Key v. Accolade Healthcare of the Heartland, LLC

2024 IL App (4th) 221030, 245 N.E.3d 535
CourtAppellate Court of Illinois
DecidedFebruary 13, 2024
Docket4-22-1030
StatusPublished
Cited by2 cases

This text of 2024 IL App (4th) 221030 (Key v. Accolade Healthcare of the Heartland, LLC) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

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].

-2- 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,

-3- 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

(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[.]

-4- 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

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Portage Park Capital, LLC v. A.L.L. Masonry Construction Co.
2024 IL App (1st) 240344 (Appellate Court of Illinois, 2024)
Rheinhart v. Loving
2024 IL App (4th) 231069-U (Appellate Court of Illinois, 2024)

Cite This Page — Counsel Stack

Bluebook (online)
2024 IL App (4th) 221030, 245 N.E.3d 535, Counsel Stack Legal Research, https://law.counselstack.com/opinion/key-v-accolade-healthcare-of-the-heartland-llc-illappct-2024.