Kindred Nursing Centers Ltd. Partnership v. Chrzanowski
338 Ga. App. 708
Ga. Ct. App.2016Background
- Decedent Jeanne Chrzanowski was admitted to Kindred Nursing Centers for rehab on Dec 4, 2011 after an ankle fracture; admissions paperwork (including an ADR arbitration agreement) was completed and signed on Dec 7.
- Medical records showed COPD, coronary artery disease, hypertension, prior cognitive impairment; hospital notes included altered mental state, mild cognitive impairment, depression, and amnesia.
- Assessments at Kindred before and on Dec 7 documented intermittent confusion, impaired comprehension/memory/judgment, and risk factors (UTI, medications, oxygen dependency); some progress notes showed Jeanne alert and oriented.
- Plaintiffs (Jeanne’s sons, as estate) sued for wrongful death/negligence; Kindred moved to compel arbitration under the ADR Agreement; plaintiffs opposed, arguing Jeanne lacked capacity when she signed.
- Trial court heard deposition and expert testimony (plaintiffs’ geriatrician Dr. Lively; defendant’s psychiatrist Dr. Grove) and admissions staff testimony (Sandra Stodghill). The trial court denied the motion to compel, applying a summary-judgment standard and finding sufficient evidence of incapacity.
- Georgia Court of Appeals vacated and remanded, holding the trial court applied the wrong standard and improperly shifted the burden of proof to Kindred; on remand trial court must determine whether plaintiffs met their burden to prove incapacity at the moment of signing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Jeanne had capacity to sign the ADR arbitration agreement | Jeanne lacked capacity due to dementia, delirium, medication effects, UTI, hypoxia; expert Lively: lacked capacity on Dec 7 | Jeanne was alert and oriented when signing; admissions staff observed lucidity; expert Grove: impairment was transient delirium, not incapacity | Dispositive factual issue goes to the trial court on remand; court vacated denial because trial court used improper summary-judgment standard and shifted burden to defendant |
| Proper burden/standard when capacity is challenged in a motion to compel arbitration | Burden should be on the party seeking to enforce arbitration? (trial court applied summary-judgment standard) | Georgia law presumes competency; party challenging capacity bears burden to prove incapacity | Court held challenging party (plaintiffs) bears burden to show incapacity at the time of signing; summary-judgment standard was improper |
| Whether trial court may resolve capacity on record evidence when parties dispute facts | Plaintiffs relied on records and expert testimony to show incapacity | Kindred relied on admissions testimony and its expert to show capacity; both sides offered factual evidence | Court: trial court may make factual determinations from evidence outside pleadings under OCGA § 9-9-6(a), but must apply correct burden and may resolve conflicts on remand |
| Effect of applying summary-judgment standard to motion to compel arbitration | Plaintiffs argued summary-judgment standard supported denial | Kindred argued the standard improperly shifted burden and undermined arbitration policy | Held that using summary-judgment standard was improper and would convert arbitration challenges into mini-trials; remand required |
Key Cases Cited
- Ashburn Health Care Center v. Poole, 286 Ga. App. 24 (court reviews denial of motion to compel arbitration de novo)
- Triad Health Mgmt. of Ga., III v. Johnson, 298 Ga. App. 204 (whether valid arbitration agreement is for the court under state contract principles)
- Anderson v. Benton, 295 Ga. App. 851 (distinguished — summary-judgment standard applied there because parties moved for summary judgment)
- Helms v. Franklin Builders, 305 Ga. App. 863 (Georgia public policy favors arbitration)
- Operations Mgmt. Intl. v. City of Forsyth, 288 Ga. App. 469 (arbitration avoids court litigation)
- Nelson v. State Farm Life Ins. Co., 178 Ga. App. 670 (party alleging incapacity bears burden; contracts voidable if maker non compos mentis)