201 So. 3d 1146
Ala.2016Background
- 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)
