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201 So. 3d 1146
Ala.
2016
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Background

  • Lorene S. Jones was admitted to Whitesburg Gardens (Kindred) after knee surgery; her daughter Yvonne Barbour signed admission forms and an optional Alternative Dispute Resolution (ADR) (arbitration) agreement on January 21–23, 2013.
  • Barbour signed as "Resident Representative" on the admission agreement and as "Resident or Legal Representative" on the ADR form; the ADR form stated the facility could rely on a legal representative’s signature.
  • Jones later sued for injuries and substandard care; Kindred moved to compel arbitration based on the ADR agreement; the trial court denied the motion and Kindred appealed.
  • Key factual dispute: whether Jones was mentally competent when Barbour signed (Barbour claimed Jones was medicated and incompetent; Kindred relied on facility/medical records indicating Jones was alert during admission).
  • The court evaluated whether Barbour had authority (actual or apparent) to bind Jones, and whether a valid arbitration contract calling for arbitration existed.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Was there a valid arbitration contract binding Jones? Jones: No — she never consented; Barbour lacked authority; Jones was medicated/incompetent when forms were signed. Kindred: Yes — ADR was executed and applies to Jones; interstate-commerce clause invokes FAA. Held: Yes — Kindred met its burden; ADR is a valid arbitration agreement binding Jones.
Was Jones mentally competent when ADR was signed? Jones: Incompetent due to heavy pain medication; therefore cannot be bound. Kindred: Medical records show Jones was alert/competent during admission; no evidence of incapacity. Held: Jones was competent during admission and stay; no evidence of severe impairment like in prior cases.
Did Barbour have authority to bind Jones? Jones: Barbour had no actual authority and Jones did not authorize ratification. Kindred: Barbour had apparent authority because Jones passively permitted her to act and did not object while accepting benefits. Held: Barbour had apparent authority; Jones passively permitted Barbour to act, so signature binds Jones.
Burden of proof for existence of arbitration agreement Jones: (argued nonexistence/incompetency) Kindred: (initial burden to show contract; then nonmovant must show invalidity) Held: Kindred satisfied burden to show a contract; because Jones failed to show invalidity, arbitration compelled.

Key Cases Cited

  • SSC Montgomery Cedar Crest Operating Co. v. Bolding, 130 So.3d 1194 (Ala. 2013) (distinguishes enforcement where resident was incompetent; discusses limits on binding incompetents)
  • Diversicare Leasing Corp. v. Hubbard, 189 So.3d 24 (Ala. 2015) (resident with severe lifetime impairment could not be bound by mother's signature)
  • Tennessee Health Mgmt., Inc. v. Johnson, 49 So.3d 175 (Ala. 2010) (competent resident bound by representative’s signature through apparent authority and passive acquiescence)
  • Carraway v. Beverly Enters. Alabama, Inc., 978 So.2d 27 (Ala. 2007) (apparent authority applied where resident accepted admission benefits and did not object to representative’s actions)
  • Noland Health Servs., Inc. v. Wright, 971 So.2d 681 (Ala. 2007) (plurality: arbitration provision signed by family member ineffective where resident was incompetent)
  • Briarcliff Nursing Home, Inc. v. Turcotte, 894 So.2d 661 (Ala. 2004) (nursing-home arbitration precedents addressing representative signatures)
  • Owens v. Coosa Valley Health Care, Inc., 890 So.2d 983 (Ala. 2004) (discusses application of arbitration agreements in nursing-home admission contexts)
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Case Details

Case Name: Kindred Nursing Centers East, LLC v. Jones
Court Name: Supreme Court of Alabama
Date Published: Feb 26, 2016
Citations: 201 So. 3d 1146; 2016 Ala. LEXIS 26; 1140871
Docket Number: 1140871
Court Abbreviation: Ala.
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    Kindred Nursing Centers East, LLC v. Jones, 201 So. 3d 1146