FutureCare NorthPoint, LLC v. Peeler

143 A.3d 191, 229 Md. App. 108, 2016 Md. App. LEXIS 85
CourtCourt of Special Appeals of Maryland
DecidedJuly 28, 2016
Docket2602/14
StatusPublished
Cited by11 cases

This text of 143 A.3d 191 (FutureCare NorthPoint, LLC v. Peeler) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FutureCare NorthPoint, LLC v. Peeler, 143 A.3d 191, 229 Md. App. 108, 2016 Md. App. LEXIS 85 (Md. Ct. App. 2016).

Opinion

ARTHUR, J.

FutureCare NorthPoint, LLC, filed a petition to compel Valerie Peeler to arbitrate a wrongful death claim that Ms. Peeler had asserted in a separate lawsuit. FutureCare contended that Ms. Peeler should be required to arbitrate her wrongful death claim, because the decedent, Ms. Peeler’s mother, had signed an arbitration agreement upon being admitted to a FutureCare nursing facility. The circuit court denied FutureCare’s petition to compel arbitration.

FutureCare appealed. It presents an issue that both parties characterize as a matter of first impression in Maryland: “Whether wrongful death beneficiaries are bound by a valid and enforceable agreement signed by their decedent.”

On its own motion, this Court raised the issue of whether a party has the right to appeal from an order denying a petition to compel arbitration when, as in this case, it is brought as an independent action, and not as a motion in the existing action *115 commenced by the person whom the party seeks to compel to arbitrate.

On the threshold issue, we hold that an order denying an independent, freestanding petition to compel arbitration is a final judgment from which the aggrieved party has the right to appeal. On the merits, we hold that a decedent’s arbitration agreement ordinarily does not bind the decedent’s family members to arbitrate a claim under the Maryland wrongful death statute. Because the circuit court correctly refused to compel arbitration, we affirm the judgment.

Factual and Procedural Background

A. The Arbitration Agreement Between FutureCare and Peeler’s Mother

In February 2012, Phyllis Butz was admitted as a resident at the FutureCare NorthPoint skilled nursing facility in Baltimore County. At the time of her admission, Mrs. Butz executed a written agreement to resolve a broad range of potential controversies by binding arbitration pursuant to the Maryland Uniform Arbitration Act (MUAA). The scope of the agreement extended to “any action, dispute, claim or controversy of any kind ... now existing or hereafter arising between the parties in any way arising out of, pertaining to or in connection with or relating to” the provision of services by FutureCare, acts or omissions of FutureCare’s agents, as well as “any survival action or wrongful death claim[.]”

Another section of the agreement stated it would “inure to the direct benefit of and bind the parties and their respective personal representatives, heirs, successors and assigns, including ... all persons whose claims derive through, or on behalf of, the Resident, including those of any parent, spouse, child, guardian, executor, administrator, legal representative, or heir of the Resident, as well as any survivor or wrongful death claim [sic ]....” The agreement further stated that the parties were “each relinquishing and waiving their right under applicable law to have any claim decided in a court of law before a judge and/or a jury.”

*116 While she was a resident at the facility, Mrs. Butz received medical care from FutureCare employees. Mrs. Butz died on March 24, 2012. She was survived by her daughter, Ms. Peeler.

In pre-litigation discussions, FutureCare informed Ms. Peeler of the arbitration agreement that Mrs. Butz had signed. Ms. Peeler declined FutureCare’s request to resolve claims arising from her mother’s death through arbitration.

B. Peeler’s Wrongful Death Action Against FutureCare

On August 1, 2014, Ms. Peeler filed a complaint against FutureCare in the Circuit Court for Baltimore County. The action was designated as Valerie Peeler v. 1046 North Point, LLC, Case No. 03-C-14-8301.

Ms. Peeler’s complaint contained a single count for wrongful death as a result of medical malpractice. Ms. Peeler sought to recover damages under Maryland’s wrongful death statute for the mental anguish, emotional pain and suffering, and loss of society, comfort, advice, and guidance that she claimed to have experienced as a result of her mother’s death. She requested a jury trial.

As an affirmative defense, FutureCare asserted that Ms. Peeler’s wrongful death claim was “subject to an enforceable binding arbitration agreement.]” FutureCare moved to stay the proceedings pending the outcome of a separate petition to compel arbitration.

C. FutureCare’s Separate Petition to Compel Arbitration

On August 25, 2014, FutureCare commenced a separate and independent action in the circuit court by filing a petition for an order to arbitrate pursuant to Md. Code (1974, 2013 Repl. Vol.), § 3-207 of the Courts and Judicial Proceedings Article (“CJP”). This action, FutureCare North Point, LLC v. Valerie Peeler, was assigned case number 03-C-14-9157.

In its petition, FutureCare asserted that it had entered into a valid and enforceable arbitration agreement with the dece *117 dent, Mrs. Butz. FutureCare asked the court to “enforce the parties’ Arbitration Agreement and [o]rder [Ms. Peeler] to arbitrate the medical negligence claim against [FutureCare].”

Ms. Peeler opposed the petition. She denied the existence of an agreement between herself and FutureCare. She asserted that she had never signed the agreement, had never intended to be bound by the agreement, had never given her mother authority to enter an agreement on her behalf, was not a third-party beneficiary of the agreement, and had never attempted to enforce any of its provisions.

On its own motion, the court consolidated the wrongful death action with the action to compel arbitration. Nonetheless, the court maintained separate files for the two actions.

D. Denial of the Petition to Compel Arbitration

On January 13, 2015, the circuit court held a hearing in the two, consolidated cases to determine whether Ms. Peeler should be compelled to arbitrate. At the hearing, the court rejected the argument that Ms. Peeler was bound by Mrs. Butz’s agreement to arbitrate. On that basis, the court announced that the “Petition for Order of Arbitration [wa]s denied.”

FutureCare requested clarification about whether the court intended to issue a final order in its freestanding action to compel arbitration. The hearing judge concluded that the two actions had been consolidated for a “limited purpose,” but that the cases were “not joined for the merits” and ultimately would “be treated separately[.]”

After the hearing, the judge signed an order stating that FutureCare’s petition to compel arbitration was denied and that that action was no longer consolidated with the tort litigation in Case No. 03-C-14-8301. The order included language, which had been drafted by FutureCare, stating that the order would “constitute a final, appealable order as to the issue of arbitration pursuant to Maryland Rule 2-602(b) in case No. 03-C-14-9157.”

*118 On January 27, 2015, the clerk docketed the order in FutureCare’s freestanding action to compel arbitration.

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Bluebook (online)
143 A.3d 191, 229 Md. App. 108, 2016 Md. App. LEXIS 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/futurecare-northpoint-llc-v-peeler-mdctspecapp-2016.