Illinois Supreme Court Civil Issues Pending: Arbitration
[UPDATED THROUGH May 14, 2012]
Carter v. SSC Odin Operating Co.
Supreme Court Number: 113204
Appellate Court: Fifth District
Appellate Court Case Number: 5-07-0392
Issues Presented: (1) Is an agreement mandating arbitration of all claims for more than $200,000 arising out of nursing home claims void for lack of mutuality on the grounds it is illusory? (2) Is an agreement to arbitrate applicable to a wrongful death claim where plaintiff signed the agreement only in the status of decedent's "legal representative"?
Appellate Court Opinion Summary: Plaintiff, as administrator to decedent, sued defendant, alleging that it had negligently provided nursing home services to decedent, resulting in injuries to decedent and her death. The defendant moved to compel arbitration; the circuit court denied the motion; the Appellate Court affirmed; but the Supreme Court reversed. The matter then returned to the Appellate Court for consideration of further matters not previously addressed. The complaints alleged two claims, one for statutory survival, and one for wrongful death. On remand from the Supreme Court, the Appellate Court first held that the arbitration agreements evidenced transactions involving interstate commerce. Second, the Court held that the arbitration agreements were illusory and thus unenforceable on the grounds that, since they applied only to claims for more than $200,000, they could only apply to the decedent's claims for negligent care, not to defendant's claims for unpaid bills. Finally, the Court held that the wrongful death claims were not arbitrable, since plaintiff's signature on an arbitration agreement was designated as decedent's "legal representative," while the wrongful death claim belonged to plaintiff personally. Justice Spomer dissented in part, concluding that the contracts were not void for lack of mutuality.
