McFarren v. Emeritus at Canton
997 N.E.2d 1254
Ohio Ct. App.2013Background
- Resident Angeline Rinker was admitted to Emeritus at Canton in July 2010, fell on July 15, 2010, suffered a broken hip, and died July 21, 2010; her daughter Wanda McFarren (as administratrix) sued the facility for negligence and wrongful death.
- Rinker executed a Health Care Power of Attorney (May 12, 2008) naming Raymond Haidet as agent and naming alternates (including grandson Douglas Gerber and daughter Wanda McFarren); the POA stated it was effective only when Rinker could not make her own health‑care decisions.
- During admission, Gerber signed a residency agreement and a separate "Agreement to Resolve Disputes by Binding Arbitration" on behalf of Rinker; McFarren did not sign the arbitration agreement.
- Gerber’s affidavit stated he had no physician’s determination that Rinker lacked capacity when he signed; Rinker’s primary care physician’s health assessment completed the next day listed cognitive functioning as "good."
- Defendants moved to stay proceedings and compel arbitration based on the arbitration agreement signed by Gerber; the trial court granted the stay and compelled arbitration. The appellate court reversed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Gerber had authority under the health‑care POA to sign the arbitration agreement | McFarren: POA only effective if physician determines incapacity; no such determination, so Gerber lacked authority | Emeritus: presumption favoring arbitration; facility could rely on representative’s signature/POA language and family roles | Court: Gerber lacked authority because POA only effective upon inability to make decisions and no evidence Rinker lacked capacity when Gerber signed; arbitration unenforceable as to Rinker’s claims |
| Whether a decedent’s pre‑dispute arbitration agreement binds non‑signing wrongful‑death beneficiaries | McFarren: Peters controls — beneficiaries who did not sign cannot be compelled to arbitrate wrongful‑death claims | Emeritus: Peters was effectively overruled by federal law per Marmet; federal precedent favors enforcement of predispute arbitration clauses | Court: Peters remains controlling in Ohio; a decedent cannot bind non‑signing beneficiaries to arbitrate wrongful‑death claims; arbitration unenforceable as to beneficiaries’ wrongful‑death claim |
Key Cases Cited
- Taylor Bldg. Corp. of Am. v. Benfield, 117 Ohio St.3d 352 (Ohio 2008) (recognizes Ohio public policy favoring arbitration)
- Council of Smaller Ents. v. Gates, McDonald & Co., 80 Ohio St.3d 661 (Ohio 1998) (arbitration is a matter of contract; parties cannot be compelled to arbitrate disputes they did not agree to)
- Peters v. Columbus Steel Castings Co., 115 Ohio St.3d 134 (Ohio 2007) (decedent cannot bind non‑signing beneficiaries to arbitrate wrongful‑death claims)
- Marmet Health Care Ctr., Inc. v. Brown, 132 S. Ct. 1201 (U.S. 2012) (U.S. Supreme Court held categorical state rules forbidding predispute arbitration of certain nursing‑home claims conflict with the FAA)