Courtyard Gardens Health & Rehab. v. Sheffield, 495 S.W.3d 69

In May 2010 APS consultant Johnathan Mitchell found Maylissia Holliman in unsafe, impaired condition and sought emergency custody. The circuit court entered an ex parte order authorizing DHS to take Holliman into protective custody and to provide medical care; it also authorized DHS access to Holliman’s financial information for inspection.
Pursuant to that order, Mitchell admitted Holliman to Courtyard Gardens Health and Rehabilitation and, acting as her custodian, signed an admission agreement and an arbitration agreement on her behalf.
In August 2014 Patricia Ann Sheffield, as special administrator of Holliman’s estate, sued Courtyard for injuries allegedly sustained at the facility that led to Holliman’s death.
Courtyard moved to dismiss and to compel arbitration based on the signed arbitration agreement. The circuit court denied the motion, finding Mitchell lacked authority under the Adult Maltreatment Custody Act (AMCA) to bind Holliman to arbitration.
The circuit court also found the arbitration agreement incorporated NAF procedural rules and that NAF’s unavailability made arbitration impossible, but the Supreme Court resolved the case on the authority issue and did not reach the NAF point.

Issue	Plaintiff's Argument (Sheffield)	Defendant's Argument (Courtyard)	Held
Whether Mitchell, as AMCA custodian, had authority to bind Holliman to an arbitration agreement	Mitchell lacked statutory authority as custodian to enter agreements binding Holliman or her estate	AMCA empowered APS/DHS custody actions and Carmody/Lamb support that a guardian/custodian can execute arbitration agreements	A custodian under AMCA does not have authority to bind the ward to arbitration; custody under AMCA is more limited than guardianship; arbitration agreement invalid

Carmody v. Raymond James Financial Services, 281 S.W.3d 721 (Ark. 2008) (addressed whether a guardian of the person and estate may bind an incapacitated ward to arbitration; court enforced arbitration where guardian held both person and estate powers)