130 So. 3d 1194
Ala.2013Background
- Means was admitted to Cedar Crest on Jan. 25, 2012 for rehabilitation while his daughter Pleasant signed the DRA as Legal Representative or Family Member.
- DRA defined the scope of the 'parties' to include the resident, family, legal representatives, and the facility and its personnel.
- Pleasant lacked a power of attorney for Means; she states no authority to sign on his behalf.
- Means was later read as mentally incompetent at admission, with no evidence of competency at relevant times.
- Bolding, as Means’s attorney in fact and next friend, sued SSC Montgomery for medical malpractice on March 6, 2012; arbitration motion filed April 5, 2012; trial court denied.
- Court reviews denial of a motion to compel arbitration de novo and requires movant to show contract to arbitrate and its interstate-commerce nexus.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the DRA bind the non-signatory via Pleasant’s signature | Bolding argues Pleasant’s signature binds Means | SSC Montgomery argues Pleasant acted as authority for Means | No; Pleasant lacked authority to bind Means. |
| Is there apparent authority to bind Means to the DRA | Apparent authority could bind Means and Bolding | No apparent authority given Means’ incompetence | Not bound; incompetence defeats apparent authority. |
| Was Means mentally incompetent at signing the DRA | Means was incompetent at signing | Evidence contested; not enough to bind | Means incompetent; DRA unenforceable against him. |
| Does Bolding’s suit on Means’s behalf get bound by the DRA signed by Pleasant | DRA binds resident’s representatives to arbitration | DRA does not bind an incompetent resident or improper representative | Bolding not bound; DRA ineffective due to Means’s incompetence. |
Key Cases Cited
- Noland Health Servs. v. Wright, 971 So.2d 681 (Ala. 2007) (distinguishes incompetent resident binding rules for authority of representative)
- Johnson v. Tennessee Health Mgmt., Inc., 49 So.3d 175 (Ala. 2010) (recognizes distinction between competent residents and those incompetent when binding by representative)
- Carraway v. Beverly Enters. Alabama, Inc., 978 So.2d 27 (Ala. 2007) (applies apparent authority where competent resident acquiesces to representative)