Diversicare Leasing Corp. v. Hubbard, 189 So. 3d 24

Johnathan Hubbard, a 21-year-old mentally incapacitated resident, was admitted to Canterbury in 2009 where Betty Hubbard signed admission and arbitration documents as his Resident’s Representative.
The arbitration clause defined that disputes relating to healthcare and related relationships could be arbitrated and that the agreement survives the resident’s death.
Betty, as Johnathan’s mother, had served as his caretaker and decision-maker but did not hold court-appointed guardianship or power of attorney at the time of signing.
Betty later sued Canterbury for wrongful death in 2013; Canterbury moved to compel arbitration of the wrongful-death claim.
The trial court denied arbitration; Canterbury appealed, arguing Betty’s signature bound Johnathan despite incapacity, and that Betty could bind herself as personal representative.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether a nursing-home arbitration clause binds a mentally incapacitated resident's estate.	Betty cannot bind Johnathan; he was incapacitated and had no appointed representative authority.	Arbitration clause binds the resident and thus also binds the representative who signed as Resident’s Representative.	No; Johnathan could not be bound due to incapacity and lack of proper authority.
Whether Betty, by signing as Resident’s Representative, can bind herself as personal representative to arbitrate the wrongful-death claim.	Betty cannot be bound in her personal-representative capacity because she signed as relative/next friend, not as a recognized personal representative.	Betty is bound as signer and must arbitrate the wrongful-death claim as administrator.	Betty cannot be bound in her personal-representative capacity because she did not hold authority to bind Johnathan and the governing terms separate capacity.
Are the Noland/Bolding line of cases controlling where the resident is incompetent and a representative signed as the only signer?	Noland and Bolding permit non-signatory consideration when incompetence prevents proper signing; the representative’s signature should bind only if appropriate.	Apparent authority and signatory status should bind the estate to arbitration.	The court follows Noland and Bolding to find Betty cannot bind Johnathan or the estate; the resident cannot be bound.

Briarcliff Nursing Home, Inc. v. Turcotte, 894 So.2d 661 (Ala. 2004) (resident binding via representative where resident competent)
Owens v. Coosa Valley Health Care, Inc., 890 So.2d 983 (Ala. 2004) (competent resident signed by guardian/guardian-signor binds arbitration)
Noland Health Services, Inc. v. Wright, 971 So.2d 681 (Ala. 2007) (plurality; incompetent resident signing via non-representative cannot bind)
Carraway v. Beverly Enters. Alabama, Inc., 978 So.2d 27 (Ala. 2007) (authorized representative can bind resident to arbitration)
Tennessee Health Mgmt., Inc. v. Johnson, 49 So.3d 175 (Ala. 2010) (apparent authority where daughter signed; competence matters; decedent bound)
Entrekin v. Internal Medicine Associates of Dothan, P.A., 689 F.3d 1248 (11th Cir. 2012) (reaffirms that decedent-bound arbitration binds representative; rejects second Noland premise)
Wells Fargo Bank, N.A. v. Chapman, 90 So.3d 774 (Ala.Civ.App. 2012) (signatory-capacity issue; wrongful-death arbitration interplay)