In this appeal, the owners and operators of a skilled nursing facility appeal from an order denying their motion to compel arbitration with their former patient, plaintiff and respondent Marylin Young. Appellants assert error in the trial court's determination that plaintiff's daughter, Bobbi Young,
On September 16, 2010, plaintiff, who was then 88 years old, suffered a stroke. After a week's hospitalization, she was transferred to Monterey Pines Skilled Nursing Facility (Monterey Pines), where she remained for 10 days until her discharge on October 4, 2010. Plaintiff's complaint describes the following events: On September 29, 2010, about halfway through her stay at the facility, plaintiff told her daughter, Bobbi, that she needed to leave immediately. Though the stroke had impaired her ability to communicate, plaintiff managed to explain that "she had woken up in bed the previous night with her catheter removed and laying [sic] out next to her on her bed, causing the entire bed and her body to be wet. She heard male voices next to her bed and seeing [sic] the curtains around her bed moving. She also heard someone `fiddling' with the nurse call button next to her bed." Plaintiff later told the police that when she woke up her gown was off, and an unknown male assistant was looking at her naked in bed. The assistant said to her, "`This is why I love my job.'"
Bobbi discovered that the call button had been unplugged, making plaintiff's attempts to call a nurse fruitless. About the same time, plaintiff developed "unexplained deep bruising on her inner thigh and pelvis region and began complaining of severe pain to her pelvis and upper thighs for the first time."
Bobbi arranged for plaintiff's removal from the facility, and the family brought her home. Plaintiff continued to have difficulty speaking and was not independently mobile, but "[o]nce [she] was able to be moved more frequently and more easily and to speak clearer [sic], she started complaining of extreme pain in her lower region, particularly her vaginal area, buttocks area, and her inner thighs." It turned out that plaintiff had contracted genital herpes. Robert, her husband of nearly 70 years, had been her only sexual partner, and he tested negative for the virus.
Plaintiff brought this action on February 15, 2012, naming Monterey Pines; its owners, Horizon West, Inc., and Horizon West Headquarters, Inc. (collectively, Horizon West); and a group of entities (the Plum defendants) that had bought Monterey Pines in June 2011 and renamed the facility "Cypress Ridge
All of the first three causes of action were founded on the allegation that the staff at Monterey Pines had failed to provide a safe environment and protect plaintiff from sexual assault. She asserted that male residents were allowed to enter female residents' rooms, and call lights were either nonfunctioning or purposely disconnected by the staff. Plaintiff further described a long-standing pattern of "reckless neglect" of the facility's residents that had resulted in "numerous citations and deficiencies relating to the physical abuse of residents and other incidents of substandard care." Plaintiff also pointed to the failure of either Horizon West or the Plum defendants to investigate plaintiff's allegation of rape, which meant that other residents were at risk of being sexually assaulted and infected with an incurable sexually transmitted disease.
On April 9, 2012, plaintiff, by then 90 years old, moved for trial-setting preference under Code of Civil Procedure section 36, subdivision (a).
Horizon West and Monterey Pines, joined by the Plum defendants, then moved to stay the action and compel arbitration, citing Code of Civil Procedure sections 1281.2, 1281.4, and 1295. The motion was based on an agreement Bobbi had signed when plaintiff was admitted to Monterey Pines. Plaintiff opposed the motion, primarily on the grounds that (1) Bobbi had no authority to bind her mother to arbitration in signing the admission papers and (2) even if she did have such authority, the arbitration agreement was procedurally and substantively unconscionable.
After extensive briefing and oral argument, the trial court denied defendants' motion to compel arbitration and granted plaintiff's motion for preferential trial setting. Only Horizon West and Monterey Pines (hereinafter appellants) filed a notice of appeal, limited to the order denying defendants' motion.
The central issue before us is whether there existed a valid agreement entitling appellants to nonjudicial arbitration of plaintiff's claims. In denying defendants' motion the trial court reasoned that (1) compelling arbitration would be inconsistent with the Legislature's intent that litigants in plaintiff's circumstances receive trial preference; (2) Bobbi lacked authority, either actual or ostensible, to bind her mother to arbitration when she signed the admission papers containing the agreement; and (3) the circumstances surrounding execution of the arbitration agreement were "troubling."
Appellants argue that the court erred to the extent that it relied on the "possibility" of inconsistent decisions.
We therefore turn to the principal question of whether plaintiff was bound by the agreement her daughter signed on her behalf — specifically, whether Bobbi had the authority to represent plaintiff in agreeing to arbitration. This issue presents both factual questions — e.g., did plaintiff specifically authorize Bobbi to sign the agreement for her — and legal issues — e.g., did plaintiff's advanced health care directive confer such authority on her daughter. Only if Bobbi did have that authority do we consider the next question, whether the agreement itself was unconscionable.
Our review is governed by settled principles. To the extent that the lower court's order is based on a finding of material fact, we adopt a substantial evidence standard. (Robertson v. Health Net of California, Inc. (2005) 132 Cal.App.4th 1419, 1425 [34 Cal.Rptr.3d 547].) On the other hand, question of law, including the legal effect of the undisputed contract language, are reviewed de novo. (Buckner v. Tamarin (2002) 98 Cal.App.4th 140, 142 [119 Cal.Rptr.2d 489];
Appellants' first theory regarding Bobbi's authority to bind plaintiff to arbitration is that she was plaintiff's agent, based on a power of attorney for health care (POA), which was part of plaintiff's advanced health care directive. The POA provided that when plaintiff's primary physician determined that she was unable to make her own health care decisions, her "agent" was authorized to make specified health care decisions for her. Appellants concede that plaintiff's physician never made this determination, but they maintain that the evidence supplied in her deposition established her complete incapacity and need for Bobbi's intervention. As the trial court recognized, however, such evidence does not substitute for satisfaction of the condition stated in the terms of plaintiff's advanced health care directive.
Probate Code section 4682 makes this clear: "Unless otherwise provided in a power of attorney for health care, the authority of an agent becomes effective only on a determination that the principal lacks capacity, and ceases to be effective on a determination that the principal has recovered capacity." On the POA form, plaintiff elected not to check the box allowing her "agent" to make health care decisions for her without a prior determination of incapacity by her physician. This important fact distinguishes the case before us from Garrison v. Superior Court (2005) 132 Cal.App.4th 253 [33 Cal.Rptr.3d 350],
Similarly, appellants admit that Bobbi was not plaintiff's primary "health care agent" under the POA. Plaintiff's husband, Robert, assumed that role; Bobbi was to be the "first alternate agent" only if Robert was "not willing, able, or reasonably available to make a health care decision for [plaintiff]." Appellants argue that plaintiff's and Robert's deposition testimony supported the conclusion that Robert was "in poor health and recovering from a stroke," and therefore "not able or reasonable [sic] available to make health care decisions for Plaintiff." Appellants made this assertion to the trial court, which implicitly rejected their position on this factual issue and relied instead on the document's clear prerequisite to her agent's assumption of responsibility.
Finally and most importantly, the POA contains no terms authorizing the patient's agent to make any decisions other than "health care decisions" for the patient. Appellants strive to avoid the legal effect of this omission, again citing Garrison v. Superior Court, supra, 132 Cal.App.4th 253. Garrison, however, is distinguishable for this reason as well. There the durable power of attorney included "the power to sign `[a]ny necessary waiver or release from liability required by a hospital, or physician.'" (Id. at p. 259.) The reviewing court did, however, express the view that the term "health care decisions" made by an agent encompasses the execution of arbitration agreements on behalf of the patient. So broad an interpretation of "health care decisions" seems unnecessary to the result in Garrison, and to the extent that the court intended such a general application, we disagree with its conclusion.
Weakest of all is appellants' assertion, repeated in their reply brief, that plaintiff's husband "confirmed" that their daughter was authorized to act on their behalf. The testimony they offer is Robert's statement that Bobbi was their "legal guardian." This characterization was nothing more than a legal conclusion unsupported by any facts, and it was indeed contradicted by all of the other evidence, including the terms of plaintiff's advanced health care directive.
Appellants next contend that plaintiff is bound by equitable estoppel. Of the nine decisions they cite addressing this doctrine, none involves facts comparable to the case before us. All apply the doctrine either to compel a signatory plaintiff to arbitrate with a nonsignatory defendant (e.g., Boucher v. Alliance Title Co., Inc. (2005) 127 Cal.App.4th 262, 268 [25 Cal.Rptr.3d 440]; Metalclad Corp. v. Ventana Environmental Organizational Partnership
Nor does one isolated sentence from Crowley Maritime Corp. v. Boston Old Colony Ins. Co. (2008) 158 Cal.App.4th 1061 [70 Cal.Rptr.3d 605] help appellants. The issue there was whether liability insurers who had settled an action could be compelled to arbitrate their equitable contribution claim against the nonsettling insurers. Affirming the trial judge, the reviewing court held that they could not, because "equitable contribution arises not from contract but from equity." (Id. at p. 1068.) The court next rejected the appellant insurers' argument that the respondent insurers could be compelled to arbitrate under the plaintiff's agreement with the appellant insurers. The appellants had confused the doctrine of equitable contribution with equitable subrogation. The former did not compel the respondent insurers to stand in the shoes of the plaintiff, who had signed the agreement with the appellant insurers. The multiple insurers involved had individually contracted with their insureds, not with one another. Thus, the respondent insurers could not be compelled to arbitrate under an agreement to which they were not a party. Equitable estoppel based on a "preexisting relationship" was not a viable alternative, because (a) such a relationship did not exist, and (b) the respondent insurers were "not suing for direct benefits under the insurance contracts with [plaintiff] Crowley," but sought from "`other insurers benefits [r]espondents have provided to Crowley.'" (Id. at pp. 1070-1071.) Clearly Crowley has no application to this case. Plaintiff did not sue for a "direct benefit" under her contract with the nursing facility, but complained of noncontractual injury received during her stay there. And unlike the cases cited by appellants, the arbitration provision on which they rely never became effective in the first place.
Several appellate decisions, most of them not mentioned in appellants' briefs, have confirmed these tenets. In Pagarigan v. Libby Care Center, Inc. (2002) 99 Cal.App.4th 298 [120 Cal.Rptr.2d 892], a patient's adult children sued a skilled nursing facility as their mother's successors in interest (as well as on their own behalf, for wrongful death). The superior court denied the facility's petition to compel arbitration and the appellate court affirmed. Merely signing arbitration agreements after their mother's admission did not give the plaintiffs authority to bind her to arbitration. Nor was there any evidence that their mother, who was "comatose and mentally incompetent," had done anything that "caused [the defendants] to believe [that] either of her daughters was authorized to act as her agent in any capacity." (Id. at p. 302.)
The court in Goliger v. AMS Properties, Inc. (2004) 123 Cal.App.4th 374 [19 Cal.Rptr.3d 819] followed the lead of Pagarigan. There a rehabilitation facility unsuccessfully argued that the plaintiff's daughter was either actually or ostensibly authorized to agree to arbitration of the plaintiff's negligence claims. It was not enough that the plaintiff "let" her daughter act for her by making medical decisions and arranging treatment for her. (Id. at p. 376.) The appellate court also found it significant that the daughter had signed the arbitration agreements as "`responsible party'" but left the line for "agent" blank. (Id. at pp. 376-377.)
Flores, supra, 148 Cal.App.4th 581 is the one relevant case appellants try to distinguish. They do not succeed. In that case Josephina Flores's husband,
Similar facts were presented in Warfield v. Summerville Senior Living, Inc. (2007) 158 Cal.App.4th 443 [69 Cal.Rptr.3d 783]. There, too, the patient's husband signed an arbitration agreement after she was admitted. Following Flores, the appellate court rejected the facility's argument that the husband had ostensible authority to bind the plaintiff, because there was "absolutely no evidence of the wife's `express or implied consent to have her husband act as her agent.'" (Id. at p. 448, quoting Flores, supra, 148 Cal.App.4th at p. 589.) Also without merit was the facility's argument that the plaintiff, by having "`never once voiced disagreement'" with the living arrangement and services selected by her husband, acquiesced in her husband's representation as her agent. (Warfield, at p. 448.) Even if the facility had supplied evidence of this factual assertion, "the failure of a resident suffering from dementia to object to the living arrangements her husband had made would hardly constitute evidence that she had authorized him to act as her agent in waiving her right to a jury trial." (Ibid.) Because there was no evidence of her husband's agency in the plaintiff's conduct, ostensible authority had not been shown.
The trial court here was clearly not convinced that plaintiff did anything to permit an inference of ostensible authority. The admissions coordinator, Jacqueline Auker, stated in her declaration that it was her "custom and practice" to provide the arbitration agreement to the resident "and/or his legal representative/agent [and] answer any questions that he/she may have." In this situation, it would have been the purported representative, plaintiff's daughter, who could have articulated questions and expressed consent.
We are, to put it simply, unconvinced. Using the common word "convinced" in stating a factual finding is no more improper than a statement by our Supreme Court that juror unanimity in a theory of murder is unnecessary "`as long as each juror is convinced beyond a reasonable doubt that defendant is guilty of murder....' [Citation.]" (People v. Valdez (2012) 55 Cal.4th 82, 153 [144 Cal.Rptr.3d 865, 281 P.3d 924].)
The order denying appellants' motion is affirmed.
Rushing, P.J., and Premo, J., concurred.