SER AMFM, LLC v. Hon. Charles E. King, etc.
740 S.E.2d 66
W. Va.2013Background
- Ms. Wyatt, incapacitated due to Alzheimer's, was admitted to McDowell Nursing on Sept. 10, 2009; her physician appointed Ms. Belcher as health care surrogate.
- Belcher signed a Resident and Facility Arbitration Agreement during admission, which required binding arbitration for disputes related to care and waivers the right to a jury trial.
- The arbitration agreement was optional and not a condition of receiving nursing home services, with a 30-day rescission window after signing.
- Ms. Baker, as personal representative of Wyatt’s estate, filed a wrongful death suit against McDowell Nursing on Dec. 1, 2011.
- McDowell Nursing moved to dismiss and to compel arbitration; the circuit court denied enforcement, finding Belcher lacked authority to waive Wyatt’s rights.
- The West Virginia Supreme Court of Appeals denied the writ of prohibition, holding that a health care surrogate may not bind to arbitration where it is not a health care decision.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is arbitration a health care decision | McDowell contends arbitration is within surrogate power | Baker contends arbitration isn’t a health care decision | Arbitration is not a health care decision |
| Authority of the health care surrogate to sign arbitration | Belcher had authority to bind Wyatt | Belcher’s authority is limited to health care decisions | Belcher lacked authority to bind Wyatt to arbitration |
| Validity of applying surrogate authority to arbitration | Arbitration clause valid as contractual agreement | Arbitration clause not within surrogate scope | Arbitration agreement invalid as surrogate decision not health care decision |
| Alternative theories (apparent agency) | McDowell could rely on apparent/ostensible authority | Authority to bind was not reasonably apparent | No enforceable apparent authority found |
Key Cases Cited
- State ex rel. Hoover v. Berger, 199 W. Va. 12, 483 S.E.2d 12 (1996) (five-factor test for writs of prohibition; weight on clear error)
- Brown v. Genesis Healthcare Corp., 228 W. Va. 646, 724 S.E.2d 250 (2011) (FAA §2 contracts treated like other contracts; enforce terms)
- TD Ameritrade, Inc. v. Kaufman, 225 W. Va. 250, 692 S.E.2d 293 (2010) (arbitration threshold issues limited to validity and scope)