Ping v. Beverly Enterprises, Inc.
2012 Ky. LEXIS 108
Ky.2012Background
- Ping, as executrix of Alma Duncan’s estate, sues Beverly Enterprises for negligent care and wrongful death.
- Duncan was a resident at Beverly’s facility; her death occurred about six months after admission.
- Duncan had a durable power of attorney given to Ping in 1998, authorizing health care and financial decisions.
- Ping signed a nursing home admission packet, including a separate Arbitration Agreement, as Duncan’s Authorized representative, without reading its contents.
- The Arbitration Agreement states disputes must be arbitrated and binds successors; it is not a condition of admission and includes a waiver of court rights.
- Ky Supreme Court held Ping lacked actual authority to bind Duncan to arbitration, no apparent authority or estoppel, and wrongful death beneficiaries are not bound; case remanded to circuit court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Authority to bind to arbitration | Estate argues Ping lacked authority to waive Duncan’s rights. | Beverly contends Ping had broad POA authority. | Arbitration not enforceable against Duncan |
| Apparent authority and estoppel | Estate contends no apparent authority and no equitable estoppel. | Beverly argues Ping’s actions misled Beverly into believing authority existed. | No apparent authority or estoppel against Estate |
| Wrongful death beneficiaries bound? | Estate asserts wrongful death claim independent from Duncan’s. | Arbitration clause extends to beneficiaries through contract terms. | Wrongful death beneficiaries not bound to decedent’s arbitration clause |
Key Cases Cited
- First Options of Chicago, Inc. v. Kaplan, 514 U.S. 938 (U.S. 1995) (burden on court to determine existence of valid arbitration agreement; state contract formation governs)
- Louisville/Peterbilt, Inc. v. Cox, 132 S.W.3d 850 (Ky. 2004) (state act governs arbitration enforceability; de novo review on contract formation)
- North Fork Collieries, LLC v. Hall, 322 S.W.3d 98 (Ky. 2010) (FAA and state law interplay; de novo review of contract formation rules)
- Ally Cat, LLC v. Chauvin, 274 S.W.3d 451 (Ky. 2009) (state act applies to arbitration agreements; questions forum validity)
- Vaden v. Discover Bank, 556 U.S. 49 (U.S. 2009) (FAA enforcement of arbitration agreements in state court)
- Summit Health, Ltd. v. Pinhas, 500 U.S. 322 (U.S. 1991) (interstate commerce basis for FAA applicability in health care)