Perry v. Sovereign Healthcare of Metro West
100 So. 3d 146
| Fla. Dist. Ct. App. | 2012Background
- Elizabeth Perry resided at the Facility Nov 2004–Oct 2009; Johnson signed the residency agreement containing an arbitration clause on Perry’s behalf; in 2010, Joyce Perry filed suit asserting nursing-home rights violations; the Facility moved to compel arbitration; the trial court held Perry was a third-party beneficiary and that the arbitration clause was enforceable; the court relied on Estate of Linton to find third-party beneficiary status; the agreement lacked Perry’s signature and the space for resident and responsible party was blank; no evidence Perry authorized Johnson to bind her to arbitration; the panel concludes no valid agreement existed for Perry and reverses; the matter is remanded for merits.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is there a valid arbitration agreement binding Perry? | Perry: no valid agreement; Johnson lacked authority to sign for Perry; Perry competent | Facility: agreement valid since Johnson signed as responsible party; terms enforceable | No valid arbitration agreement; reversed |
| Is Perry a third-party beneficiary of the arbitration clause? | Perry was not bound as a beneficiary given no valid agreement | If an agreement existed, Perry could be a third-party beneficiary | Not reached as no valid agreement; alternative reasoning confirms error |
Key Cases Cited
- Estate of McKibbin, 977 So.2d 612 (Fla. 2d DCA 2008) (signing authority required; power of attorney cannot bind resident to arbitration if not authorized)
- Estate of Linton, 953 So.2d 574 (Fla. 1st DCA 2007) (third-party beneficiary finding where authority to sign existed; distinguishable here)
- Carrington Place of St. Pete, LLC v. Estate of Milo ex rel. Brito, 19 So.3d 340 (Fla. 2d DCA 2009) (child lacked authority to bind mother to arbitration; proper denial of motion to compel)