Anonymous, M.D. and Life Care Centers of America, Inc., d/b/a Lane House v. Evelyn Hendricks
994 N.E.2d 324
Ind. Ct. App.2013Background
- Hendricks, a Lane House resident, appointed Marjorie Benge as a health care representative prior to admission.
- Benge had authority under Indiana Health Care Consent Act and Indiana Durable Power of Attorney Act to act for Hendricks in health care matters.
- Hendricks expressly directed Benge to sign the arbitration agreement on her behalf; Hendricks did not sign it due to physical injury.
- Arbitration agreement stated disputes would be resolved by binding arbitration under NAF rules, with an option for an alternate forum if NAF could not serve.
- Lane House sought to stay proceedings and compel arbitration after Hendricks filed suit; Hendricks argued NAF’s consent decree rendered arbitration impossible.
- Trial court denied arbitration; Lane House appeals seeking reversal and arbitration in light of unavailability of NAF.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Benge had authority to sign on Hendricks’s behalf | Hendricks bound by Benge’s signing | Benge authority extends to health care matters including arbitration | Benge’s signing binds Hendricks; authority established by agency documents |
| Whether NAF unavailability renders arbitration impossible | Arbitration agreement remains valid with alternate forum/method | Unavailability of the named arbitrator nullifies the agreement | Arbitration not rendered impossible; alternate forum/method permitted; remand for alternate arbitration |
Key Cases Cited
- Geneva-Roth Capital, Inc. v. Edwards, 956 N.E.2d 1195 (Ind. Ct. App. 2011) (NAF not integral where agreement allows alternate forum if NAF unavailable)
- Apex 1 Processing, Inc. v. Edwards, 962 N.E.2d 663 (Ind. Ct. App. 2012) (NAF integral analysis similar; unavailability not fatal where alternate exists)
- Crewe v. Rich Dad Education, LLC, 884 F. Supp. 2d 60 (S.D.N.Y. 2012) (expresses that non-integral designation allows alternate forum)
- In re Checking Account Overdraft Litig., 734 F. Supp. 2d 1294 (S.D. Fla. 2010) (arbitration provision naming multiple fora not rendered invalid by unavailability)
- Dickerson v. Longoria, 995 A.2d 721 (Md. 2010) (agency principles used to bind principal by signatory agent)
- Geneva-Roth Capital, Inc. v. Edwards, 956 N.E.2d 1195 (Ind. Ct. App. 2011) (NAF as provider can be non-integral with alternate forum provision)