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675 S.W.3d 140
Ark. Ct. App.
2023
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Background

  • June Marie Pelham was admitted to Ashton Place Health and Rehab March 15–18, 2019 and died March 19, 2019; the Estate sued Ashton Place for negligent care and wrongful death.
  • Ashton Place moved to compel arbitration, relying on a March 15, 2019 admission agreement (incorporating arbitration) and a July 31, 2014 power of attorney naming Joyce Russell as attorney-in-fact.
  • The 2014 POA authorized Russell for “any stock, bond or other financial investment, real estate and medical issues” and referenced "A.C.A. 28-68-201 et seq." but did not expressly mention litigation or claims.
  • The Estate argued Russell lacked authority to bind Pelham to arbitration because the POA did not grant claims/litigation authority; Ashton Place contended the statutory incorporation conferred broad authority and invoked Kindred Nursing preemption of special rules disfavoring arbitration.
  • The circuit court denied the motion, finding the POA did not grant authority to make litigation decisions or agree to arbitration; the court’s denial was appealed and affirmed by the Court of Appeals.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the POA authorized the agent to agree to arbitration POA does not grant claims/litigation authority; agent lacked power to arbitrate POA’s reference to A.C.A. 28-68-201 et seq. and the broad language means agent had authority to sign arbitration POA did not grant authority to bind Pelham to arbitration; agreement invalid
Whether Kindred Nursing requires enforcement despite no express delegation Kindred not implicated; Arkansas statutes don’t single out arbitration for disfavored treatment Kindred precludes a state rule requiring an express delegation to arbitrate Kindred does not control here—statutory scheme did not discriminate against arbitration; court’s ruling stands

Key Cases Cited

  • Williamson v. Courtyard Gardens Health & Rehabilitation, 509 S.W.3d 685 (Ark. Ct. App.) (refusal to find agency for arbitration where POA did not select claims and litigation)
  • Moss v. Malvern Operations, 605 S.W.3d 291 (Ark. Ct. App.) (general, vague POA language did not incorporate full statutory general authority)
  • Kindred Nursing Centers Ltd. P’ship v. Clark, 581 U.S. 246 (2017) (Supreme Court: state rules requiring an express delegation for arbitration impermissibly single out arbitration under the FAA)
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Case Details

Case Name: Ashton Place Health and Rehab, LLC v. Joyce Russell, as Special Administratrix of the Estate of June Marie Pelham, and on Behalf of the Wrongful Death Beneficiaries of June Marie Pelham
Court Name: Court of Appeals of Arkansas
Date Published: Aug 30, 2023
Citations: 675 S.W.3d 140; 2023 Ark. App. 351
Court Abbreviation: Ark. Ct. App.
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    Ashton Place Health and Rehab, LLC v. Joyce Russell, as Special Administratrix of the Estate of June Marie Pelham, and on Behalf of the Wrongful Death Beneficiaries of June Marie Pelham, 675 S.W.3d 140