83 F. Supp. 3d 691
N.D. Miss.2015Background
- Wrongful death action following Pauline Wagner's July 12, 2012 death in GGNSC Southaven nursing home.
- Dispute centers on whether to compel arbitration based on Sammy Gross signing an arbitration agreement on his mother's behalf.
- Plaintiff argues no authority existed since no power of attorney or similar document authorizing signing was executed.
- Defendants rely on actual/express authority, apparent authority, estoppel, and third-party beneficiary theories to enforce arbitration.
- Court previously asked for Mississippi authority and now analyzes each theory to determine enforceability of arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Authority to sign arbitration for mother | Gross had express authority via deposition evidence | No power of attorney; informal authority may suffice under some theories | Plaintiff lacked actual (express) authority to sign |
| Apparent authority to bind Wagner | No need if actual authority lacking; others relied on it | Wagner’s absence negates apparent authority | No apparent authority established |
| Estoppel to enforce arbitration against estate | If GGNSC relied on authority, estoppel may apply | Equitable estoppel supports enforcement | Estoppel inapplicable |
| Third-party beneficiary to enforce arbitration | Johnson permits third-party beneficiary enforcement | Johnson requires a valid contract first; lack of authority defeats contract | No valid contract formed; no third-party beneficiary |
| Overall enforceability and validity of arbitration agreement | Arbitration should proceed; authority issues resolved in plaintiff's favor | Arbitration should proceed per contract and FAA principles | No valid arbitration agreement; motion to compel arbitration denied |
Key Cases Cited
- Mississippi Care Center of Greenville, LLC v. Hinyub, 975 So.2d 211 (Miss. 2008) (healthcare surrogacy and power of attorney required for authority to sign arbitration)
- Reed v. Adams Community Care Center, 37 So.3d 1155 (Miss. 2010) (no power of attorney; no authority to bind to arbitration)
- Johnson v. GGNSC, 109 So.3d 562 (Miss. 2013) (no actual authority; third-party beneficiary analysis limited by contract formation)
- Monticello Community Care Ctr., LLC v. Estate of Martin, 17 So.3d 172 (Miss.Ct.App. 2009) (express agency requirements; power of attorney necessary to confer authority)
- Forest Hill Nursing Ctr., Inc. v. McFarlan, 995 So.2d 775 (Miss.App. 2008) (third-party beneficiary approach to nursing home arbitration historically recognized)
- AT&T Mobility LLC v. Concepcion, 563 U.S. 333 (U.S. 2011) (FAA preemption not used to weaken state-law enforcement of arbitration)