155 Wash. App. 919 | Wash. Ct. App. | 2010
¶1 Avalon Care Center — Federal Way LLC appeals an order denying in part its motion to compel arbitration of all claims asserted in this survival and wrongful death action. The wrongful death claims are based
¶2 On October 6, 2006, Henry Woodall was admitted to a facility run by Avalon that provides skilled nursing care. At the time of his admission, Henry
¶3 Henry died on July 28, 2007. Clifford Woodall and Sharon Woodall King are the children of Henry and his sole heirs (collectively heirs). Clifford is the personal representative of Henry’s estate.
¶4 Clifford, individually and as the representative of the estate, and Sharon King, individually, brought this action against Avalon under the wrongful death and survival statutes. They seek damages, attorney fees, and other relief.
¶5 Avalon moved to compel arbitration and to stay these court proceedings pending the outcome of the arbitration of all claims. The trial court ultimately granted Avalon’s motion to compel arbitration in part and denied it in part. The court concluded that the survival claims should be resolved through the contractually agreed arbitration process. But the court also concluded that the arbitration agreement did not apply to the wrongful death claims of the heirs. The trial court expressed its reluctance to split the proceedings to resolve the survival and wrongful death claims, stating that litigation “in two separate forums is inefficient, unfair and exposes [all parties] to the inherent
¶6 Avalon appeals.
ARBITRABILITY OF WRONGFUL DEATH CLAIMS
¶7 Avalon argues that the arbitration agreement between Henry and Avalon binds the heirs to arbitrate their wrongful death claims against Avalon. We disagree.
¶8 Whether a person is bound by an agreement to arbitrate is a legal question that is to be determined by the courts.
¶9 There are limited exceptions to the general rule that one who does not sign an arbitration agreement cannot be compelled to arbitrate.
¶10 Arbitrability is a question of law that we review de novo.
¶11 Here, the arbitration agreement that Henry and Avalon signed states:
RESIDENT AND FACILITY ARBITRATION AGREEMENT
(Not a Condition of Admission - Please Read Carefully)
. .. We agree to submit to binding arbitration for all disputes and claims for damages of any kind for injuries and losses arising from the medical care rendered or which should have been rendered after the date of this Agreement. All alleged claims for monetary damages against the facility, its owners, lessees, management organization, or their employees, officers, directors, agents, must be arbitrated including, without limitation, claims for personal injury from alleged negligence, gross negligence, malpractice, or any alleged claims based on any*925 departure from accepted medical or health care or safety standards, emotional distress or punitive damages.[12]
The agreement further provides:
We expressly intend that this Agreement shall bind all persons whose alleged claims for injuries or losses arise out of care rendered by the Facility or which should have been rendered by Facility after the date of this Agreement, including any spouse, children, or heirs of the Resident or Executor of the Resident’s estate.[13]
¶12 It is undisputed that Henry and Avalon were the only persons who signed the arbitration agreement. The heirs did not. Thus, the legal question is whether the heirs are required to arbitrate their wrongful death claims against Avalon where they were not parties to the agreement to arbitrate.
¶13 We begin our analysis by considering our supreme court’s recent observation in Satomi Owners Association v. Satomi, LLC
¶14 The court went on to identify “certain limited exceptions” to the general rule that a person who is not a party to an arbitration agreement may not be bound by such agreement.
¶15 Avalon does not rely on either the Quackenbush v. Allstate Insurance Co.
¶16 Avalon relies on Clay v. Permanente Medical Group, Inc.
¶17 That federal case, based on California law, determined that the plaintiffs were bound to an arbitration provision they did not sign because they asserted claims on behalf of the decedent’s estate, among other reasons.
¶18 We note also that Clay identifies a split of authority in California Court of Appeals cases over the question of binding persons who are not parties to an arbitration agreement to arbitrate claims:
Plaintiffs correctly identify a split in the California Courts of Appeals regarding the applicability of binding arbitration provisions to non-signatory adult heirs. Two lines of cases may apply. The first follows Rhodes v. California Hospital Medical Center, 76 Cal. App. 3d 606, 143 Cal. Rptr. 59 (1978); the second follows Herbert v. Superior Court of Los Angeles County, 169 Cal. App. 3d 718, 215 Cal. Rptr. 477 (1985). Though Plaintiffs identify the split, they fail to provide any reason the Court should follow one line of cases over the other in this matter.[27]
¶19 Because there is a split of authority within the California Court of Appeals on the question before us, Clay is not helpful in deciding this case. Moreover, the California Supreme Court has not, as of this writing, resolved this conflict within the lower appellate court.
¶20 Avalon does not identify any contract or agency principles that would bind the heirs to arbitrate based on the agreement between Avalon and Henry. Likewise, we are unaware of any such principles that would apply to this case.
¶21 Avalon also relies on Estate of Eckstein v. Life Care Centers of America, Inc.
¶22 But, as Woodall points out, other out-of-state authority can be read to support the conclusion that wrongful death claims are not subject to a decedent’s arbitration agreement. In Lawrence v. Beverly Manor,
¶23 Similarly, in Peters v. Columbus Steel Castings Co.,
¶24 Avalon also cites Townsend, a decision from this court.
¶25 Based on the above analysis, we conclude that Avalon has failed to establish that the heirs are bound to
¶26 Avalon relies on another argument to urge that the heirs are bound to arbitrate under an agreement they did not sign. That argument is based on its characterization of the wrongful death claims as “derivative.”
¶27 Examination of the nature of the claims asserted in this action is helpful in addressing this argument. Survival actions and wrongful death actions, though often brought together, are conceptually distinct.
¶28 In contrast, Washington’s general survival statute, RCW 4.20.046(1), does not create a separate claim for the decedent’s survivors, but merely preserves the causes of action a person could have maintained had he or she not died.
¶29 The trial court correctly applied these principles to this case. The court granted Avalon’s motion to compel arbitration to the extent of the survival claims. These claims are an asset of Henry’s estate. They originated as Henry’s “existing causes of action” which survived his death and “continue[d] ‘as an asset of his estate.’ ”
¶30 In addition, the court correctly denied the motion to the extent of the wrongful death claims asserted by the heirs against Avalon. These claims are exclusively for the
¶31 The personal representative of Henry’s estate is authorized to commence this action as the nominal party for the survival action.
¶32 Avalon claims that the heirs must arbitrate their claims because wrongful death claims are “derivative.” The answer to this is simple. In Johnson v. Ottomeier,
¶33 Avalon relies heavily on Ginochio v. Hesston Corp.
¶34 Avalon cites three areas of law unrelated to the question of arbitrability of claims that is before us to support its position: that wrongful death claimants are bound by enforceable liability releases, that this court “treats uniquely wrongful death claims,” and that the Industrial Insurance Act, Title 51 RCW, bars private claims by heirs and beneficiaries. None of these areas are helpful here.
¶35 Neither case Avalon cites on the issue of liability releases addresses the principles discussed in Satomi.
¶37 Finally, the bar on beneficiaries’ claims under the Industrial Insurance Act is also entirely statutory.
¶38 Avalon makes two policy arguments: first, actions based on the same set of facts should be litigated in the same forum to preserve fairness and judicial efficiency;
¶39 Both policy arguments are addressed by the rules stated in Satomi. The trial court reluctantly concluded that the claims had to be split into two forums. But, as the Satomi court observed, arbitration is a matter of contract.
¶40 The additional cases that Avalon discusses in its reply are also not persuasive of a different result. Both the Michigan Court of Appeals in Ballard v. Southwest Detroit Hospital
¶41 The Michigan Court of Appeals decided that an appointed personal representative “is bound by the arbitration agreement to the same extent the decedent would have been bound had she survived.”
¶42 Unlike the statutes at issue in Ballard and In re Labatt, Washington’s wrongful death statutes do not expressly condition a beneficiary’s wrongful death claims on the decedent’s right to maintain a suit for injuries.
¶43 We conclude that Henry’s heirs are not required to arbitrate their wrongful death claims against Avalon. They did not sign the agreement to arbitrate. Moreover, they are not bound to arbitrate by any of the recognized exceptions to the general rule that a nonsignatory to an agreement to arbitrate cannot be required to arbitrate.
f 44 We affirm the trial court’s order denying the motion to compel arbitration of the wrongful death claims by the heirs against Avalon.
¶45 The balance of this opinion has no precedential value. Accordingly, pursuant to RCW 2.06.040, it shall not be published.
Reconsideration denied July 16, 2010.
Pursuant to RAP 3.4, we direct the parties and the clerks of this court and the superior court to modify the caption on pleadings filed after the filing of this opinion to reflect that the plaintiff is “Clifford Wayne Woodall, as representative of the Estate of Henry Wayne Woodall.” This directive is based on our grant of the unopposed motion to dismiss, as plaintiffs, Clifford Wayne Woodall, individually, and Sharon G. Woodall King, individually.
We adopt the parties’ use of first names for clarity.
RAP 2.2(a)(3); Stein v. Geonerco, Inc., 105 Wn. App. 41, 43-44, 17 P.3d 1266 (2001); Herzog v. Foster & Marshall, Inc., 56 Wn. App. 437, 445, 783 P.2d 1124 (1989); RCW 7.04A.280(1)(a).
RCW 7.04A.060(2); Satomi Owners Ass’n v. Satomi, LLC, 167 Wn.2d 781, 809, 225 P.3d 213 (2009) (citing First Options of Chi., Inc. v. Kaplan, 514 U.S. 938, 944-45, 115 S. Ct. 1920, 131 L. Ed. 2d 985 (1995)); Townsend v. Quadrant Corp., 153 Wn. App. 870, 881, 224 P.3d 818 (2009).
Satomi, 167 Wn.2d at 810 (internal citations and quotation marks omitted) (quoting Howsam v. Dean Witter Reynolds, Inc., 537 U.S. 79, 83, 123 S. Ct. 588, 154 L. Ed. 2d 491 (2002)).
Id.
Id. (citing Quackenbush v. Allstate Ins. Co., 121 F.3d 1372, 1380-82 (9th Cir. 1997) (requiring claims of California insurance commissioner, asserted as trustee on behalf of insolvent reinsureds to recover insurance proceeds, to be arbitrated where reinsurance agreements contained arbitration clauses); Clay v. Permanente Med. Grp., Inc., 540 F. Supp. 2d 1101, 1110 (N.D. Cal. 2007) (holding plaintiffs were bound by terms of agreement, including arbitration provisions, entered by
Id. at 811 n.22 (alteration in original) (internal quotation marks omitted) (quoting Comer v. Micor, Inc., 436 F.3d 1098, 1101 (9th Cir. 2006) and citing Powell v. Sphere Drake Ins. PLC, 97 Wn. App. 890, 892, 988 P.2d 12 (1999)).
Id. (quoting Mundi v. Union Sec. Life Ins. Co., 555 F.3d 1042, 1045 (9th Cir. 2009)); Powell, 97 Wn. App. at 895-96 (citing Thomson-CSF, SA v. Am. Arbitration Ass’n, 64 F.3d 773, 776 (2d Cir. 1995)).
Satomi, 167 Wn.2d at 797; RCW 7.04A.280(1)(a); Stein, 105 Wn. App. at 45.
Satomi, 167 Wn.2d at 797; Stein, 105 Wn. App. at 48.
12 Clerk’s Papers at 32.
13 Id.
167 Wn.2d 781, 225 P.3d 213 (2009).
Id. at 810 (internal quotation marks omitted) (quoting Howsam, 537 U.S. at 83).
See id.
Id. at 810-11.
Id. at 810-11 & n.22.
Id. at 808-13.
121 F.3d 1372 (9th Cir. 1997).
835 So. 2d 990 (Ala. 2002).
Satomi, 167 Wn.2d at 810.
Id. (citing Quackenbush, 121 F.3d at 1380-82).
Id. at 810-11 (citing Ford, 835 So. 2d at 993-94).
540 F. Supp. 2d 1101 (N.D. Cal. 2007); Opening Br. of Appellant at 17.
Clay, 540 F. Supp. 2d at 1110 (“Because Mr. Clay agreed to the terms of the [coverage contract including an arbitration provision], his estate is bound by its terms. Therefore, the various causes of action in the Complaint which are brought
27 Clay, 540 F. Supp. 2d at 1111.
Ruiz v. Podolsky, 175 Cal. App. 4th 227, 95 Cal. Rptr. 3d 828, review granted and opinion superseded, 218 P.3d 261, 101 Cal. Rptr. 3d 1 (2009).
623 F. Supp. 2d 1235 (E.D. Wash. 2009).
153 Wn. App. 870, 224 P.3d 818 (2009).
Life Care, 623 F. Supp. 2d at 1236.
Id. at 1239-41.
Id. at 1239-40.
273 S.W.3d 525 (Mo. 2009).
Id. at 530.
Id. at 526.
Id. at 527-28 (quoting Finney v. Nat’l Health Care Corp., 193 S.W.3d 393, 395 (Mo. App. 2006)).
115 Ohio St. 3d 134. 2007-Ohio-4787. 873 N.E.2d 1258.
Id. at 135, 138-39.
Id. at 136.
Id. at 138.
Id.
Appellant’s Statement of Additional Authorities at 1 (quoting Townsend, 153 Wn. App. at 889).
Townsend, 153 Wn. App. at 889.
See id.
Opening Brief of Appellant at 8-12.
Federated Servs. Ins. Co. v. Pers. Representative of Estate of Norberg, 101 Wn. App. 119, 126, 4 P.3d 844 (2000).
Tait v. Wahl, 97 Wn. App. 765, 768-69, 987 P.2d 127 (1999) (quoting Long v. Dugan, 57 Wn. App. 309, 311, 788 P.2d 1 (1990)).
Federated Servs., 101 Wn. App. at 126 (citing RCW 4.20.010, 4.24.010; Gray v. Goodson, 61 Wn.2d 319, 325, 378 P.2d 413 (1963)).
Gray, 61 Wn.2d at 327.
Id. (quoting Maciejczak v. Bartell, 187 Wash. 113, 125, 60 P.2d 31 (1936)).
Tait, 97 Wn. App. at 772 (quoting Cavazos v. Franklin, 73 Wn. App. 116, 119, 867 P.2d 674 (1994)).
Federated Servs., 101 Wn. App. at 126 (quoting Warner v. McCaughan, 77 Wn.2d 178, 179, 460 P.2d 272 (1969)).
Tait, 97 Wn. App. at 772.
Federated Servs., 101 Wn. App. at 126 (quoting Warner, 77 Wn.2d at 179).
See Tait, 97 Wn. App. at 772.
See Satomi, 167 Wn.2d at 811 n.22, 808-13 (condominium association was bound to arbitrate based on arbitration agreements signed only by its members, whose claims the association asserted).
Id.
Federated Servs., 101 Wn. App. at 126 (emphasis added) (citing Gray, 61 Wn.2d at 325).
Gray, 61 Wn.2d at 327.
Id. (quoting Maciejczak, 187 Wash. at 125).
RCW 4.20.046.
RCW 4.20.010, .020.
45 Wn.2d 419, 423, 275 P.2d 723 (1954).
Id. at 423 (emphasis added).
46 Wn. App. 843, 733 P.2d 551 (1987).
Id. at 847-48.
Id. at 844 (boldface added).
Opening Br. of Appellant at 12.
See Ginochio, 46 Wn. App. at 845-48 (discussing the legislature’s reasons for treating wrongful death claims differently than other independent causes of action in enacting a statute that imputed contributory fault to wrongful death claims).
See Hewitt v. Miller, 11 Wn. App. 72, 521 P.2d 244 (1974) (wrongful death action barred because release of liability signed by student at scuba diving class was not contrary to public policy); Boyce v. West, 71 Wn. App. 657, 862 P.2d 592 (1993) (wrongful death action barred because release of liability signed by student
Atchison v. Great W. Malting Co., 161 Wn.2d 372, 166 P.3d 662 (2007) (holding that the minority of a wrongful death beneficiary does not toll the statute of limitations for wrongful death claims because the statutory scheme grants the personal representative, not the beneficiary, the right to sue).
See ROW 51.04.010 (“sure and certain relief for workers, injured in their work, and their families and dependents is hereby provided regardless of questions of fault and to the exclusion of every other remedy, proceeding or compensation, except as otherwise provided in this title” (emphasis added)).
Opening Brief of Appellant at 12-13 (citing State v. Dent, 123 Wn.2d 467, 484, 869 P.2d 392 (1994) (discussing trial court’s decision to deny severance where two defendants were convicted at joint trial)).
Id. at 14 (citing Munsey v. Walla Walla Coll., 80 Wn. App. 92, 94-95, 906 P.2d 988 (1995)).
Satomi, 167 Wn.2d at 810 (quoting Howsam, 537 U.S. at 83).
See id.
119 Mich. App. 814, 327 N.W.2d 370 (1982).
279 S.W.3d 640 (Tex. 2009).
See Ballard, 119 Mich. App. at 817-18; In re Labatt, 279 S.W.3d at 644.
Ballard, 119 Mich. App. at 817-18 (quoting Mich. Comp. Laws § 600.2922(1)).
In re Labatt, 279 S.W.3d at 644 (Wrongful death beneficiaries may pursue a cause of action “ ‘only if the individual injured would have been entitled to bring an action for the injury if the individual had lived.’ ” (quoting Tex. Civ. Prac. & Rem. Code Ann. § 71.003(a))).
Id. (characterizing the claim as “entirely derivative”); Ballard, 119 Mich. App. at 818 (wrongful death cause of action “expressly made derivative of the decedent’s rights”).
Ballard, 119 Mich. App. at 818-19.
Id. at 819.
See Pedersen v. Klinkert, 56 Wn.2d 313, 317, 352 P.2d 1025 (1960) (dicta is language not necessary to the decision in a particular case).
In re Labatt, 279 S.W.3d at 649.
RCW 4.20.010, .020.