Goldman v. Sunbridge Healthcare, LLC
220 Cal. App. 4th 1160
| Cal. Ct. App. | 2013Background
- Plaintiff Judy Goldman sued (individually and as successor to her late husband Edward) for elder abuse, negligence, violations of Patients Bill of Rights, wrongful death, and negligent infliction of emotional distress arising from Edward’s stays at two skilled nursing facilities (Carmichael Care and Rosewood Terrace).
- At admission to both facilities, Judy signed various admission forms that included arbitration agreements; defendants moved to compel arbitration based on those signed forms and a VA advance directive naming Judy as Edward’s health-care agent if he became incapacitated.
- Edward had executed a VA advance directive appointing Judy as his health-care agent "if there ever comes a time when I cannot make those decisions," but evidence showed Edward was alert, oriented, and signing medical forms during the admissions period; no treating physician declared him incapacitated.
- Judy declared she was told by facility staff to sign admission forms, was not informed they were arbitration agreements or that there was a choice, and that Edward was capable of making his own decisions.
- The trial court denied the petition and motion to compel arbitration, finding defendants failed to prove Judy had authority to sign on Edward’s behalf and that she did not sign in her individual capacity; the court also exercised its discretion under Code Civ. Proc. §1281.2(c) to adjudicate matters in court.
- The Court of Appeal affirmed, holding defendants did not meet their burden to prove a valid agreement to arbitrate by Edward or by someone with authority to bind him, and Judy was not personally bound by the arbitration agreements.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Judy had authority to sign arbitration agreements for Edward | Judy lacked authority; Edward was capable and retained decisionmaking; no physician declared incapacity | Judy had authority under Edward’s VA advance directive and by virtue of being his spouse/"representative" when he could not physically sign | Denied: defendants failed to show Edward lacked capacity or that Judy had agency authority; marital status alone insufficient |
| Whether Judy signed the arbitration agreements in her individual capacity | Judy did not intend to be bound personally; signatures were as representative only and she was not a resident | Facilities argue forms state legal representative signs in both representative and individual capacity; Judy therefore waived her own claims | Denied: forms were ambiguous or left blanks; Judy was not a party/resident and did not validly waive personal claims |
| Whether public policy requires enforcement despite lack of agreement | Judy: arbitration requires consent; public policy does not bind nonconsenting parties | Defendants: strong public policy favors arbitration and compels enforcement | Denied: policy favoring arbitration does not override the need for actual consent and proof of a valid agreement |
| Whether trial court erred by retaining jurisdiction / preempted by FAA | Judy supported court’s exercise of discretion under §1281.2(c) | Defendants contended §1281.2(c) was preempted by the FAA and court misused discretion | Court did not reach preemption question; disposition based on lack of valid arbitration agreement, so §1281.2(c) exercise need not be reviewed |
Key Cases Cited
- Victoria v. Superior Court, 40 Cal.3d 734 (Cal. 1985) (arbitration favored but requires mutual agreement)
- Flores v. Evergreen at San Diego, LLC, 148 Cal.App.4th 581 (Cal. Ct. App. 2007) (spousal status alone does not create agency to bind spouse to arbitration)
- Garrison v. Superior Court, 132 Cal.App.4th 253 (Cal. Ct. App. 2005) (party seeking arbitration bears burden to prove a valid agreement)
- Ruiz v. Podolsky, 50 Cal.4th 838 (Cal. 2010) (patient’s arbitration agreement can bind successors when there is a valid agreement)
- Benasra v. Marciano, 92 Cal.App.4th 987 (Cal. Ct. App. 2001) (one cannot be compelled to arbitrate without agreeing to do so)