The decedent, Joyce Gott suffered a nursing home injury and subsequently died. She was admitted to Odin Healthcare Center, a nursing home in Odin, Ill., in 2005 and again in 2006. Joyce had signed an arbitration contract with the nursing home, which provided that for any amount in controversy of at least $200,000, “they shall submit to binding arbitration all disputes against each other and their representatives, affiliates, governing bodies, agents and employees arising out of or in any way related or connected to the Admission Agreement and all matters related thereto including matters involving the Resident’s stay and care provided at the Facility, including but not limited to any disputes concerning alleged personal injury to the Resident caused by improper or inadequate care including allegations of medical malpractice; any disputes concerning whether any statutory provisions relating to the Resident’s rights under Illinois law were violated; any disputes relating to the payment or non-payment for the Resident’s care and stay at the Facility; and any other dispute under state or Federal law based on contract, tort, statute (including any deceptive trade practices and consumer protection statutes), warranty or any alleged breach, default, negligence, wantonness, fraud, misrepresentation or suppression of fact or inducement.”
After Joyce’s death, Sue Carter, acting as the special administrator for the estate, filed a two-count complaint, alleging a survival action under the Nursing Home Care Act and wrongful death under the Wrongful Death Act. Deciding whether the arbitration clause is enforceable, The Illinois Supreme Court in Carter v. SSC Odin Operating Co., No. 113204 (Sept. 20, 2012) ruled that the arbitration clause is only enforceable with respect to the survival action, but not to the wrongful death action. As the estate administrator was not a party to the arbitration agreement and since the wrongful death action accrues only when the nursing home resident dies and is for the benefit of the resident’s heirs, the estate administrator cannot be compelled to arbitrate the wrongful death action.
The nursing home has argued that the Federal Arbitration Act preempts the lawsuit and that the estate administrator must arbitrate both, the survival action and the wrongful death action.