228 A.3d 280
Pa. Super. Ct.2020Background
- Decedent (Clayton L. Traver) had three separate stays at the ManorCare facility between 2013 and 2015; at each admission documents including an Admission Agreement and a separate Voluntary Arbitration Agreement were signed by Irene Traver (his wife).
- Decedent died in March 2015; Irene Traver (as administratrix) filed suit in 2016 alleging negligence, custodial neglect, survival and wrongful death (including punitive damages).
- ManorCare filed preliminary objections seeking to enforce the Arbitration Agreement, arguing Traver had authority to sign on Decedent’s behalf (express authority, apparent authority, and authority by estoppel).
- Traver argued she lacked legal authority: there was no power of attorney or formal appointment, she did not recall reading or understanding the arbitration document, and there was no evidence Decedent authorized or ratified the arbitration agreement.
- The trial court denied ManorCare’s motion to compel arbitration; the Superior Court affirmed, holding ManorCare failed to establish an agency relationship or other legal basis to bind Decedent to arbitration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Express authority to bind Decedent to arbitration | Traver had no power of attorney and never received Decedent’s express delegation for arbitration | Couple had an understanding to act for one another; Traver routinely handled affairs and Decedent later signed admission paperwork | No — court found no evidence Decedent expressly authorized Traver to sign the arbitration agreement |
| Apparent authority / authority by estoppel | Decedent did not manifest to ManorCare that Traver could sign; no ratification or knowledge of arbitration | ManorCare relied on Traver’s representations at admission, Decedent’s lack of objection, and routine admissions practice | No — court found no manifestation by the principal and no ratification; apparent authority and estoppel not established |
Key Cases Cited
- Bair v. Manor Care of Elizabethtown, PA, LLC, 108 A.3d 94 (Pa. Super. 2015) (interlocutory appeal and standard for reviewing denial of petition to compel arbitration)
- Wisler v. Manor Care of Lancaster, LLC, 124 A.3d 317 (Pa. Super. 2015) (agency and arbitration: non-signatory may be compelled under agency principles; burden on party asserting agency)
- Washburn v. N. Health Facilities, Inc., 121 A.3d 1008 (Pa. Super. 2015) (familial relationship alone does not create agency; apparent authority requires principal’s manifestation)
- Walton v. Johnson, 66 A.3d 782 (Pa. Super. 2013) (agency creation requires principal’s manifestation; mere performance of acts for another is insufficient)