On September 27, 2022, Donna Glover, as personal representative of the estate of Dorothy Frizzell and on behalf of the wrongful death beneficiaries of Frizzell, filed her complaint alleging that Frizzell was injured as a result of the care and treatment received at Greystone Nursing and Rehab. Frizzell resided at Greystone from June 1, 2021 to January 19, 2022. The complaint asserted causes of action for negligence, medical malpractice, breach of the admission agreement, and deceptive trade practices. Greystone answered, denying the claims and asserting the existence of an arbitration agreement as a defense. Greystone moved to compel arbitration, and a hearing was held on the motion on April 21, 2023. The trial court denied Greystone’s motion to enforce arbitration, and Greystone appealed.
When the arbitration agreement was signed, Glover was Frizzell’s attorney-in-fact pursuant to a “General/Durable Power of Attorney” executed on March 1, 2017. The power of attorney specifically provided that Frizzell granted to Glover the power to act on Frizzell’s behalf with respect to legal actions or any other matter deemed “advisable, necessary, or desirable for the management of [Frizzell’s] affairs.” It is undisputed that Greystone was not made aware of the power of attorney until after admission.
The Arkansas Court of Appeals stated in its February 12, 2025 Opinion: “As with other types of contracts, the essential elements for an enforceable arbitration agreement are (1) competent parties, (2) subject matter, (3) legal consideration, (4) mutual agreement, and (5) mutual obligations … Frizzell is not identified anywhere within the four corners of the arbitration agreement. We have held under similar facts that absent any clear evidence that the resident’s responsible party was signing in a representative capacity, we construe the ambiguity most strongly against the drafters of the agreement to conclude that the responsible party is signing in an individual capacity … while Glover had a power of attorney when the agreement was signed, she did not check the box on the agreement reflecting that a copy of her power of attorney had been provided to the nursing home. Instead, she signed on the line designated for the responsible party and listed her relationship to the resident as “daughter.””
“[T]he critical question is not whether the signor possessed authority but whether the signor was exercising it when the signor signed the arbitration agreement. Thus, the change in the definition does not cure the ambiguity. As in the other cases, the box designating evidence of authority was blank, and when instructed to indicate her authority as responsible party, Glover wrote “daughter” instead of “attorney in fact.” Given our caselaw and the requirement to construe the ambiguity most strongly against the drafters of the agreement, we affirm this point. Greystone also argues that Glover had authority to enter into the arbitration agreement on behalf of Frizzell. However, given the finding that Glover signed the agreement in an individual capacity and not on behalf of Frizzell, Greystone’s argument is moot.”
The Arkansas Court of Appeals affirmed the denial of Greystone’s motion to compel arbitration.
Source Greystone Nursing and Rehab, LLC v. Glover, No. CV-23-570.
If you or a loved one suffered injuries (or worse) while a resident of a nursing home in Arkansas or in another U.S. state due to a nursing home fall, nursing home aspiration, nursing home neglect, nursing home negligence, nursing home abuse, nursing home under-staffing, or the nursing home failing to properly care for a vulnerable adult, you should promptly find an Arkansas nursing home claim lawyer, or a nursing home claim lawyer in your state, who may investigate your nursing home claim for you and file a nursing home claim on your behalf or behalf of your loved one, if appropriate.
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