Key v. Accolade Healthcare of the Heartland, LLC

2024 IL App (4th) 221030, 245 N.E.3d 535
Appellate Court of Illinois·Decided February 13, 2024·No. 4-22-1030·Published·Cited by 2 cases

Opinion

2024 IL App (4th) 221030

FILED

NO. 4-22-1030 February 13, 2024 Carla Bender

4 th District Appellate

IN THE APPELLATE COURT Court, IL OF ILLINOIS

FOURTH DISTRICT

THOMAS KEY SR., as Independent Administrator of the ) Appeal from the Estate of Lois Key, Deceased, ) Circuit Court of Plaintiff-Appellant, ) Ford County v. ) No. 22LA2 ACCOLADE HEALTHCARE OF THE HEARTLAND, ) LLC, d/b/a Accolade Healthcare of Paxton on Pells, ) Honorable Defendant-Appellee. ) Matthew John Fitton, ) Judge Presiding.

JUSTICE ZENOFF delivered the judgment of the court, with opinion.

Justices Lannerd and Knecht concurred in the judgment and opinion.

OPINION

¶1 Plaintiff, Thomas Key Sr., as independent administrator of the estate of Lois Key, deceased, filed this nursing home negligence action against defendant, Accolade Healthcare of the Heartland, LLC, d/b/a Accolade Healthcare of Paxton on Pells. (Defendant asserts that plaintiff did not sue it by its correct legal name, and we have corrected the caption accordingly.) Plaintiff appeals an order dismissing all three counts of his complaint with prejudice and compelling arbitration of the claims. We reverse and remand.

¶2 I. BACKGROUND

¶3 Decedent, Lois Key, resided at defendant’s nursing home facility before dying on July 20, 2020. On March 4, 2022, plaintiff filed a three-count complaint against defendant. Count I was filed pursuant to the Nursing Home Care Act (210 ILCS 45/1-101 et seq. (West 2022)) and the Survival Act (755 ILCS 5/27-6 (West 2022)). Count II was filed pursuant to the Wrongful

Death Act (740 ILCS 180/0.01 et seq. (West 2022)). Count III realleged count I and then sought to recover decedent’s funeral and burial expenses.

¶4 A. Defendant’s Motion to Dismiss and to Compel Arbitration

¶5 Pursuant to section 2-619(a) of the Code of Civil Procedure (Code) (735 ILCS 5/2-619(a) (West 2022)), defendant moved to dismiss the action and to compel arbitration of all three counts of the complaint. Defendant argued that decedent agreed to arbitrate disputes as part of the documents she signed attendant to her residency at defendant’s facility. According to defendant, the arbitration agreement was valid, and the issues in plaintiff’s complaint fell within the scope of that agreement. Although defendant relied almost exclusively on Illinois caselaw in its motion, defendant maintained it was entitled to its requested relief under both federal and Illinois law. To that end, defendant cited both the United States Arbitration Act, as amended, most commonly referred to as the Federal Arbitration Act (9 U.S.C. § 1 et seq. (2018)), and Illinois’s Uniform Arbitration Act (710 ILCS 5/1 et seq. (West 2022)).

¶6 As “Exhibit B” to its motion, defendant attached a lengthy admission packet containing documents signed by decedent. Exhibit B includes an executed “Contract Between Resident and Facility.” This contract contains the following arbitration provisions:

“The Resident agrees to submit all claims or controversies arising out of or in any way relating to the Agreement, but not involuntary transfer and discharge proceedings, eviction proceedings, or matters that are properly filed in a small claims court or with the State Agency, in accordance with the Arbitration Agreement attached as Attachment E. Resident voluntarily agrees that execution of the Agreement [sic].

Pursuant to the Federal Arbitration Act *** and other applicable law, the parties agree to submit any dispute, claim, or controversy (‘Dispute’), arising out of or relating to (i) this Agreement or any amendment to this Agreement or (ii) the breach, termination, enforcement, interpretation, or validity of this Agreement, including the determination of the scope or applicability of this agreement to arbitrate (‘Arbitration Agreement’), to final and binding arbitration before one arbitrator. If such arbitrator finds any portion of this Arbitration Agreement unenforceable, that portion will not be effective and the remainder of this Arbitration Agreement will remain in effect. The Federal Arbitration Act will govern the proceedings and interpretation of this Arbitration Agreement. A party to the arbitration may enter a judgment on the arbitration award in any court of competent jurisdiction.

This Arbitration Agreement does not limit, impair, or waive any defenses of any party, including the statute of limitations, and nothing in this Agreement prevents you or any other person from contacting regulatory or administrative agencies in relation to services the Facility provides. This Arbitration Agreement binds all parties to this Agreement and their spouses, heirs, representatives, executors, administrators, successors, and assigns, as applicable. After this Agreement terminates, this Arbitration Agreement shall remain in effect for the resolution of all future Disputes between the parties.”

¶7 The contract specifies that its term was one year, subject to automatic annual renewals, unless either party terminated the contract. Additionally, the contract would terminate upon decedent being transferred or discharged from the facility. In the event of decedent’s death,

the contract would “terminate automatically,” either when decedent’s family removed her personal belongings from her room or 15 days after the death.

¶8 Attachment E to this contract is an arbitration and limitation of liability rider that decedent signed separately. This rider provides, in relevant portion:

“1. The parties agree the disputes identified in Article 2, below, between:

a) the Resident or his/her spouse, heirs or assigns; and b) Facility or its affiliates, officers, directors, agents, license holders, managers, or employees, shall be submitted to binding arbitration, as provided below, and shall not be filed in a court of law.

2. The disputes subject to arbitration in accordance with this Rider, include:

(a) all claims or controversies arising out of or in any way relating to the Agreement, but not involuntary transfer and discharge proceedings, eviction proceedings, or matters that are properly filed in a small claims court or with the State Agency;

(b) the Resident’s stay at the Facility, but not administrative involuntary termination or involuntary transfer or discharge proceedings, eviction proceedings, or matters that are properly filed in a small claims court or with the State Agency;

(c) the services rendered for any condition, and any dispute arising out of the diagnosis, treatment, or care of the Resident;

(d) disputes involving amounts in controversy greater than $150,000.00; or

(e) disputes regarding interpretation of this Rider[.]

The enumerated disputes will be subject to this Rider whether arising out of State or federal law, whether existing or arising in the future, whether for statutory, compensatory or punitive damages and whether sounding in breach of contract, tort or breach of statutory duties, irrespective of the basis for the duty or the legal theories upon which the claim is asserted.

The parties to this Rider further understand that Claims, including malpractice claims, cannot be brought in a lawsuit in court before a judge or jury and that a jury will not decide their case.

3. This Rider shall be governed by and interpreted under the Federal Arbitration Act ***. In the event that it is determined that the [Federal Arbitration Act] is inapplicable, the parties desire that this agreement be interpreted under the applicable Illinois law so as to give effect to the parties’ intent. Further, nothing in this Rider is to be construed to contradict any applicable Illinois statutory grievance or mediation procedure. ***

***

10. The arbitration proceedings shall be held in accordance with the rules and procedures as outlined in the National Arbitration Forum’s Code of Procedure. In the event that the National Arbitration Forum is unable or unwilling to arbitrate the dispute, the parties agree that the dispute shall be arbitrated before a nationally recognized arbitration organization pursuant to its code of conduct.

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Key v. Accolade Healthcare of the Heartland, LLC, 2024 IL App (4th) 221030, 245 N.E.3d 535 (Ill. Ct. App. 2024).

2024 IL App (4th) 221030 (Key v. Accolade Healthcare of the Heartland, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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