Kindred Nursing Centers East, LLC v. Jones

Summary

The Alabama Supreme Court considers whether a nursing-home resident was bound by an arbitration agreement signed by her daughter during admission. The court analyzes apparent authority and the distinction between arbitration agreements signed on behalf of competent versus mentally incompetent residents. The opinion reverses the denial of the nursing facility’s motion to compel arbitration and remands the case.

Holdings

1. A competent nursing-home resident may be bound by an arbitration agreement executed by a representative, and the evidence established that Jones was mentally competent when admitted to and during her stay at Whitesburg Gardens.
2. Barbour had apparent authority to bind Jones to the arbitration agreement because Jones passively permitted Barbour to act on her behalf during the admission process and did not object to Barbour's execution of the admission documents.
3. Whitesburg Gardens satisfied its burden of proving the existence of a valid arbitration agreement affecting interstate commerce.

Questions Presented

1. Whether Whitesburg Gardens proved the existence of a valid contract requiring arbitration of Jones's claims.
2. Whether Jones was mentally competent when the arbitration agreement was executed and during her stay at the facility.
3. Whether Jones's conduct established that Barbour had apparent authority to sign the arbitration agreement on Jones's behalf.

Disposition

reversed_and_remanded