2021 Ark. App. 379
Ark. Ct. App.2021Background
- On Feb 23, 2018, Nancy Taylor signed nursing-home admission documents and an attached arbitration agreement on behalf of her mother, Virginia Rankin, as part of admission to Brookridge Cove; Taylor checked "adult children" and did not indicate a power of attorney.
- The arbitration agreement was a condition of admission and included a 10‑day rescission right.
- On Feb 27, 2018, four days later, Rankin executed a durable health‑care power of attorney appointing Taylor as her attorney‑in‑fact.
- Rankin resided at the facility until her death in Sept. 2018; Taylor was later appointed special administrator and sued for wrongful death in July 2019.
- Progressive moved to compel arbitration, arguing Taylor had authority (or Rankin later ratified Taylor’s signing); the circuit court denied the motion, finding Taylor lacked authority when she signed and that ratification was not proven.
- The Court of Appeals affirmed, holding no agency existed at signing and Progressive failed to prove Rankin’s knowledge necessary for ratification.
Issues
| Issue | Plaintiff's Argument (Taylor) | Defendant's Argument (Progressive) | Held |
|---|---|---|---|
| Whether Taylor’s signature bound Rankin to arbitration | Taylor lacked authority on Feb 23 and did not bind Rankin | Taylor signed admission and arbitration on behalf of Rankin; agreement should bind Rankin | Held: No—Taylor had no authority on Feb 23, so Rankin was not bound |
| Whether Rankin impliedly ratified Taylor’s signing after admission or by later conduct | No agency existed at signing; ratification inapplicable; no proof Rankin knew of the signing | Rankin accepted benefits (care), later executed POA, and did not rescind—so ratification should be implied | Held: No—ratification requires an agency at signing and principal’s knowledge; Progressive presented no evidence Rankin knew of Taylor’s signing |
Key Cases Cited
- Courtyard Gardens Health & Rehab., LLC v. Quarles, 428 S.W.3d 437 (Ark. 2013) (one who lacks authority when signing cannot bind principal to arbitration)
- Hickory Heights Health & Rehab, LLC v. Taylor, 596 S.W.3d 536 (Ark. Ct. App. 2020) (adult child lacked authority to bind mother to arbitration in nursing‑home admission)
- Brady v. Bryant, 894 S.W.2d 144 (Ark. 1995) (ratification is express or implied adoption by the principal of unauthorized acts)
- Arnold v. All Am. Assur. Co., 499 S.W.2d 861 (Ark. 1973) (implied ratification may be inferred from principal’s acts and words but requires knowledge)
- Runyan v. Comm. Fund of Little Rock & North Little Rock, 31 S.W.2d 743 (Ark. 1930) (a contract by a non‑agent cannot be ratified)
- Sterne, Agee & Leach v. Way, 270 S.W.3d 369 (Ark. Ct. App. 2007) (ratification permits principal to adopt unauthorized contract by agent)
