Davis v. GGNSC Admin. Servs. LLC
Davis v. GGNSC Admin. Servs. LLC
Opinion of the Court
Before the Court is Defendant's Motion to Dismiss and Compel Arbitration. (Doc. 3). For the reasons discussed below, the motion is denied.
I. FACTUAL BACKGROUND
On January 5, 2011, Janie Mae Washington was admitted to Golden Living Center in Tifton, Georgia. Golden Living Center is a long-term care skilled nursing facility. Prior to Washington's admittance, her daughter, Plaintiff Ange Davis, met with a staff member of Golden Living Center ("the Facility") on January 4, 2011. On that day, Davis signed an admissions package entitled "Admission and Alternative Dispute Resolution Agreements" that contained two separate agreements. (Doc. 9-1, p. 2). One agreement was a contract for the general terms of admission. The other was an arbitration agreement naming her mother and the nursing home as parties. Ange Davis signed the agreement on the line designated for the signature of the Resident's Legal Representative. Immediately below Davis's signature is an acknowledgment that states: "By my signature, I represent that I am a person duly authorized by Resident or by law to execute this Agreement and that I accept its terms." (Doc. 3-4, p. 6). The agreement required the signatory to "Specify Capacity of Legal Representative (e.g. Power of Attorney, Agent, Next of Kin)," but Davis left that line blank. Washington was not present when her daughter signed the arbitration agreement or other admissions paperwork, nor was it discussed with her by either her daughter or a representative of the Facility.
On or about February 24, 2011, Ms. Washington executed a general power of attorney appointing Ms. Davis as her attorney-in-fact. Ms. Washington continued to reside at the Facility until December 2015. On January 15, 2016, Ms. Washington passed away.
Davis filed this action in Tift County on April 26, 2017, alleging that the negligence and professional negligence of Defendants "in failing to prevent the injuries that Janie Mae Washington sustained while a resident at the Facility" resulted in her death. (Doc. 9-1, p. 3-4). Defendants removed the complaint to this Court and on June 9, 2017, filed a Motion to Dismiss and Compel Arbitration. (Doc. 3).
II. ANALYSIS
A. Enforceability of the Agreement
Defendants allege that the arbitration agreement must be enforced because by signing the document Davis created an enforceable arbitration agreement between her mother and the Facility.
*1335i. Applicability of the FAA
Defendants argue that the federal law governing the arbitration agreement mandates the parties submit to arbitration. Specifically, Defendants contend that because the arbitration agreement is part of a contract involving interstate commerce, it must be governed by the Federal Arbitration Act ("FAA").
The FAA provides that agreements to arbitrate in contracts involving commerce are "valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract."
Defendants are correct in their assertions that the FAA governs the arbitration agreement and that federal law favors the enforceability of arbitration. However, courts only apply the presumption of arbitration "to the interpretation of contracts if we have already determined that, under [s]tate law, the parties formed a valid agreement to arbitrate." Bickerstaff v. SunTrust Bank,
The Supreme Court has made clear that this inquiry is a matter of state contract law. First Options of Chicago, Inc. v. Kaplan,
Defendants, "as the parties seeking arbitration, bear the burden of proving the existence of a valid and enforceable agreement to arbitrate."
ii. Agency
Washington never signed the arbitration agreement, and her daughter's signature on that agreement can only bind Washington and her estate if Davis is deemed to have been an agent of her mother for this purpose. Here, Davis argues that "[b]ecause [she] had no authority to execute the Arbitration Agreement on Janie Mae Washington's behalf, the Plaintiffs have not waived their rights to have the claims set forth in the Complaint for Damages heard by a jury before this Court." (Doc. 9-1, p. 4). In support of this argument, Davis states that at the time she signed the admissions paperwork, she had no legal authority to sign on behalf of her mother for admission into the Facility or otherwise. Further, Davis states that Defendants do not contend that either express or apparent authority existed, and their reliance on her status as Washington's daughter is insufficient evidence of any contractual relationship. Thus, Davis ultimately argues that Defendants have not met their burden in proving "all the essential elements of the contract, including the assent to the contractual terms." See TranSouth Fin. Corp. v. Rooks,
Defendants contend, in addition to their argument that the FAA mandates arbitration, that Georgia case law supports a decision in favor of arbitration. Defendants rely on Triad Health Management of Georgia, III, LLC v. Johnson, where, as in this case, a child signed an arbitration agreement on behalf of a parent upon admission to a nursing facility.
Washington did not execute a power of attorney until after the signing of the admission documents. Defendants argue that *1337"Ange Davis' Agreement is valid, enforceable and binding since she signed it." (Doc. 3-1, p. 13). Davis' signature alone, however, is not enough to support the contention that she had the authority to create a valid and binding agreement between her mother and the Facility. See McKean,
1. Express Authority
Under Georgia law, "[t]he relation[ship] of principal and agent arises wherever one person, expressly or by implication, authorizes another to act for him or subsequently ratifies the acts of another in his behalf." O.C.G.A. § 10-6-1. Here, there is no evidence that Washington gave Davis express authority to enter into the arbitration agreement on her behalf either before her admission to the Facility or at the time the admission documents were signed on January 4, 2011. To the contrary, Davis has filed an affidavit stating that Washington was not present at the time she signed the agreement, nor did she inform her mother of the nature of the agreement after it was signed. (Doc. 9-2, pp. 3-4). Thus, no express agency existed.
2. Apparent Authority
In addition to lack of evidence of express authority, there is also no evidence to suggest the existence of implied, or apparent, authority. "[A]pparent authority to do an act is created as to a third person by written or spoken words or any other conduct of the principal which, reasonably interpreted, causes the third person to believe that the principal consents to have the act done on his behalf by the person purporting to act for him." McKean,
Here, Defendants have not presented any evidence of words or conduct of Washington that could have caused the Facility to believe that she consented to having the arbitration agreement signed on her behalf by Davis. "An agency finding cannot be based upon the assumption that an agency relationship exists or upon an inference drawn from the alleged agent's actions." Ashburn Health Care Center, Inc. v. Poole,
3. Ratification
Finally, in their Reply, Defendants assert that the arbitration agreement is valid as Washington ratified her daughter's actions by executing a general power of attorney seven weeks after admission to the Facility, and by accepting the benefits of the Facility Admission agreement of which the arbitration agreement was a part. As an initial matter, a reply brief is not the appropriate time to present new arguments. See Herring v. Sec'y, Dept. of Corr.,
In the analogous case of McKean, the appellees raised similar arguments to those of Defendants in the instant case. In McKean, the appellees contend that Patricia, McKean's mother, later ratified her son's actions when she executed a general *1338power of attorney nineteen days after signing an arbitration agreement on her behalf.
B. Necessity of Arbitrator Involvement
Defendants also make the argument in their Reply brief that an arbitrator must be involved to make a determination as to any disputes concerning the scope and applicability of the arbitration agreement. In support of their argument, Defendants rely on Terminix Int'l Co., LP v. Palmer Ranch Ltd. P'ship,
Here, as in Stringfield , Defendants' reliance on Terminix is improper as Davis did not have authority to bind Washington to the terms of the agreement. Thus, Washington is not bound by any of the terms, and it is unnecessary to have an arbitrator determine the validity of the agreement.
C. Request for Discovery
Finally, Defendants state in their Reply brief that "at this time , there is a lack of information regarding the existence of express or apparent agency, as the parties have not conducted any discovery regarding the signing of the ADR Agreement." (Doc. 10, p. 6). As a result, Defendants request that the Court allow "limited discovery related to the signing of the ADR Agreement." (Id. ). The Court denies Defendants' request.
III. CONCLUSION
For the reasons addressed above, Defendants' Motion to Dismiss and Compel Arbitration (Doc. 3) is denied. The stay in *1339this case is hereby lifted. The Court will issue a new Rules 16 and 26 Order.
SO ORDERED , this 22nd day of November, 2017.
Defendants explain at length that the arbitration agreement involves interstate commerce. (Doc. 3-1, pp. 9-12). However, it is not in dispute that the agreement involves interstate commerce. See Doc. 3-4, p. 2 ("The parties to this Agreement acknowledge and agree that upon execution by Resident, this Agreement becomes part of the Admissions Agreement, and that the Admission Agreement evidences a transaction in interstate commerce governed by the Federal Arbitration Act.").
Defendants incorrectly assert that "Plaintiff has the burden of establishing that her claims are not subject to arbitration." (Doc. 3, p. 7). However, as the Eleventh Circuit recently explained in Bazemore v. Jefferson Capital Sys., LLC,
Reference
- Full Case Name
- Ange DAVIS, individually and as Administrator of The Estate of Janie Mae Washington v. GGNSC ADMINISTRATIVE SERVICES LLC d/b/a Golden Living Center Tifton
- Status
- Published