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