Woodall v. AVALON CARE CENTER-FEDERAL WAY

231 P.3d 1252
CourtCourt of Appeals of Washington
DecidedMay 10, 2010
Docket62894-1-I
StatusPublished
Cited by29 cases

This text of 231 P.3d 1252 (Woodall v. AVALON CARE CENTER-FEDERAL WAY) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Woodall v. AVALON CARE CENTER-FEDERAL WAY, 231 P.3d 1252 (Wash. Ct. App. 2010).

Opinion

231 P.3d 1252 (2010)
155 Wash.App. 919

Clifford Wayne WOODALL, individually and as representative of the Estate of Henry Wayne Woodall; and Sharon G. Woodall King, Respondents,
v.
AVALON CARE CENTER-FEDERAL WAY, LLC, Appellant.

No. 62894-1-I.

Court of Appeals of Washington, Division 1.

May 10, 2010.

*1253 Stephen S. Hornbuckle, The Hornbuckle Firm, Bellevue, WA, for Respondent.

Christopher Holm Howard, Mary Jo Newhouse, Averil Budge Rothrock, Seattle, WA, for Appellant.

PUBLISHED IN PART

¶ COX, J.

¶ 1 Avalon Care Center—Federal Way, LLC ("Avalon"), 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 on statutory causes of action for the benefit of the heirs of Henry Woodall. These heirs did not agree to arbitrate their wrongful death claims. Moreover, there is no basis to require them to arbitrate these claims. We affirm.[1]

¶ 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[2] and Avalon executed a "Resident and Facility Arbitration Agreement." The agreement provides for arbitration of all disputes and claims for damages arising from personal injury or medical care.

¶ 3 Henry died on July 28, 2007. Clifford Woodall and Sharon Woodall King are the children of Henry and his sole heirs (collectively, "the 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 danger of conflicting outcomes based on the same set of intertwined facts." Nevertheless, the court concluded that case and statutory authorities required this result.

¶ 6 Avalon appeals.[3]

ARBITRABILITY OF WRONGFUL DEATH CLAIMS

¶ 7 Avalon argues that the arbitration agreement between Henry and Avalon binds *1254 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.[4] "While a strong public policy favoring arbitration is recognized under both federal and Washington law, `arbitration is a matter of contract and a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit.'"[5]

¶ 9 There are limited exceptions to the general rule that one who does not sign an arbitration agreement cannot be compelled to arbitrate.[6] "For instance, a nonsignator is bound by the terms of an arbitration agreement where the nonsignator's claims are asserted solely on behalf of a signator to the arbitration agreement."[7] "In addition, federal courts have held, and the Washington Court of Appeals has recognized, that `[n]onsignatories of arbitration agreements may be bound by the agreement under ordinary contract and agency principles.'"[8] Among these principles are (1) incorporation by reference; (2) assumption; (3) agency; (4) veil-piercing/alter ego; and (5) estoppel.[9]

¶ 10 Arbitrability is a question of law that we review de novo.[10] The burden of proof of showing that the arbitration agreement is unenforceable is on the party seeking to avoid arbitration.[11]

¶ 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 *1255 from alleged negligence, gross negligence, malpractice, or any alleged claims based on any 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] that "`arbitration is a matter of contract and a party cannot be required to submit to arbitration any dispute which he [or she] has not agreed so to submit.'"[15] The court stated this long-standing principle of contract law notwithstanding its acknowledgement that there is a strong public policy favoring arbitration recognized under both federal and state law.[16]

¶ 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.[17] It also identified a group of cases where federal courts have held, and this court has recognized, that a person who has not agreed to arbitrate may be bound to arbitrate based on ordinary contract and agency principles.[18] Applying agency principles in one of the consolidated cases in Satomi, the supreme court held a condominium association was bound to arbitrate based on arbitration agreements signed only by its members, where the association asserted claims of its members.[19]

¶ 15 Avalon does not rely on either the Quackenbush v. Allstate Insurance Co.[20] or SouthTrust Bank v. Ford[21] line of cases that Satomi cites as examples of the "certain limited exceptions" to the general rule.[22]Quackenbush was a case where the rights asserted were on behalf of persons who signed arbitration agreements.[23]Ford involved claims on behalf of an estate's claims.[24]

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Cite This Page — Counsel Stack

Bluebook (online)
231 P.3d 1252, Counsel Stack Legal Research, https://law.counselstack.com/opinion/woodall-v-avalon-care-center-federal-way-washctapp-2010.