Fredericksburg Care Co., LP v. Perez

Elisa Zapata died while under the care of the Fredericksburg Care Company, LP, a nursing home. Zapata’s death and survival beneficiaries sued Fredericksburg, alleging negligent care and wrongful death. Fredericksburg filed a motion to compel arbitration based on an arbitration clause contained in an agreement that Zapata signed prior to her admission in the nursing home. The trial court denied the motion to compel arbitration, concluding (1) the pre-admission agreement’s arbitration clause did not comply with Tex. Civ. Prac. & Rem. Code Ann. 74.451 and was therefore invalid; and (2) the McCarran-Ferguson Act (MFA) applied in this case, thus triggering the exemption under which the Federal Arbitration Act (FAA) would not preempt the state statute. The court of appeals affirmed. The Supreme Court reversed, holding that the MFA does not exempt section 74.451 from preemption by the FAA, and the trial court should have granted Fredericksburg’s motion to compel arbitration. View "Fredericksburg Care Co., LP v. Perez" on Justia Law