Lang v. Beachwood Pointe Care Ctr.
2014 Ohio 1238
Ohio Ct. App.2014Background
- Stevens was admitted to Beachwood Pointe Care Center; stepdaughter signed admission papers as Stevens's representative, including an arbitration clause.
- Stevens did not sign any paperwork, and no power of attorney was granted to the stepdaughter at admission.
- Beachwood Pointe argued the stepdaughter had apparent authority to bind Stevens to arbitrate.
- The court applied the apparent authority test requiring two conjunctive elements to be satisfied.
- Beachwood Pointe knew Stevens was sometimes forgetful and potentially lacked the capacity to understand admission procedures.
- The court held there was no binding arbitration agreement against Stevens and affirmed the judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Did the stepdaughter have apparent authority to bind Stevens to arbitration? | Lang contends stepdaughter acted with authority to bind Stevens. | Beachwood Pointe asserts apparent authority existed to bind Stevens. | No apparent authority; arbitration not binding. |
Key Cases Cited
- AT&T Technologies, Inc. v. Communications Workers of Am., 475 U.S. 643 (U.S. 1986) (arbitration contracts treated as contracts; mixed question of fact-law in existence)
- Nationwide Mut. Fire Ins. Co. v. Guman Bros. Farm, 73 Ohio St.3d 107 (Ohio 1995) (existence of arbitration agreement is a mixed question of fact and law)
- Alexander v. Buckeye Pipe Line Co., 53 Ohio St.2d 241 (Ohio 1978) (contract to arbitrate construed as a matter of law once found)
- Master Consolidated Corp. v. BancOhio Natl. Bank, 61 Ohio St.3d 570 (Ohio 1991) (apparent authority test requires two-part conjunctive showing)
- Licata v. GGNSC Malden Dexter LLC, 466 Mass. 793 (Mass. 2014) (no silent assent to lack of knowledge constitutes delegation)