GGNSC v. Schrader: Court Upholds Right to Sue Despite Arbitration Pact

In GGNSC Administrative Services, LLC v. Schrader, the Massachusetts Supreme Judicial Court decided whether a nursing home's arbitration agreement, signed at admission, could be enforced against family members bringing a wrongful death lawsuit. The case clarified how such agreements apply to statutory wrongful death actions in Massachusetts, especially when the agreement is executed by someone acting on the decedent’s behalf.

Nursing Home Admission and Signed Arbitration Terms

Emma Schrader was admitted to Golden Living Center—Heathwood in February 2013. Her daughter, Jackalyn Schrader, signed the facility’s admission paperwork as power of attorney. Among the forms was a voluntary arbitration agreement stating that any disputes, including wrongful death claims, would be resolved through arbitration. The form indicated that it would apply to future claims brought by anyone whose right to recover damages derived from the resident.

Emma passed away in December 2013 while in the facility’s care. In 2016, Jackalyn filed a wrongful death lawsuit in Massachusetts Superior Court. GGNSC, the nursing home’s operator, responded by moving to compel arbitration based on the agreement Jackalyn had signed.

Legal Dispute Over Arbitration and Wrongful Death Claims

The issue focused on whether a wrongful death action, brought by statutory beneficiaries under Massachusetts law, could be subject to arbitration if the decedent had previously agreed to such a provision. Jackalyn argued that her wrongful death claim was independent and personal, and therefore not covered by the agreement signed on her mother’s behalf.

GGNSC maintained that the claim was derivative of the decedent’s rights, pointing to Massachusetts General Laws chapter 229, § 2, which authorizes wrongful death claims only in situations where the decedent could have brought a personal injury claim had they survived. The U.S. District Court sided with GGNSC, holding the arbitration agreement enforceable and finding no basis for unconscionability. Jackalyn appealed, and the First Circuit certified two questions to the state’s high court for clarification.

Massachusetts Supreme Judicial Court’s Review

The Massachusetts high court reviewed the statutory framework and relevant case law. It noted that wrongful death actions under state law must be brought by the decedent’s executor or administrator and are contingent on the decedent having had a valid claim at the time of death. The court explained that beneficiaries do not possess an independent right of action.

Given that the wrongful death claim was derivative, the court reasoned that a valid arbitration agreement signed by or on behalf of the decedent would extend to that claim. It found the arbitration clause clearly written, non-coercive, and revocable within 30 days—factors supporting enforceability under both state and federal law.

Court's Holding and Impact on Wrongful Death Litigation

The court answered both certified questions in favor of enforcing the arbitration agreement. It ruled that wrongful death claims under Massachusetts law are derivative, and that an arbitration agreement signed during admission to a care facility can bind statutory beneficiaries to arbitrate those claims.

This decision provides guidance for future disputes involving elder care facilities, arbitration agreements, and wrongful death claims. It confirms that when the right to sue is derived from the decedent, arbitration provisions may remain enforceable.

Legal Guidance for Wrongful Death Claims Involving Arbitration

If you are handling a wrongful death matter involving a nursing home or assisted living agreement, our attorneys at Whitcomb, Selinsky, PC can help you interpret arbitration clauses and assess your legal rights. We review agreements, clarify legal obligations, and guide families through the claims process with a focus on Massachusetts wrongful death law.