Grenada Living Center, LLC v. Coleman

961 So. 2d 33, 2007 WL 2128392
CourtMississippi Supreme Court
DecidedJuly 26, 2007
Docket2006-CA-00169-SCT
StatusPublished
Cited by36 cases

This text of 961 So. 2d 33 (Grenada Living Center, LLC v. Coleman) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grenada Living Center, LLC v. Coleman, 961 So. 2d 33, 2007 WL 2128392 (Mich. 2007).

Opinion

961 So.2d 33 (2007)

GRENADA LIVING CENTER, LLC, Community Care Center of Grenada, LLC, Comm Care Mississippi, James S. Williams and James C. Landers
v.
Cephus COLEMAN, III (substituted for Anne Donaldson), as Personal Representative of Cephus Coleman, Jr., Deceased and on behalf of the Wrongful Death Beneficiaries of Cephus Coleman, Jr., Deceased.

No. 2006-CA-00169-SCT.

Supreme Court of Mississippi.

July 26, 2007.

*35 Steven Mark Wann, Marjorie Selby Busching, Jackson, attorneys for appellant.

Charles E. Gibson, III, Jackson, Gigi Gibson, Ridgeland, attorneys for appellee.

EN BANC.

DIAZ, Presiding Justice, for the Court.

¶ 1. This case addresses when a person is subject to the Uniform Healthcare Decisions Act and when a non-signatory is subject to arbitration.

Facts and Proceedings Below

¶ 2. Cephus Coleman, Jr. was a World War II veteran, paralyzed since eighteen from a wound suffered in battle. In a wheelchair since his service days, he earned a college degree, married, had a child, and served as pastor to a church. In 2003, well into his seventies, Mr. Coleman was living with his half-sister, Anne Donaldson. She needed help caring for him, and sought a nursing home who would accept the Veterans Administration benefits Cephus received. Grenada Living Center accepted the VA benefits, and Anne took steps to have Mr. Coleman become a resident.

¶ 3. In July of 2003 Mr. Coleman became a resident of Grenada Living Center, and he passed away on January 22, 2004, while still a resident. After his death, a suit was filed by Cephus' son, Cephus Coleman, III, against the nursing home, which responded with the now-familiar motion to dismiss *36 in favor of arbitration.[1] Anne signed the contract for admission and placed her initials by the arbitration agreement. Coleman, wishing to avoid arbitration, argued that his father was never a party to the arbitration agreement and therefore could not have been bound by it.

¶ 4. At a hearing before the trial, the parties stipulated to several facts which are critical to our analysis.[2] First, it was agreed that when Mr. Coleman was mentally competent when his half-sister had him placed in the nursing home. Second, Mr. Coleman was not present when Anne signed the admission agreement and the arbitration agreement. Third, Anne is Mr. Coleman's half-sister who did not retain power of attorney, a conservatorship, a guardianship, or any other legal power over her half-brother. Mr. Coleman later executed a power of attorney in favor of his half-sister that the parties agreed was not retroactive.

¶ 5. The memoranda of the parties in the trial court and the hearings before the Grenada County Circuit Court focused on the issues on which many arbitration cases often turn, such as whether there was duress in the entering of the contract and if the agreement was unconscionable. After a review of two memoranda, multiple exhibits, and two hearings on the subject, the trial court issued a narrow ruling based on basic contract law: that, generally speaking, a contract is not enforceable against a person unless personally entered into. Accordingly, the trial court found that no contract existed and Mr. Coleman was not bound by arbitration.

¶ 6. Aggrieved, Grenada Living Center appeals, presenting us with one question on appeal: Is a competent person who was not a signatory to a contract bound by an arbitration clause contained within that contract?

Standard of Review

¶ 7. "The grant or denial of a motion to compel arbitration is reviewed de novo." East Ford, Inc. v. Taylor, 826 So.2d 709, 713 (Miss.2002). We have previously ruled that lawsuits involving negligence at a nursing home affects interstate commerce, thus invoking the Federal Arbitration Act. Vicksburg Partners, 911 So.2d at 515-16.

¶ 8. The FAA requires a two-step inquiry when scrutinizing an arbitration agreement. East Ford, 826 So.2d at 713. First, we must determine if the parties intended to arbitrate the dispute; if so, we next consider "whether legal constraints external to the parties' agreement foreclosed the arbitration of those claims." Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, 473 U.S. 614, 628, 105 S.Ct. 3346, 87 L.Ed.2d 444 (1985); East Ford at 826 So.2d at 713. "Under the second prong, applicable contract defenses available under state contract law such as fraud, duress, and unconscionability may be asserted to invalidate the arbitration agreement without offending the Federal Arbitration Act." Id. at 713; see 9 U.S.C. § 2 (an "agreement in writing to submit to arbitration an existing controversy . . . shall be valid, irrevocable, and enforceable, save upon such grounds as exist at law or in equity for the revocation of any contract").

Discussion

¶ 9. To determine if the parties are bound by arbitration, in this case we must *37 first determine if a contract exists between them. A valid contract must have (1) two or more contracting parties, (2) consideration, (3) an agreement that is sufficiently definite, (4) parties with legal capacity to make a contract, (5) mutual assent, and (6) no legal prohibition precluding contract formation. Rotenberry v. Hooker, 864 So.2d 266, 270 (Miss.2003). In this case we focus on the fourth and fifth factors-whether the parties who executed the contract had the legal ability to create the contract or assent to the contract.

¶ 10. Coleman asserts that Anne could not legally bind his father to arbitration because he was not a party to the contract. In response, Grenada Living Center offers four reasons why arbitration applies.

¶ 11. Grenada Living Center asserts that Anne acted as Cephus' healthcare surrogate, citing to the Uniform Healthcare Decisions Act. See Miss.Code Ann. § 41-41-203 et seq. (Rev.2005). This argument was never raised before the trial court in any fashion. We have "repeatedly held that a trial judge will not be found in error on a matter not presented to the trial court for a decision." Purvis v. Barnes, 791 So.2d 199, 203 (Miss.2001). Accordingly, this issue is procedurally barred.

¶ 12. Notwithstanding this procedural bar, we will briefly examine the plain language of the statute for the sake of guidance. Section 1 of the statute defines the requirements for any person who wishes to be a surrogate. There are two pre-conditions: "A surrogate may make a health-care decision for a patient who is an adult or emancipated minor if [1] the patient has been determined by the primary physician to lack capacity and [2] no agent or guardian has been appointed or the agent or guardian is not reasonably available." Miss.Code Ann. § 41-41-211(Rev.2005) (emphasis added). Therefore, a close reading of the statute reveals that a prerequisite before any other analysis is that a patient may only have a surrogate if they do not have mental capacity to make decisions and they do not have any other person legally available to care for them. Sections 2 and 3 of the statute define who may be a surrogate, but the preconditions of Section 1 must first be met.

¶ 13. In the case at hand, the parties stipulated that Mr.

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Cite This Page — Counsel Stack

Bluebook (online)
961 So. 2d 33, 2007 WL 2128392, Counsel Stack Legal Research, https://law.counselstack.com/opinion/grenada-living-center-llc-v-coleman-miss-2007.