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Palm Garden of Healthcare Holdings, LLC v. Haydu
209 So. 3d 636
| Fla. Dist. Ct. App. | 2017
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Background

  • On Jan. 9, 2015, Valerie Haydu signed a nursing-home admission agreement for her father, James Yongue, at Palm Garden of Orlando; the agreement contained an optional arbitration clause.
  • Yongue suffered a serious aspiration event on Jan. 11, 2015, was hospitalized, and never returned to the facility; he could not verbally communicate at the time of the arbitration dispute.
  • Haydu later obtained power of attorney and sued the nursing home for negligence arising from the aspiration event. Appellants moved to compel arbitration based on the admissions agreement Haydu signed.
  • At the motion hearing the evidence conflicted: Buzon (admissions director) testified Yongue gave verbal consent and that his signature appeared on the form; Haydu testified she had no authority, did not recognize the signature, signed in a dim room without Buzon present, and did not know why Yongue did not sign.
  • The trial court found Yongue competent but concluded the record did not establish that Yongue or Haydu (as his agent) entered into a binding arbitration agreement; no power of attorney existed at the time and there was insufficient proof of actual or apparent agency.
  • The Fifth District affirmed, holding appellants failed to meet their burden to prove an enforceable written arbitration agreement binding Yongue.

Issues

Issue Plaintiff's Argument (Haydu) Defendant's Argument (Appellants) Held
Whether a valid written agreement to arbitrate binds Yongue Haydu argued she lacked authority to bind Yongue; he did not validly consent and did not sign Appellants argued Yongue gave verbal consent and Haydu signed with his authorization, so the arbitration clause binds him Trial court: no — insufficient evidence of Yongue’s consent or of Haydu’s agency to bind him; affirmed
Whether a nonsignatory (Yongue) can be bound by acts of a signatory (Haydu) Haydu: she was not authorized; no apparent or implied agency existed Appellants: agency can be implied; Haydu acted as Yongue’s agent when she signed Court: agency not established — no representation by principal, no reliance by third party, no change in position; acts of agent alone insufficient
Burden of proof for compelling arbitration Haydu: burden on appellants to show enforceable written agreement Appellants: claimed documentary and testimonial evidence satisfied burden Court: appellants failed to carry their burden to prove an enforceable written arbitration agreement
Whether lack of formal POA is dispositive to agency Haydu: absence of POA shows no authority Appellants: POA not required; agency can arise by oral or implied consent Court: lack of POA not dispositive, but record still lacks evidence of agency; affirmed

Key Cases Cited

  • Seifert v. U.S. Home Corp., 750 So.2d 633 (Fla. 1999) (elements for ruling on motion to compel arbitration)
  • Stalley v. Transitional Hosps. Corp. of Tampa, Inc., 44 So.3d 627 (Fla. 2d DCA 2010) (nonsignatory bound when signatory authorized as agent; agency principles govern)
  • Mobil Oil Corp. v. Bransford, 648 So.2d 119 (Fla. 1995) (elements of apparent agency)
  • Fonte v. AT&T Wireless Servs., Inc., 903 So.2d 1019 (Fla. 4th DCA 2005) (standard of review for arbitration motions is mixed law and fact)
  • Fi-Evergreen Woods, LLC v. Estate of Vrastil, 118 So.3d 859 (Fla. 5th DCA 2013) (deference to factual findings; review standard)
  • Steve Owren, Inc. v. Connolly, 877 So.2d 918 (Fla. 4th DCA 2004) (proponent of arbitration bears burden to establish enforceable agreement)
  • Mobil Oil Corp. v. Bransford, 648 So.2d 119 (Fla. 1995) (apparent agency requires representation by principal, reliance, and change in position)
  • Sovereign Healthcare of Tampa, LLC v. Estate of Yarawsky, 150 So.3d 873 (Fla. 2d DCA 2014) (similar facts: resident did not sign; signer lacked authority; arbitration clause not enforceable)
Read the full case

Case Details

Case Name: Palm Garden of Healthcare Holdings, LLC v. Haydu
Court Name: District Court of Appeal of Florida
Date Published: Jan 20, 2017
Citation: 209 So. 3d 636
Docket Number: Case 5D16-2568
Court Abbreviation: Fla. Dist. Ct. App.