Quarles v. Courtyard Gardens Health and Rehabilitation LLC
2016 Ark. 112
| Ark. | 2016Background
- Bennie Jean Quarles resided at Courtyard Gardens (nursing facility) and allegedly executed a durable power of attorney in favor of her son Kenny on June 4, 2010. Kenny filed suit in January 2011 under that POA; Bennie Jean died in May 2011 and Kenny was later substituted as special administrator of her estate.
- Courtyard Gardens moved for summary judgment (Jan. 30, 2015) arguing the POA was invalid because Bennie Jean lacked mental capacity and the POA was not properly acknowledged by a notary; it claimed the original complaints were therefore nullities and time-barred.
- Evidence submitted by Courtyard Gardens included medical records diagnosing advanced dementia and deposition testimony indicating Kenny assisted Bennie Jean in signing and that the notary did not acknowledge her signature in the notarized presence.
- The Estate argued Rule 17(a)/(b) entitled the incompetent to proceed by next friend or guardian and that substitution of Kenny as special administrator cured any defects before the statute of limitations expired; it also raised waiver, estoppel, and laches defenses against Courtyard Gardens’ late challenge.
- The circuit court granted summary judgment for Courtyard Gardens without specifying grounds; the Supreme Court of Arkansas treated that as adopting all defendant arguments and affirmed, relying on the POA’s invalidity (including improper acknowledgment) and preservation rules for appellate arguments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of POA (capacity) | Kenny: factual dispute — witnesses explained document and Bennie Jean understood and agreed to sign | Courtyard Gardens: medical records and depositions show incapacity; POA void | Court affirmed POA invalidity but relied also on separate acknowledgment defect; capacity dispute not outcome-determinative on appeal |
| Validity of POA (acknowledgment) | Estate: did not meaningfully contest below | Courtyard Gardens: notary did not properly acknowledge signer in presence; Jones controls | Court treated trial court as adopting this ground and affirmed — POA invalid for improper acknowledgment |
| Effect of Rule 17 (next friend / substitution) | Estate: Rule 17(b) and precedents allow incompetent to sue via next friend; substitution cured defects before SOL | Courtyard Gardens: Rules 15/17 inapplicable if original complaint is a nullity; POA-created complaints were nullities | Court held Estate failed to preserve Rule 17 argument at trial level; affirmed judgment based on nullity of complaints |
| Waiver / Estoppel / Laches (delay in raising standing) | Estate: Courtyard Gardens waived standing defense or is estopped/laches bars late challenge after years of litigation | Courtyard Gardens: raised acknowledgment issue promptly after depositions revealed facts; could not earlier raise without risking arbitration waiver | Court rejected waiver/estoppel/laches as to acknowledgment issue (Court found Courtyard Gardens lacked full knowledge until depositions), but concurrence would have applied laches to capacity claim; result affirmed on independent acknowledgment ground |
Key Cases Cited
- Rhuland v. Fahr, 356 Ark. 382, 155 S.W.3d 2 (2004) (wrongful-death standing/ who may bring suit under wrongful-death statute)
- Jones v. Owen, 2009 Ark. 505, 342 S.W.3d 265 (2009) (proper notarial acknowledgment requires signer to sign in presence of notary or later appear and acknowledge signature)
- Brewer v. Poole, 362 Ark. 1, 207 S.W.3d 458 (2005) (rules 15 and 17 inapplicable where original complaint is a nullity)
- Missouri State Life Ins. Co. v. Holt, 186 Ark. 672, 56 S.W.2d 788 (1932) (court’s duty to allow incompetent to proceed via next friend or appoint guardian ad litem)
- Harral v. Helton, 230 Ark. 913, 327 S.W.2d 549 (1959) (recognizing trial court’s duty to permit incompetent to sue with representative)