. Levy, 309 Mass. 230, 234 (1941). Jackalyn argues that even if wrongful death claims are derivative, the arbitration agreement cannot control the decedent‘s beneficiaries because they never consented to its terms.15 We need not consider consent, however, because the cause of action for the injuries resulting in the decedent‘s wrongful death belongs to the decedent alone, and the decedent alone had the right to decide whether the beneficiaries must arbitrate those claims. The beneficiaries’ lack of consent is thus inconsequential.
ii. Contract defenses under Massachusetts Arbitration Act.
That we classify the wrongful death action as derivative is not necessarily dispositive of the question whether the arbitration agreement binds decedent‘s beneficiaries. We assess the validity of nursing home arbitration agreements pursuant to the Federal Arbitration Act,
As we found in Miller, 448 Mass. at 679-684, the facts here, as determined by the Federal District Court judge, demonstrate no fraud, duress, undue influence, or unconscionability. Heathwood allowed Jackalyn to study the documents for some time before signing, and there was no evidence that she did not assent to the terms of the arbitration agreement. The agreement also was not procedurally unconscionable, given that it clearly indicated, in bold-faced capital letters, that the agreement was not mandatory for continuing care or admission. The agreement further advised Jackalyn to read it carefully before signing, and Heathwood provided a thirty-day revocation period.16
3. Conclusion.
We answer the certified questions as follows. We conclude that claims of statutory beneficiaries under our wrongful death statute,
The Reporter of Decisions is to furnish attested copies of this opinion to the clerk of this court. The clerk in turn will transmit one copy, under the seal of the court, to the clerk of the United States Court of Appeals for the First Circuit, as the answer to the questions certified, and will also transmit a copy to each party.
