Magnolia Healthcare, Inc. v. Barnes
| Docket Number: | 2006-CA-00427-SCT Linked Case(s): 2006-CA-00427-SCT ; 2006-CA-00427-SCT |
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| Supreme Court: |
Opinion Date: 01-10-2008 Opinion Author: Easley, J. Holding: Reversed and Remanded |
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| Additional Case Information: |
Topic: Contract - Arbitration agreement - Health care surrogate - Section 41-41-211 Judge(s) Concurring: Smith, C.J., Waller, P.J., Carlson and Randolph, JJ. Dissenting Author : Graves, J., with separate written opinion. Dissent Joined By : Diaz, P.J. Dissenting Author : Dickinson, J., with separate written opinion. Dissent Joined By : Lamar, J. Nature of the Case: CIVIL - CONTRACT |
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| Trial Court: |
Date of Trial Judgment: 02-07-2006 Appealed from: Washington County Circuit Court Judge: Richard Smith Case Number: CI205-252 |
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| Note: | This opinion was withdrawn and a new opinion substituted therefor on 8/7/2008 by the Supreme Court. | |
| Party Name: | Attorney Name: | |||
| Appellant: | Magnolia Healthcare, Inc. d/b/a Arnold Avenue Nursing Home; Foundation Health Services, Inc. and Diane Oltremari, Administrator |
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| Appellee: | Barbara Jean Barnes, by and through Her Relative and Next Friend, Shirley Grigsby, as Conservator of the Estate of Barbara Jean Barnes |
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| Topic: | Contract - Arbitration agreement - Health care surrogate - Section 41-41-211 |
| Summary of the Facts: | Shirley Grigsby, acting as the next friend and conservator of the Estate of Barnes, filed a complaint against Magnolia Healthcare, Inc., Arnold Avenue Nursing Home, Foundation Health Services, Inc., and Administrator Diane Oltremari, alleging that Barbara Barnes was negligently treated, abused, and sexually assaulted while she was a resident of Arnold Avenue Nursing Home. Magnolia filed a motion to compel arbitration, pursuant to the arbitration provision in the admission agreement signed by Grigsby. The trial court entered an order denying Magnolia’s motion to compel arbitration, and Magnolia appeals. |
| Summary of Opinion Analysis: | Magnolia argues that Grigsby had the authority to bind Barnes to the arbitration agreement as Barnes’ health-care surrogate under the Uniform Health-Care Decisions Act, Sections 41-41-201 to 41-41-229. The facts demonstrate that Barnes is a mentally incompetent person who is incapable of residing alone. The parties do not dispute that Barnes had the mental capacity of a three-year-old and lacked the ability to reside alone. Grigsby, Barnes’ cousin’s wife, was her primary caretaker. When Grigsby became unable to continue to care for Barnes due to the deterioration of her husband’s health, Grigsby admitted Barnes to the Arnold Avenue Nursing Home. If the surrogate satisfies the requirements of section 41-41-211, then the surrogate can bind the patient contractually in matters of health care. It is clear from the undisputed facts that Barnes was incapable of managing her affairs when she was admitted to the nursing home. Therefore, there is no factual question that Barnes lacked the capacity to manage her affairs or make appropriate medical decisions on her own behalf, and the statutory requirement section 41-41-211(1) was satisfied. Grigsby assumed responsibility for caring for Barnes’ special needs when Barnes’ caretaker, her grandmother, became too old to care for her. Grigsby acted as Barnes’ primary caretaker until Grigsby’s husband became ill, consuming too much of Grigsby’s time to allow her to care for Barnes’ special needs. Based on the facts, there is no question that Grigsby qualified as Barnes’ surrogate under section 41-41-211(3). It is clear that Grigsby’s reason to place Barnes in the nursing home was a health-care decision. Since section 41-41-211 provides Grigsby authority as Barnes’ health-care surrogate to bind Barnes to arbitration, the trial court erred in denying Magnolia’s motion to compel arbitration. |
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