684 S.W.3d 632
Ark. Ct. App.2024Background
- Patricia Ann Greeson was admitted to Hot Springs Nursing and Rehabilitation - A Waters Community, LLC (“the Facility”) in August 2019.
- Greeson’s daughter, Kelly C. Hooker, acting as power of attorney (POA), signed admissions paperwork, including an arbitration agreement.
- The POA only authorized Hooker to act regarding property, not health care decisions.
- After Greeson’s death, Hooker, as representative of Greeson’s estate, sued the Facility alleging negligence and wrongful death.
- The Facility moved to compel arbitration; Hooker opposed, arguing lack of authority and contract defects. The circuit court denied arbitration; the Facility appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Mutuality of obligation | Agreement lacks mutuality, favors Facility | Agreement is mutual, both parties bound | Lacked mutuality; arbitration denied |
| Authority to sign | Hooker lacked authority for health care | POA provides sufficient authority | Not reached (decision based on mutuality) |
| Jury trial on motion | N/A | Requested on appeal only | Waived (not raised below) |
Key Cases Cited
- Bank of the Ozarks, Inc. v. Walker, 434 S.W.3d 357 (Ark. 2014) (sets out elements for enforceable arbitration agreements)
- Robinson Nursing & Rehab. Ctr., LLC v. Phillips, 586 S.W.3d 624 (Ark. 2019) (arbitration agreements lacking mutuality are unenforceable)
- Jorja Trading, Inc. v. Willis, 598 S.W.3d 1 (Ark. 2020) (clarified mutuality does not require identical rights but did not overturn Robinson)
- Asset Acceptance, LLC v. Newby, 437 S.W.3d 119 (Ark. 2014) (court decides existence and validity of arbitration agreements)
- Courtyard Gardens Health & Rehab., LLC v. Arnold, 485 S.W.3d 669 (Ark. 2016) (standard of review for arbitration denials)