Agreement compels arbitration for wrongful death of unborn child

A Texas appellate court on Tuesday ruled a trial court erred in denying a motion to compel arbitration by finding that a woman suing over the death of her unborn son was a transportation worker and exempt from the Federal Arbitration Act.

The 14th District Court of Appeals in BFS Group LLC v. De Leon said there was insufficient evidence for the trial court to conclude that Elizabeth Martinez Silva was transporting goods across state lines and remanded the case back to lower court to consider her employer’s arbitration agreement, which precludes wrongful death claims for her immediate family.

“In asserting their respective wrongful death claims, Jose and Martinez stand in … Gustavo’s legal shoes and are bound by the arbitration agreement just as Gustavo is,” the court said. “Therefore, the BFS parties may compel arbitration of the wrongful death claims under this agreement.”

Ms. Martinez started working at the Builders FirstSource window manufacturing facility in Houston in November 2020. At the start of her employment, she agreed to arbitrate any legal claim for physical and psychological injuries and accidental death, including harm caused by negligence or gross negligence. The agreement states that it applied to any claim that could be brought by Martinez’s spouse or children, including any survival or wrongful death claims.

The arbitration agreement included a provision compelling arbitration to determine which disputes are subject to compulsory arbitration.

Ms. Martinez became pregnant with Gustavo De Leon in the fall of 2023 and continued working, although her doctor restricted her ability to carry, lift, push or pull more than 25 pounds for the duration of her pregnancy. She alleged that while working as an assembly line leader in January 2024, she was forced to exceed restrictions set by her doctor. She started to experience pulsating pain accompanied by spotting and contractions, and the next day, the unborn child was pronounced dead.

Ms. Martinez and her husband sued on behalf of her unborn son, alleging that he died of a labor-induced miscarriage because Builders FirstSource continuously and repeatedly disregarded her work restrictions.

A trial court denied the employer’s motion to compel arbitration, finding that Martinez was a transportation worker who was exempt from the Federal Arbitration Act.

The appeals court said the transportation worker exemption to the FAA applies to those actively transporting goods across borders. The court was not persuaded by the argument that working on an assembly line in Houston, taking glass and vinyl shipped from Ohio and making windows to be shipped to other states qualifies for the transportation worker exemption.

Ms. Martinez’s responsibilities were on the assembly line, and she was not responsible for transporting goods, the appeals court, calling the evidence “undisputed.”

On the arbitration agreement itself, the court noted that the employer never signed the agreement, but the document included an acknowledgement stating Ms. Martinez was aware that Builders FirstSource also accepted and agreed to its terms. The court also said an employer can manifest its assent to an arbitration agreement by its conduct, as was the case here.

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