History
  • No items yet
midpage
2020 Ark. App. 518
Ark. Ct. App.
2020
Read the full case

Background

  • Kenneth Jordan was admitted to Innisfree Health and Rehab on August 25, 2016; his wife, Reba Jordan, signed admission paperwork that included an arbitration agreement.
  • The arbitration form identified parties as the facility and the “Resident’s Responsible Party” (filled with Reba’s name and her designation as “Spouse”); it did not identify the resident by name and left the box about a power of attorney or other legal authority blank.
  • While a resident, Kenneth suffered multiple injuries and later died on August 6, 2017; his estate (Kenny Jordan, special administrator) sued defendants for negligence and wrongful death.
  • Defendants moved to compel arbitration, arguing Reba bound Kenneth either by signing individually (making him a third‑party beneficiary) or by acting under a power of attorney; plaintiffs contended Reba lacked authority and the agreement was ambiguous/incomplete.
  • The trial court denied the motion, finding the agreement ambiguous, noting the resident was not identified, the POA box was unchecked, and Reba signed as “spouse” (not as POA) even though she had a POA; court held the arbitration agreement unenforceable.
  • Defendants appealed; the Court of Appeals reviewed de novo and affirmed the denial, construing ambiguities against the drafter and rejecting both agency/POA and third‑party‑beneficiary theories.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the arbitration agreement binds the decedent/estate Agreement fails to show Reba had authority; ambiguous drafting; not enforceable Reba signed the form and bound Kenneth either individually or as his agent/POA Agreement ambiguous; construed against drafter; Reba did not sign with legal authority to bind Kenneth
Whether third‑party‑beneficiary doctrine binds decedent if Reba signed individually No — no valid contract exists to confer beneficiary rights Yes — if Reba signed individually, Kenneth is an intended third‑party beneficiary Rejected — third‑party doctrine requires a valid contract between the promisor and promisee; none here
Whether agency/POA existed to authorize arbitration No evidence in the agreement that Reba signed as POA; agency not presumed Reba held a POA and thus could bind Kenneth Burden on facility to prove agency; agreement contains no indication of authority; court found no representative signing

Key Cases Cited

  • Courtyard Gardens Health & Rehab., LLC v. Quarles, 428 S.W.3d 437 (arbitration is contractual; de novo review)
  • Bigge Crane & Rigging Co. v. Entergy Ark., Inc., 457 S.W.3d 265 (contracts presumptively bind only parties)
  • Amer. Ins. Co. v. Cazort, 871 S.W.2d 575 (third‑party obligations not presumed)
  • Elsner v. Farmers Ins. Group, Inc., 220 S.W.3d 633 (contract construed against drafter when ambiguous)
  • Hickory Heights Health & Rehab. v. Cook, 557 S.W.3d 286 (ambiguities resolved against drafter in arbitration context)
  • Pine Hills Health & Rehab. LLC v. Talley, 546 S.W.3d 492 (no third‑party arbitration without valid bilateral agreement)
  • Robinson Nursing & Rehab. Ctr., LLC v. Phillips, 586 S.W.3d 624 (form drafting can show intent re: responsible party vs. contracting party)
  • Progressive Eldercare Servs.-Chicot, Inc. v. Long, 449 S.W.3d 324 (third‑party‑beneficiary elements)
  • Price v. Willbanks, 374 S.W.3d 28 (ambiguities construed against drafter)
  • Carter v. Four Seasons Funding Corp., 97 S.W.3d 387 (contract construction principles)
Read the full case

Case Details

Case Name: Innisfree Health & Rehab, LLC; Central Arkansas Nursing Centers, Inc.; Nursing Consultants, Inc., D/B/A Professional Nursing and Rehabilitation Services; Innisfree Estate, LLC; And Michael S. Morton v. Kenny Jordan, as Special Administrator of the Estate of Kenneth Harold Jordan, and on Behalf of the Wrongful Death Beneficiaries of Kenneth Harold Jordan
Court Name: Court of Appeals of Arkansas
Date Published: Nov 18, 2020
Citation: 2020 Ark. App. 518
Court Abbreviation: Ark. Ct. App.
Log In
    Innisfree Health & Rehab, LLC; Central Arkansas Nursing Centers, Inc.; Nursing Consultants, Inc., D/B/A Professional Nursing and Rehabilitation Services; Innisfree Estate, LLC; And Michael S. Morton v. Kenny Jordan, as Special Administrator of the Estate of Kenneth Harold Jordan, and on Behalf of the Wrongful Death Beneficiaries of Kenneth Harold Jordan, 2020 Ark. App. 518