674 S.W.3d 881
Tenn.2023Background
- Decedent David Welch (Down syndrome) executed a 2012 durable power of attorney for health care (POA) naming his brother James as agent; two witnesses attested David appeared of sound mind.
- In 2016 James signed admission paperwork for Christian Care as David’s "Representative/POA," including an arbitration agreement that was not a condition of admission.
- David died in 2017; James (as estate administrator) sued Christian Care in 2018 for wrongful death and related negligence and health-care-liability claims.
- Christian Care moved to compel arbitration; the trial court held an evidentiary hearing, found by clear and convincing evidence that David lacked capacity when he signed the POA, and denied the motion to compel.
- The Court of Appeals reversed, concluding immunity under the Health Care Decisions Act (and Owens footnote applying the Durable Power of Attorney Act) barred inquiry into the POA’s validity; the Tennessee Supreme Court granted review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether statutory immunity for providers bars a court from considering evidence of the principal’s mental capacity to execute a durable POA used by an agent to sign an arbitration agreement | Welch: immunity does not apply because the facility did not "rely" or "comply" with the arbitration decision (arbitration was not a condition of admission) and the statutes protect against liability, not forum-choice challenges | Christian Care: immunity provisions (Tenn. Code Ann. §34-6-208 and §68-11-1810) and Owens prohibit looking beyond the POA’s face where provider in good-faith believes agent is authorized | Held: Defendants do not meet either statute’s requirements for immunity; trial court correctly considered capacity evidence; Owens footnote limited to extent inconsistent is overruled |
| Whether the trial court erred in finding by clear and convincing evidence that David lacked capacity to execute the POA | Welch: trial court’s factual finding was supported by medical records and expert evidence | Christian Care: evidence did not meet the clear-and-convincing standard | Held: Supreme Court did not decide the factual sufficiency; remanded to Court of Appeals for consideration of that issue |
Key Cases Cited
- Owens v. National Health Corp., 263 S.W.3d 876 (Tenn. 2007) (held agent could sign nursing-home arbitration agreement; footnote limiting discovery on POA validity was applied but is overruled here to the extent inconsistent)
- State v. Bristol, 654 S.W.3d 917 (Tenn. 2022) (appellate courts should give parties notice and opportunity if addressing issues not presented)
- Harvey ex rel. Gladden v. Cumberland Tr. & Inv. Co., 532 S.W.3d 243 (Tenn. 2017) (arbitration changes forum, not substantive liability)
- Berent v. CMH Homes, Inc., 466 S.W.3d 740 (Tenn. 2015) (courts decide existence and enforceability of arbitration agreements before sending merits to arbitration)
- Lawson v. Hawkins Cnty., 661 S.W.3d 54 (Tenn. 2023) (statutes in derogation of common law must be strictly construed)