Templeman v. Kindred Healthcare, Inc.
2013 Ohio 3738
Ohio Ct. App.2013Background
- Decedent Willow Templeman was admitted to a Kindred-operated skilled nursing facility in October 2011 and died November 10, 2011; the estate sued Kindred for negligence, wrongful death, survival claims, statutory violations, and punitive damages.
- Donald Templeman, acting as purported legal representative, signed an admission packet that included an Alternative Dispute Resolution (ADR) agreement; his printed name/authority line on the ADR form was left blank.
- Kindred submitted a copy of a purported durable power of attorney (dated 1999) to show Templeman had authority, but the power-of-attorney document lacked the decedent’s signature on the attestation page.
- Kindred moved to stay and compel arbitration under R.C. 2711.02(C) relying on the ADR agreement; the estate opposed, arguing unconscionability and that wrongful-death beneficiaries cannot be compelled to arbitrate under Peters.
- The trial court denied the stay, concluding the ADR agreement bound only the decedent’s personal (survival) claims and could not bind wrongful-death beneficiaries; Kindred appealed.
- The appellate court reviewed de novo whether a valid arbitration agreement existed and whether the trial court properly applied arbitration law to the estate’s claims.
Issues
| Issue | Plaintiff's Argument (Templeman) | Defendant's Argument (Kindred) | Held |
|---|---|---|---|
| Whether a valid, enforceable ADR agreement was formed binding the estate | The ADR form was not knowingly executed; Templeman lacked notice, the power of attorney was invalid, and the agreement was procedurally and substantively unconscionable | The signed ADR form and the power of attorney show Templeman had authority and the agreement is presumptively valid and enforceable | No. Court held no valid arbitration contract bound the estate: power of attorney was defective and Kindred’s admission process did not establish apparent authority or ratification |
| Whether the entire action should be stayed and survivorship claims arbitrated, leaving wrongful-death claims in court | Even if some claims arbitrate, wrongful-death beneficiaries cannot be compelled to arbitrate under Peters; survivorship claims belong to the decedent’s estate | Survivorship claims fall within the ADR scope and should be stayed and sent to arbitration, potentially separating claims | Court concluded no arbitration agreement existed at all; therefore no claims (including survivorship) are subject to arbitration and the trial court erred only insofar as it separated survivorship claims — appellate judgment affirms denial of stay but reverses bifurcation and remands |
Key Cases Cited
- Peters v. Columbus Steel Castings Co., 873 N.E.2d 1258 (Ohio 2007) (wrongful-death beneficiaries cannot be bound by decedent’s pre-death arbitration agreement)
- Master Consolidated Corp. v. BancOhio Natl. Bank, 575 N.E.2d 817 (Ohio 1991) (elements for apparent authority under agency law)
- Shumaker v. Saks Inc., 837 N.E.2d 393 (Ohio App.) (questions of whether parties agreed to arbitrate and unconscionability reviewed de novo)
- Taylor Bldg. Corp. of Am. v. Benfield, 884 N.E.2d 12 (Ohio 2008) (standards for arbitration enforcement and related procedural review)
- Ishmail, 377 N.E.2d 500 (Ohio 1978) (appellate court cannot consider evidence not presented to the trial court)