We affirm the judgment.
FACTS AND PROCEEDINGS
A. Signing the arbitration agreements
Defendants Plum Healthcare Group, LLC, and White Fir Holdings, LLC, own and operate Midtown Oaks Post-Acute (Midtown), a skilled nursing facility. On January 13, 2014, Lila Valentine was admitted to Midtown for "rehab" after she fell and broke her right shoulder. The admission records
On January 15, 2014, Juillet Winter, Midtown's admission coordinator, contacted Darleen about the signing of the admission documents. Winter said Lila was unable to sign the documents "due to her shoulder injury and her episodes of confusion." Darleen told Winter she was not in the area and to have her father, Roy, sign the papers.
On January 19, 2014, Roy signed the admission documents, including two arbitration agreements. Lila was present when Roy signed the papers, and she did not object to him signing the arbitration agreements on her behalf.
Roy recalled signing some documents when Lila was admitted to Midtown. A person from the facility told him he needed to sign some admission forms for his wife. The person did not say what the forms were, that they involved arbitration, or that there was a choice in the signing of the documents. The person never asked Roy if Lila was capable of signing the documents or discussed with him that the documents needed to be signed by Lila if she was capable. Roy asserts that had this issue been raised, he "certainly would have told" the facility employee that Lila was capable of making her own health care decisions.
While Roy signed the papers, it appeared to him that Lila was not aware of, or involved in, the process. The person from the facility never told Lila anything about the paperwork, and she did not ask Lila to sign the documents. The person never asked Lila if it was okay for Roy to sign the admission documents for her. Roy
Roy signed two arbitration agreements; one for arbitrating medical malpractice claims and the second for arbitrating all other claims, including wrongful death and elder abuse. Both agreements state they are binding on the parties and the parties' "heirs, representatives, executors, administrators, successors, and assigns[.]"
In addition, both agreements contain a clause that attempts to bind the resident's representative to arbitrate the resident's claims and the representative's individual claims if the representative signs the agreement instead of the resident. The clause reads: "By the signing [of] this agreement the resident intends to express that I have full authority to act as the resident's agent in making healthcare decisions for the resident. I have full and express authority as the resident's agent to waive the resident's right to a jury trial
Each agreement also authorized the resident and the resident's representative to rescind the agreement within 30 days of execution.
Lila did not sign either agreement.
B. Lila's care
Upon admission to Midtown, Lila was oriented and functional. She was continent of urine and bowel. Prior to her admission, she lived independently at home with Roy.
On March 13, 2014, two months after admission, Lila began exhibiting symptoms of a urinary tract infection. Treatment was not started until four days later, March 17.
A month later, on April 15, 2014, the urinary tract symptoms recurred, and it was noted she had "increased confusion" with her symptoms. Antibiotic treatment was not started for two days until April 17.
On May 2, 2014, Lila again complained of urinary tract infection symptoms. Urinalysis test results received two days later showed "mixed flora" bacteria. However, Midtown staff did not treat the infection and did not monitor Lila.
One week later, on May 9, 2014, Lila had loose stool and complained of a stomach ache. The treating nurse took no steps to determine what was causing Lila's symptoms. Instead, she wrote in Lila's chart that the loose stool "didn't smell like a c. diff," knowing a urinary tract infection with "c. diff" could not be diagnosed merely by smelling stool. Although Lila's symptoms were a "patent sign" of sepsis, staff gave her a narcotic painkiller and Imodium for diarrhea without attempting to determine whether Lila had an infection. For the rest of the weekend, the nursing staff did not monitor Lila's symptoms even though her condition changed.
On May 11, 2014, Lila had a fever of 100.5 degrees at 2:20 p.m., which subsided to 100 degrees by 7:00 p.m. The staff ordered laboratory tests. The
No further entry was made in Lila's medical chart until approximately 10 hours
Lila arrived by ambulance at Sutter General Hospital at 12:50 p.m. She was in septic shock, but Sutter staff failed to examine her timely or treat her for sepsis. They did not administer antibiotics for several hours. Despite Lila's abnormal blood pressure and heart rate, Sutter nurses did not notify any physician of Lila's deteriorating condition, monitor Lila, or care for her over a six-and-a-half-hour period. Lila went into cardiac arrest three times before she was pronounced dead at 3:30 a.m., May 13, 2014.
C. This action
Roy, as Lila's successor in interest and in his individual capacity, Darleen, and two additional children, Eileen Tworoger and Randy Valentine, filed this action. As successor in interest, Roy asserted causes of action against defendants for elder abuse ( Welf. & Inst. Code, § 15600 et seq. ) and violation of the Patients' Bill of Rights ( Health & Saf. Code, § 1430, subd. (b) ; see Cal. Code Regs., tit. 22, § 72527 ). Roy in his individual capacity and Darleen, Eileen, and Randy asserted causes of action for wrongful death caused by reckless neglect and abuse. Darleen also alleged a cause of action for negligent infliction of emotional distress.
Defendants petitioned the trial court to compel arbitration. The court found the arbitration agreements were valid as to Roy, but it ultimately denied the petition. The agreements were valid as to Roy not because he was Lila's agent, but because when he signed them, he expressly agreed that any claims he had as a successor in interest and as an individual would be subject to binding arbitration. The court found Roy "did not sign those agreements as Lila's representative or agent in an attempt to bind Lila." Even if he had, that fact according to the court would be immaterial since Lila through her estate was not asserting any claims on her own behalf. Roy agreed to arbitrate "his own claims as a successor in interest."
Even though the court determined that Roy's successor and individual claims were subject to arbitration, it denied the petition to compel. It foresaw the possibility of conflicting rulings on common issues of law or fact if the children's wrongful death claims were litigated and Roy's wrongful death and elder abuse claims were arbitrated. Pursuant to discretion granted it in such a circumstance by Code of Civil Procedure section 1281.2 ( section 1281.2 ), the
DISCUSSION
Under section 1281.2, subdivision (c), "a court may stay or refuse to compel arbitration of all or part of an arbitrable controversy when: (1) '[a] party to the arbitration agreement is also a party to a pending court action ... with a third party, arising out of the same transaction or series of related transactions,' and (2) 'there is a possibility of conflicting rulings on a common issue of law or fact.' ( § 1281.2(c).) For purposes of the statute, a third party is one who is neither bound by nor entitled to enforce the arbitration agreement. ( Thomas v. Westlake (2012)
Defendants contend the trial court had no discretion to deny their petition to compel because except for the Patients' Bill of Rights claim and Darleen's claim for emotional distress, all of the plaintiffs' claims are subject to arbitration. First, they argue the survivor claim for elder abuse and Roy's individual claim for wrongful death are subject to arbitration because Roy signed the arbitration agreements as Lila's agent as well as for himself.
Defendants assert that because each plaintiff's elder abuse and wrongful death claims are subject to arbitration, the court had no discretion under section 1281.2 or otherwise to deny arbitration. They ask us to reverse the court's ruling and direct the court either to order all claims against them to arbitration or allow arbitration of the elder abuse and wrongful death claims to proceed first.
We conclude the trial court did not abuse its discretion. Defendants did not establish that Roy signed the arbitration agreements as Lila's agent. As a result, he could not bind the children to arbitrate their wrongful death claims. Because the children would litigate their claims, the court was within its discretion to deny arbitration under section 1281.2 to prevent conflicting rulings on common issues of law and fact.
"The party seeking to compel arbitration bears the burden of proving the existence of a valid arbitration agreement. ( Garrison v. Superior Court (2005)
"As the Flores court explained, 'Generally, a person who is not a party to an arbitration agreement is not bound by it. ( Buckner v. Tamarin, supra ,
Defendants mistakenly believe the trial court found on disputed facts that Roy bound Lila to the arbitration agreements as her agent. The trial court expressly found Roy was not acting as Lila's authorized agent when he signed the arbitration agreements. It stated Roy "did not sign those agreements as Lila's representative or agent in an attempt to bind Lila." Substantial evidence supports the trial court's finding.
"The existence of an agency relationship is a factual question for the trier of fact whose determination must be affirmed on appeal if supported by substantial evidence. ( Violette v. Shoup (1993)
"An agent is one who represents another, called the principal, in dealings with third persons." ( Civ. Code, § 2295.) In California, agency is "either actual or ostensible." ( Civ. Code, § 2298.) An agency is actual "when the agent is really employed by the principal." ( Civ. Code, § 2299.) Actual authority "is such as a principal intentionally confers upon the agent, or intentionally, or by want of ordinary care, allows the agent to believe himself to possess." ( Civ. Code, § 2316.)
An agency is ostensible "when the principal intentionally, or by want of ordinary care, causes a third person to believe another
There is no evidence Lila intentionally designated Roy as her agent with authority to enter arbitration agreements on her behalf. Thus, if an agency
Defendants contend the evidence shows Roy believed he was Lila's actual agent because he and Lila were married, and he signed the agreements on the line marked "Resident's Representative" beneath the provision stating his signature indicated he had Lila's authority as her agent to enter into arbitration agreements for her.
We are not persuaded. Although Roy signed the agreements apparently believing he could do so, "the fact of belief is not enough. It must be shown that the belief was engendered by conduct of the principal. To hold otherwise would give any agent, not the authority, but the naked power to bind his principal to any contract within the general scope of his duties, however fantastic or detrimental to the principal's interest such contract may be." ( South Sacramento Drayage Co. v. Campbell Soup Co. (1963)
"Before recovery can be had against the principal for the acts of an ostensible agent, three requirements must be met: The person dealing with an agent must do so with a reasonable belief in the agent's authority, such belief must be generated by some act or neglect by the principal sought to be charged and the person relying on the agent's apparent authority must not be negligent in holding that belief. ( Associated Creditors' Agency v. Davis (1975)
Nothing Lila did could reasonably cause defendants to believe Roy was authorized to execute arbitration agreements for her. Juillet Winter,
Roy testified Lila was capable to make her own health care decisions. She was present when he signed the documents, but she was unaware he was signing them or of what they were. Winter never told Lila about the paperwork, asked her if she could sign them, or asked her if Roy had authority to sign them as her agent.
Instead, Winter relied on Darleen's direction to have Roy sign the forms. There is no evidence in the record, however, that establishes Darleen had the authority either to execute arbitration agreements as Lila's agent or, if she had that authority, to delegate it to Roy.
According to Winter, Darleen was Lila's "responsible party." Nothing in the record defines that term. In the health care context, the term does not establish agency to execute arbitration agreements. "Facially, the status of agent, legal representative, or responsible party would not arise merely because of kinship. Using the ordinary meaning of these terms (see Pang v. Beverly Hospital, Inc. (2000)
Defendants nonetheless argue the evidence establishes Roy was Lila's ostensible agent. They contend that although Lila could not sign the agreements due to her shoulder injury, she maintained the mental capacity to consent (despite Winter's testimony), was present when Roy signed the agreements, had a sufficient opportunity to object, but instead remained silent. Defendants claim Lila's silence is "compelling" evidence.
Contrary to defendants' argument, Lila's silence in this instance was insufficient to convey ostensible authority to Roy to execute arbitration
However, in those instances, it was reasonable for the third party to rely on the purported agent despite his silence due to a historical relationship or course of conduct. (See Leavens v. Pinkham & McKevitt (1912)
Here, there is no past behavior by Lila or a prior relationship or course of conduct with her on which defendants could rely to establish Roy was her agent with authority to bind her to arbitration. And agency cannot be implied from the marriage relationship alone. ( Flores, supra ,
Defendants contend Lila on at least one prior occasion requested to them that Roy sign a document on her behalf. To support this contention, defendants submitted with their reply brief at trial a document entitled Physicians Orders for Life-Sustaining Treatment (POLST), dated December 2013. Someone wrote on the document, "resident has capacity but cannot sign - requested husband to sign." The document was submitted under a declaration signed by defendant's attorney, who attested only that the document was a true and correct copy. Defendants claim this evidence supports a finding that Roy was Lila's agent.
Plaintiffs objected to the document, but the trial court did not rule on the objection. In that circumstance, we presume the evidence was admitted and considered by the court, but the objection is preserved for our review on appeal. (See Reid v. Google, Inc. (2010)
Defendants contend Roy and Lila's apparent decision not to rescind the arbitration agreements when they had 30 days to do so indicates Roy had the authority to sign them for Lila. In effect, defendants claim Lila ratified the arbitration agreements by not rescinding them. Not so. "The fundamental test of ratification by conduct is whether the releasor, with full knowledge of the material facts entitling him to rescind , has engaged in some unequivocal conduct giving rise to a reasonable inference that he intended the conduct to amount to a ratification." ( Union Pacific Railroad Co. v. Zimmer (1948)
The evidence establishes that Lila made no actions to establish Roy as her ostensible agent or to lead Winter to reasonably believe Roy was her agent. Roy signed the agreements based on Darleen's request to defendants, not on Lila's request or authorization. Defendants could not rely on Lila's silence in this instance as they had
As Roy did not bind Lila to arbitration as her agent, he also did not bind the children's claims for wrongful death to arbitration. Because the children's claims were to be litigated, and because the children were third parties whose claims against defendants arose from the same set of facts as Lila's and Roy's, the trial court had discretion under section 1281.2 to deny defendant's petition to compel arbitration in order to prevent conflicting rulings on common issues of law or fact. The court did not abuse its discretion in denying the petition.
The order denying the petition to compel arbitration is affirmed. Costs on appeal are awarded to plaintiffs. ( Cal. Rules of Court, rule 8.278(a).)
We concur:
RAYE, P. J.
HOCH, J.
Notes
This discussion is based on the allegations contained in plaintiffs' complaint.
The plaintiffs' similar causes of action against the owners and operators of Sutter General Hospital are not before us.
The court accepted defendants' assertion that they had settled the claim for violation of the Patients' Bill of Rights. It also found Darleen's claim for negligent infliction of emotional distress was not subject to arbitration because Darleen was not a party to the arbitration agreement. Defendants do not challenge these rulings.
In his opening brief and at oral argument, Roy contended the trial court erred by determining his claims were subject to arbitration. Roy, however, did not file a cross-appeal. "As a general matter, ' "a respondent who has not appealed from the judgment may not urge error on appeal." ' (Estate of Powell (2000)