Baptist Health Medical Center v. First Community Bank of Batesville

2017 Ark. App. 671, 537 S.W.3d 760
CourtCourt of Appeals of Arkansas
DecidedDecember 6, 2017
DocketNo. CV-17-62
StatusPublished
Cited by2 cases

This text of 2017 Ark. App. 671 (Baptist Health Medical Center v. First Community Bank of Batesville) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baptist Health Medical Center v. First Community Bank of Batesville, 2017 Ark. App. 671, 537 S.W.3d 760 (Ark. Ct. App. 2017).

Opinion

LARRY D. VAUGHT, Judge

| Appellant Baptist Health- Medical Center (BHMC) appeals the Pope County Circuit Court’s denial of its motion to vacate the court’s previously issued guardianship order appointing First Community Bank of Batesville (the Bank) as the guardian,of William Scott Mueller’s estate for the purpose of prosecuting a medical-negligence action on his behalf and managing any assets obtained therefrom. BHMC claims that deficiencies in the original guardianship petition rendered the guardianship void ab initio. We disagree and affirm.

Mueller was severely injured in a motor vehicle accident on June 21, 2012. He was treated at BHMC. Mueller was rendered a quadriplegic, and on July 11, 2012, Mueller executed a durable power of attorney to Amanda Chavers. Chavers then engaged an attorney to prosecute Mueller’s personal-injury claims. On May 29, 2014, Chavers petitioned the circuit court for an order appointing the Bank as permanent guardian of Mueller’s estate for the sole purpose of prosecuting a medical-negligence action on his behalf and managing any |2assets obtained therefrom. The petition alleged that Mueller was incapacitated by virtue of his quadriplegia. Attached to the petition was a life-care plan prepared by Tanya Rutherford Owens, a certified life-care planner and rehabilitation counselor.

The court granted the guardianship petition, and the Bank was then substituted as the plaintiff in the medical-negligence suit. During the medical-negligence trial, Mueller testified that he was the primary caregiver for his young son and handled his own finances, which prompted BHMC to challenge the Bank’s standing as guardian, arguing that Mueller was not incapacitated and that the guardianship was invalid. The Bank voluntarily nonsuited the medical-negligence action before it was submitted to the jury.

In March 2016, BHMC moved to intervene in the probate case in order to challenge the validity of the guardianship. In its motion to vacate the, court’s February 26, 2015 guardianship order, BHMC argued that (1) the original order was not supported by an oral or sworn written statement by a “qualified professional” as that term is defined in the probate code; (2) pursuant to the trial testimony of Mueller and Chavers in the medical-negligence case, Mueller was not “incapacitated”; and (3) there was no evidence that a proper medical evaluation had been conducted before the appointment of a guardian.

In response, the Bank filed an amended guardianship petition and attached the report of Dr. Kristi Ketz, a licensed psychologist. The amended petition provided that Mueller and his sister agreed that the guardianship should - be continued. On April 22, 2016, the court entered an amended guardianship order, again appointing the Bank as Mueller’s guardian. The amended order indicated that there had been a hearing on the amended petition and Lthat BHMC had been present, although the court had not yet rule,d on its motion to intervene.1

On July 27, 2016, Mueller filed a motion to terminate the guardianship, claiming that it was no longer necessary. On August 17, 2016, the court held a hearing on BHMC’s motion to vacate the original guardianship order and Mueller’s motion to terminate the guardianship. The circuit court orally granted the motion to terminate and denied the motion to vacate. An order granting the motion to terminate the guardianship was filed on August 31, 201.6. No appeal was taken from this order.

An order denying BHMC’s motion to vacate the original guardianship order was entered on October 21, 2016. That order stated that the original guardianship order was voidable, rather than automatically void, due to deficiencies in the original petition seeking the appointment, of a guardian. The order noted that Dr. Tanya Owen, author of the life-care plan attached as supporting evidence for the original petition, lacked the necessary qualifications required by Arkansas Code Annotated section 28-66-101(8) (Repl. 2012). The court’s order then stated that the amended guardianship petition, which met the statutory requirements, cured the deficiencies in the original petition and that the amended order “relates back” to the time that the original petition was submitted. The order further held that any actions taken by the Bank as guardian in reliance on the original order were valid from the date of the original appointment. BHMC appeals from this order.

|4We review probate proceedings de novo, but we will not reverse a finding of fact by the circuit court unless it is clearly erroneous. Donley v. Donley, 2016 Ark. 243, at 6, 493 S.W.3d 762, 766 (citing Graham v. Matheny, 2009 Ark. 481, 346 S.W.3d 273). A finding is clearly erroneous when, although there is evidence to support it, the reviewing court is left with a definite and firm conviction that a mistake has been made. Id. at 6, 493 S.W.3d at 766. When reviewing the proceedings, we give due regard to the opportunity and superior position of the circuit court to determine the credibility of the witnesses. Id. at 6, 493 S.W.3d at 766. However, we give no deference to the circuit court on matters of law. Freeman v. Rushton, 360 Ark. 445, 202 S.W.3d 485 (2005).

It is undisputed that the original petition failed to meet the statutory requirements - for obtaining a guardianship. BHMC argues that, as a result, the court’s original guardianship order was void ab initio and that the court therefore erred in denying BHMC’s motion to vacate. BHMC relies on Wilson v. Beckett, 95 Ark. App. 300, 236 S.W.3d 527 (2006), and Poe v. Case, 263 Ark. 488, 565 S.W.2d 612 (1978), for the proposition that an order issued in excess of the court’s statutory authority is void. At oral argument, BHMC’s counsel made clear that this was an argument about the circuit court’s jurisdiction to issue 'the original guardianship order, asserting that the petition’s deficiencies meant that the court lacked jurisdiction to issue the order. We disagree. The law has long recognized' a difference • between' a lack of jurisdiction and the-erroneous exercise of jurisdiction. See, e.g., Cato v. Craighead Cty. Circuit Court, 2009 Ark. 334, at 5, 322 S.W.3d 484, 488 (citing Erin, Inc. v. White Cty. Circuit Court, 369 Ark. 265, 268, 253 S.W.3d 444, 446 (2007)). Moreover, in other cases in which we have found that the statutory requirements for obtaining a guardianship were not met, we have | ^reversed rather than dismissed for lack of jurisdiction, indicating that a deficiency in the evidence presented to obtain the guardianship order does not strip the court of jurisdiction. See Autry v. Beckham, 2014 Ark. App. 692, at 7, 450 S.W.3d 247, 251.

Here, it is undisputed that the, circuit court had jurisdiction over the, parties and subject matter at issue in this case, and BHMC has provided us no persuasive argument or authority as to why the guardianship petition’s acknowledged" deficiencies should be treated aá. a. jurisdictional bar. As a result, we see no .error in the circuit court’s determination that the original guardianship order was simply voidable rather than void ab initio.

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2017 Ark. App. 671, 537 S.W.3d 760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baptist-health-medical-center-v-first-community-bank-of-batesville-arkctapp-2017.