605 S.W.3d 291
Ark. Ct. App.2020Background
- Plaintiff Anita Moss (individually and as special administratrix for Ruby Muhammad) sued Arbor Oaks and its owners for multiple tort claims arising from Muhammad’s care.
- On January 29, 2013, Moss signed resident-admission paperwork that included a broad arbitration agreement covering disputes over $15,000 arising from the resident’s stay.
- The same day Muhammad executed a handwritten notation on a December 2012 power-of-attorney form revoking the prior agent and appointing Moss for “financial & healthcare power of attorney,” signed by Muhammad and two witnesses.
- Appellants (the nursing home and owners) moved to compel arbitration, arguing Moss had authority under the handwriting-created power of attorney to bind Muhammad to arbitration.
- The Hot Spring County Circuit Court denied the motion to compel arbitration; appellants appealed. The appellate court reviewed de novo whether a valid agreement to arbitrate existed.
- The Court of Appeals held the handwritten power-of-attorney wording (limited to “financial & healthcare”) did not, as a matter of law, grant authority to agree to arbitration; therefore there was no mutual assent and no enforceable arbitration agreement. The denial of the motion to compel was affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a valid arbitration agreement existed because Moss, as agent under a Jan. 29, 2013 power of attorney, could bind Muhammad to arbitration | Moss argued the handwriting did not grant authority to waive court rights or agree to arbitration; the generic "financial & healthcare" language is insufficient | Appellants argued the handwritten revocation/appointment created a valid power of attorney under Ark. Code § 28-68-105, giving Moss authority to sign the arbitration agreement | The power-of-attorney wording did not confer authority to agree to arbitration; absence of mutual assent = no valid arbitration agreement; motion to compel arbitration properly denied |
Key Cases Cited
- Country Club Gardens, LLC v. Alexander, 599 S.W.3d 363 (Ark. App. 2020) (de novo review and two-threshold questions for motions to compel arbitration)
- Courtyard Gardens Health & Rehab., LLC v. Williamson, 509 S.W.3d 685 (Ark. App. 2016) (agent lacked authority to sign arbitration when statutory POA categories did not include claims and litigation)
- In re Estate of Garrett, 100 S.W.3d 72 (Ark. App. 2003) (definition and nature of power of attorney; authority determined from instrument’s plain language)
- Vogelgesang v. U.S. Bank, N.A., 211 S.W.3d 575 (Ark. App. 2005) (principal’s subjective intent yields to the plain meaning of words in the instrument)
