Kindred Nursing Centers Ltd. Partnership v. Brown
2011 Ky. App. LEXIS 61
| Ky. Ct. App. | 2011Background
- Childress, an incapacitated adult requiring full-time skilled nursing care, resided at Bashford East Health Care from February 16, 2008, to September 11, 2008.
- Brown, Childress’s mother, admitted him and signed an Alternative Dispute Resolution (ADR) Agreement in her own name, without indicating any capacity or guardianship.
- Brown later became Childress’s guardian on March 3, 2009, and filed the underlying negligence action on Childress’s behalf in Jefferson Circuit Court.
- Appellants moved to compel arbitration on August 28, 2009; the trial court denied, finding Brown lacked authority to bind Childress and acted in Childress’s rights rather than her own.
- Appellants argued Brown’s guardianship or apparent authority, estoppel, and ratification compelled arbitration; Appellee argued lack of authority and no ratification, and that the FAA/KUAA framework governs the dispute.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Authority to bind Childress via ADR | Brown signed before guardianship; no authority to bind Childress. | Brown acted as guardian or had apparent/actual authority to bind Childress. | ADR not enforceable against Childress; lack of authority shown. |
| Equitable estoppel by Brown or Childress | Brown or Childress should be estopped from denying the ADR. | No estoppel; Brown acted devoid of guardian authority; Childress cannot be bound. | No estoppel; Brown as guardian or Childress not estopped from denying validity. |
| Apparent or actual authority to bind Childress | Appellants relied on Brown's signature under authority. | No evidence of actual or apparent authority to bind Childress. | No actual or apparent authority found to bind Childress. |
| Ratification by Brown post-guardianship | Brown’s post-guardianship conduct ratified the ADR. | No ratification by Childress; Brown’s post-guardianship acts cannot bind him. | No ratification; ADR remains non-enforceable against Childress. |
Key Cases Cited
- Mt. Holly Nursing Center v. Crowdus, 281 S.W.3d 809 (Ky.App.2008) (arbitration threshold matters; KUAA and FAA alignment)
- General Steel Corp. v. Collins, 196 S.W.3d 18 (Ky.App.2006) (enforcement of arbitration agreements; burden on movant)
- Weiand v. Board of Trustees of Kentucky Retirement Systems, 25 S.W.3d 88 (Ky.2000) (elements of equitable estoppel)
- Akers v. Pike County Bd. of Educ., 171 S.W.3d 740 (Ky.2005) (equitable estoppel standards)
- Capurso v. Johnson, 248 S.W.2d 908 (Ky.1952) (ratification/adoption when acting as agent for principal)
- American General Home Equity, Inc. v. Kestel, 253 S.W.3d 543 (Ky.2008) (KUAA consistent with FAA; grounds to revoke arbitration)
- Louisville Peterbilt, Inc. v. Cox, 132 S.W.3d 850 (Ky.2004) (KUAA consistent with FAA interpretation)
- Galloway Motor Co. v. Huffman’s Adm’r, 281 Ky. 841, 137 S.W.2d 379 (Ky.1939) (declarations of an agent inadmissible to prove agency)
- Terbovitz v. Fiscal Court of Adair County, 825 F.2d 111 (6th Cir.1987) (agency authority principles; actual authority concept)