Arbitration Agreements and Wrongful Death Claims: The Case of FutureCare NorthPoint in Baltimore County
Arbitration clauses are increasingly common in nursing home admission contracts across Maryland, often requiring residents and their families to resolve disputes outside of court. These agreements can have a significant impact on the legal rights of residents and their survivors, especially when it comes to claims of medical malpractice and wrongful death. The case involving FutureCare NorthPoint and the estate of Phyllis Butz is a key example of how these agreements play out in real-world scenarios.
The Admission and Arbitration Agreement
In February 2012, Phyllis Butz was admitted to FutureCare NorthPoint, a skilled nursing facility located in Baltimore County. Upon her admission, Mrs. Butz signed a comprehensive arbitration agreement. This document, created under the Maryland Uniform Arbitration Act (MUAA), was broad in scope—covering “any action, dispute, claim or controversy of any kind . . . now existing or hereafter arising” out of services provided by FutureCare or its agents. Notably, the agreement specifically referenced “any survival action or wrongful death claim,” and stated that it would bind not just the resident, but also personal representatives, heirs, successors, and assigns.
By signing, both parties waived their rights to have disputes heard in a court of law before a judge or jury, agreeing instead to binding arbitration as the means of resolving any legal issues.
Events Leading to Litigation
While under the care of FutureCare NorthPoint, Mrs. Butz received medical treatment from staff employed by the facility. She passed away on March 24, 2012. Her daughter, Valerie Peeler, survived her.
After her mother’s death, Ms. Peeler was notified by FutureCare of the arbitration agreement that Mrs. Butz had executed. FutureCare requested that any claims arising from Mrs. Butz’s death be resolved through arbitration, in accordance with the agreement.
Ms. Peeler declined this request, choosing instead to pursue her claims in court.
Wrongful Death Lawsuit Filed in Baltimore County
On August 1, 2014, Ms. Peeler filed a complaint in the Circuit Court for Baltimore County (Valerie Peeler v. 1046 North Point, LLC, Case No. 03-C-14-8301). The case alleged one count of wrongful death, asserting that medical malpractice by FutureCare staff led to Mrs. Butz’s passing.
Ms. Peeler sought damages under Maryland’s wrongful death statute for her own mental anguish, emotional pain and suffering, and loss of society, comfort, advice, and guidance stemming from her mother’s death. Importantly, she requested a jury trial, seeking to have her claims heard and decided in a public court rather than through private arbitration.
Legal Issues Raised by Nursing Home Arbitration Agreements
Cases like this raise important questions about the enforceability and fairness of arbitration agreements in the context of nursing home care:
- Scope: Many arbitration agreements are written to cover not only disputes arising during the resident’s life, but also claims brought by heirs or personal representatives after death, including wrongful death and survival actions.
- Binding Effect: These agreements often purport to bind parties who did not personally sign them—such as children or spouses of the resident—raising legal questions about consent and due process.
- Waiver of Rights: By agreeing to arbitration, residents and their families generally waive the right to a jury trial, which can limit public accountability and affect the outcome of significant disputes.
What Families Should Know
If you are considering a nursing home for a loved one, or are facing a dispute after an injury or death at a facility such as FutureCare NorthPoint, it is crucial to:
- Carefully review any arbitration agreements before signing.
- Understand what rights you or your family members may be waiving.
- Consult with an experienced Maryland nursing home attorney if you believe you have a claim, especially if the facility seeks to enforce an arbitration clause.
The Law Offices of Kim Parker, P.A. has experience handling wrongful death and medical malpractice claims against Maryland nursing homes, including disputes over arbitration agreements. For a consultation, contact us at 410-234-2621 to discuss your legal options.