North Carolina Lawyers Weekly
Scales v. SSC Winston-Salem Operating Co. (Lawyers Weekly No. 003-019-17, 17 pp.) (L. Patrick Auld, USMJ) 1:17-cv-00539; M.D.N.C.
Holding: Standing alone, a wife’s signature on an arbitration agreement – which was presented to her along with her husband’s other admission papers when he was admitted to defendant’s nursing home – is insufficient to show that the husband’s estate must arbitrate its wrongful death claim against defendant. Discovery is required to assess both the wife’s authority and defendant’s reliance.
Defendant’s motion to compel arbitration is denied without prejudice pending discovery.
The marital relationship does not itself render one spouse the agent of the other.
The arbitration agreement at issue appears as a standalone contract (rather than an arbitration provision within, for example, an admissions contract) and specifies that its acceptance does not affect one’s admission to the nursing home. Accordingly, the decedent’s admission to and treatment by the nursing home alone likely could not establish either ratification or estoppel as a matter of law. Moreover, nothing in the paperwork indicates that the decedent reviewed or otherwise possessed knowledge of these materials, including the arbitration agreement.
In addition, the wife executed at least some of the paperwork by signing (1) “For the Responsible Party” rather than “For the Resident” and (2) on the line for “Responsible Party Signature (e.g., Family member)” rather than the lines for “Legal Representative Signature (e.g., Guardian)” or “Agent Signature (e.g., Agent through health care Power-of-Attorney or Surrogate Decision-maker).” Under the circumstances, further factual development remains necessary to assess both the wife’s authority and defendant’s reliance.
Discovery regarding the formation of the agreement should proceed.
