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Licata v. GGNSC Malden Dexter LLC
466 Mass. 793
| Mass. | 2014
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Background

  • Licata, as administrator of Rita Licata’s estate, filed a wrongful death action in Superior Court.
  • GGNSC moved to compel arbitration based on an arbitration agreement Salvatore signed purportedly for Rita.
  • Salvatore signed as Rita’s “Authorized representative” though Rita did not sign and did not ratify.
  • Rita had a health care proxy appointing Salvatore as her health care agent, which becomes effective only if a physician determines incapacity.
  • Rita’s transfer to a nursing facility occurred after the proxy was signed, with Salvatore handling admissions; no clear activation of the proxy occurred at signing.
  • Rita died on August 10, 2009; the estate asserted claims including negligence, breach of contract, and 93A violations; court denied arbitration, allowing claims to proceed in court.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Authority under health care proxy to sign arbitration Licata as agent could bind Rita via proxy. Proxy did not authorize arbitration signing. Salvatore lacked authority; proxy activation not triggered.
Authority as a "responsible party" under §16 Salvatore could act on Rita’s behalf for informed consent. Responsible party authority does not extend to arbitration agreements. No authority to bind Rita to arbitration.
Apparent authority to sign arbitration Salvatore’s signs were on Rita’s behalf; apparent authority exists. No evidence Rita’s conduct showed consent; principal’s words control. No apparent authority established.
Ratification by Rita Rita could ratify Salvatore’s act after disclosure of facts. Ratification requires knowledge and affirmative conduct; none shown. No ratification proven.
Third-party beneficiary status of Rita Arbitration benefits could bind Rita as intended beneficiary. No contract signed by authorized parties; no contract exists. No third-party beneficiary from a non-existent contract.

Key Cases Cited

  • Royal-Globe Ins. Co. v. Craven, 411 Mass. 629 (1992) (activation of a health care proxy requires proper statutory determination of incapacity)
  • Haufler v. Zotos, 446 Mass. 489 (2006) (apparent authority and agency concepts in contract formation)
  • Shine v. Vega, 429 Mass. 456 (1999) (emergency consent and responsible party authority in medical decisions)
  • Guardianship of Roe, 383 Mass. 415 (1981) (principles on surrogate decision-making and patient rights)
  • Cohen v. Bolduc, 435 Mass. 608 (2002) (capacity distinctions and health care decision-making)
  • Kidder v. Greenman, 283 Mass. 601 (1933) (ratification standards and knowledge of material facts)
Read the full case

Case Details

Case Name: Licata v. GGNSC Malden Dexter LLC
Court Name: Massachusetts Supreme Judicial Court
Date Published: Jan 13, 2014
Citation: 466 Mass. 793
Court Abbreviation: Mass.