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