The U.S. Court of Appeals for the Fourth Circuit has affirmed a lower court’s decision denying a motion to compel arbitration filed by Claiborne Senior Living, LLC and TCABC Real Estate Holdings, LLC in a wrongful death lawsuit brought by the estate of Gordon Jay Sarver.
According to court records, Sarver, who suffered from dementia, was admitted to The Claiborne at Brickyard Crossing, a memory care facility in Summerville, South Carolina, in October 2022. Four months later, he died after walking away from the facility, falling, and striking his head. His wife, Cheryl Sarver, filed a lawsuit in May 2023 on behalf of his estate, alleging state-law claims related to his death.
Before his admission, Cheryl Sarver signed a residency agreement and a binding arbitration agreement on her husband’s behalf. Although Claiborne listed arbitration as an affirmative defense in its initial response to the lawsuit, the company did not file a motion to compel arbitration until March 202, nearly eight months after litigation began.
The court found that Claiborne had actively participated in the litigation process, including serving and responding to discovery requests, participating in depositions, and even issuing subpoenas after the court had granted a stay on discovery. The Fourth Circuit ruled that Claiborne’s delay and actions amounted to a waiver of its arbitration rights, consistent with the Supreme Court’s 2022 decision in Morgan v. Sundance, which clarified that parties can waive arbitration rights without needing to show prejudice.
The court rejected Claiborne’s claim that it could not have moved earlier due to uncertainty about the legal authority of Cheryl Sarver to sign on her husband’s behalf. The panel noted that Claiborne relied on multiple alternative legal theories to support arbitration and had allowed Gordon’s admission without verifying the power of attorney at the time.
The court’s opinion was issued per curiam and remains unpublished, meaning it does not serve as binding precedent in the Fourth Circuit.
