635 S.W.3d 502
Ark. Ct. App.2021Background
- Lavarn Turner executed a power of attorney (POA) in 2012 naming his daughter, Angela Everett, as agent; the POA contains specific grants re: banking, a particular real property, and a clause stating she may act "in all matters that the Principal would normally represent himself in," followed by a sentence about "personal possessions."
- Turner was admitted to Belle View Estates (PES) in 2013; Everett signed the facility admission and arbitration agreements as his representative.
- Turner died in 2017; in 2019 Everett (as special administrator) sued PES for negligence, malpractice, breach of contract, and DTPA violations.
- PES moved to compel arbitration based on the arbitration agreement Everett signed on Turner’s behalf, arguing the POA gave her general authority under Ark. Code Ann. § 28-68-201(c).
- The circuit court denied the motion and reconsideration, finding the POA wording problematic/equivocal and not an unambiguous general grant of authority to bind Turner to arbitration.
- On interlocutory appeal, the Court of Appeals reviewed de novo whether the POA authorized Everett to sign an arbitration agreement for Turner and affirmed the denial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Turner's POA constituted a general grant of authority under Ark. Code § 28-68-201(c) authorizing Everett to bind him to arbitration | POA limited to banking, specified real property, and personal possessions; it did not grant general authority to agree to arbitration | The clause "in all matters that the Principal would normally represent himself in" creates a § 28-68-201(c) general grant that includes arbitration authority | POA does not unambiguously grant general authority; taken as a whole it more naturally limits authority to specified subjects and does not authorize Everett to bind Turner to arbitration |
| Whether the POA is ambiguous and requires extrinsic evidence or is a matter of law for the court | POA wording creates a restrictive list; ambiguous language supports plaintiff's view it was not a general grant | Defendant urges statutory construction under the Uniform Power of Attorney Act to treat the phrase as a general grant | Court found the instrument "problematic and equivocal" but concluded, as a matter of law, that the POA could reasonably be read as limited; thus no valid arbitration agreement was formed |
Key Cases Cited
- Robinson Nursing & Rehab. Ctr., LLC v. Phillips, 586 S.W.3d 624 (Ark. 2019) (FAA governs arbitration; de novo review of denial to compel arbitration)
- Malvern Operations, LLC v. Moss, 605 S.W.3d 291 (Ark. App. 2020) (POA with limited/ambiguous wording did not create general authority to sign arbitration)
- Courtyard Gardens Health v. Williamson, 509 S.W.3d 685 (Ark. App. 2016) (agent lacked authority to sign arbitration where statutory POA did not grant claims/litigation authority)
