CL SNF, LLC et al. v. Fountain

Summary

The Georgia Court of Appeals affirmed the denial of a nursing facility’s motion to compel arbitration in a negligence action brought on behalf of an incapacitated adult. The court held that the ward’s guardian lacked authority under Georgia’s Guardianship Code to sign a voluntary pre-dispute arbitration agreement that was not required for admission or services. Because the arbitration agreement was unenforceable against the ward, the court did not address the parties’ remaining challenges to its validity.

Holdings

1. A guardian's powers to establish the ward's dwelling and provide consents or approvals necessary for medical or other professional care, treatment, or services do not authorize the guardian to sign a voluntary predispute arbitration agreement that is not required for admission or the furnishing of services.
2. A guardian's authority to bring, defend, or participate in legal, equitable, or administrative proceedings, including alternative dispute resolution, does not extend to signing a voluntary predispute arbitration agreement before any claim or proceeding exists.
3. The guardian's power to exercise other powers reasonably necessary to provide for the ward's support, care, education, health, and welfare does not authorize execution of an optional predispute arbitration agreement absent evidence that signing was reasonably necessary for those purposes.
4. The arbitration agreement was not enforceable against Wiggins because Clinch failed to establish that Fountain had authority to sign it on his behalf.

Questions Presented

1. Whether the guardian of an incapacitated adult had authority under Georgia's Guardianship Code to bind the ward to a voluntary predispute arbitration agreement that was not required for admission or receipt of services.
2. Whether the trial court properly denied the motion to compel arbitration.

Disposition

affirmed