Progressive Eldercare Services-Columbia, Inc., d/b/a The Green House Cottages of Wentworth Place; The Green House Cottages of Wentworth Place, LLC, d/b/a The Green House Cottages of Wentworth Place; T. Marquel (Kelly) Park, Administrator of The Green House Cottages of Wentworth Place; John Doe I; John Doe II; John Doe III; John Doe IV; and John Doe V v. Patricia Griffin, as Special Administrator of the Estate of Dossie Lee Williams, Deceased, and on Behalf of the Wrongful Death Beneficiaries of Dossie Lee Williams, Deceased

Summary

The Arkansas Court of Appeals affirmed the denial of a nursing facility’s motion to compel arbitration in a wrongful-death and negligence action. The court held that the resident’s daughter signed the admission and arbitration agreements as a representative, but there was no evidence that she had authority to bind the resident or act on her behalf. The court also rejected the argument that federal arbitration law preempted Arkansas precedent concerning third-party beneficiaries.

Holdings

1. The arbitration agreement was not enforceable because Progressive failed to establish a valid contract between Progressive and Pamela Green or between Progressive and Dossie Lee Williams.
2. Williams could not be bound as a third-party beneficiary because there was no underlying valid agreement between Progressive and Pamela Green and no demonstrated authority permitting Green to bind Williams.
3. The Federal Arbitration Act did not preempt application of the generally applicable Arkansas contract-law requirement that a person have authority to bind another as a third-party beneficiary.

Questions Presented

1. Whether a valid agreement to arbitrate existed between Progressive and Pamela Green or between Progressive and Dossie Lee Williams.
2. Whether Williams was bound to the arbitration agreement as a third-party beneficiary of a contract between Progressive and Green.
3. Whether the Federal Arbitration Act preempted Arkansas third-party-beneficiary principles requiring authority to bind another person.

Disposition

affirmed