344 Ga. App. 682
Ga. Ct. App.2018Background
- Marvin Coleman, a nursing-home resident, executed an Advance Directive naming his sister and brother‑in‑law Charles Biggerstaff as health‑care agents with authority to make health‑care decisions.
- Coleman was admitted to Heritage Healthcare of Forsyth in April 2013 and later transferred to Heritage Healthcare of Macon (Pruitthealth‑Macon) in March 2014 for memory care.
- Coleman personally signed the Forsyth facility admission and arbitration paperwork; at Macon, Biggerstaff signed the admission forms and a voluntary arbitration agreement as “Patient/Resident Representative” while Coleman was not present and did not sign.
- Coleman sued the Macon facility and others for injuries sustained at the nursing home; defendants moved to compel arbitration based on the arbitration agreement Biggerstaff executed.
- The trial court stayed the lawsuit pending arbitration; the Court of Appeals granted interlocutory review and reversed the stay, holding the defendants failed to prove a valid arbitration agreement binding Coleman.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether there was express authority for Biggerstaff to sign arbitration on Coleman’s behalf | Coleman’s advance directive limited Biggerstaff to health‑care decisions; did not authorize waiving jury trial | Biggerstaff was Coleman’s health‑care agent/representative and thus authorized to sign admission paperwork including arbitration | No — arbitration was voluntary and not a health‑care decision; advance directive did not grant express authority to waive jury trial |
| Whether Biggerstaff had apparent/implied authority to bind Coleman | Coleman never manifested consent to have Biggerstaff sign arbitration; facility did not confirm authority with Coleman | Facility relied on Biggerstaff’s representations and Coleman’s prior designation as representative | No — defendants failed to show principal’s words or conduct created reasonable belief that Biggerstaff could execute arbitration; facility did not verify authority |
| Whether Coleman is bound as a third‑party beneficiary of an agreement between Biggerstaff and the facility | Coleman repudiated any benefit; arbitration was not part of Coleman’s required admission or essential to care | Even if Biggerstaff signed individually, contract benefitted Coleman making him a third‑party beneficiary | No — cannot bind an unsuspecting third party to arbitration absent evidence the third party accepted or sought the benefit; Coleman not bound |
Key Cases Cited
- Ashburn Health Care Center v. Poole, 286 Ga. App. 24 (health‑care surrogate cannot sign away jury right unless arbitration is required for admission)
- Triad Health Mgmt. of Ga., III v. Johnson, 298 Ga. App. 204 (party seeking arbitration bears burden to show valid agreement)
- United Health Svcs. of Ga. v. Alexander, 342 Ga. App. 1 (traditional agency principles may bind nonsignatory, but principal must assent)
- Life Care Centers of Am. v. Smith, 298 Ga. App. 739 (execution of arbitration is a health‑care decision only when required for admission)
- McKean v. GGNSC Atlanta, 329 Ga. App. 507 (apparent or implied authority cannot be established solely by acts of the purported agent)
- Lankford v. Orkin Exterminating Co., 266 Ga. App. 228 (third‑party beneficiary is bound by enforceable contract terms when asserting rights under it)