Preferred Care of Delaware, Inc. v. Vanarsdale

676 F. App'x 388
CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 13, 2017
Docket16-5209
StatusUnpublished
Cited by29 cases

This text of 676 F. App'x 388 (Preferred Care of Delaware, Inc. v. Vanarsdale) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Preferred Care of Delaware, Inc. v. Vanarsdale, 676 F. App'x 388 (6th Cir. 2017).

Opinion

ROGERS, Circuit Judge.

This case involves the propriety of Colorado River abstention in a federal lawsuit brought under the Federal Arbitration Act. After Simm VanArsdale’s mother died in the care of a nursing home run by Preferred Care of Delaware, he brought suit in state court on behalf of her estate, asserting a number of state-law claims of negligence as well as a claim for wrongful death. While his mother was still alive, VanArsdale had assumed authority over her financial and health care decisions through a general durable power-of-attorney agreement, and, acting under that authority, had signed an optional arbitration agreement on her behalf with Preferred Care. Pointing to that agreement, Preferred Care answered in state court that VanArsdale could not bring the estate’s claims against it in state court, and was instead required to pursue them in arbitration. Meanwhile, Preferred Care also filed suit in federal district court seeking an order to compel arbitration pursuant to Section 4 of the Federal Arbitration Act and a preliminary injunction against Van-Arsdale to enjoin him from proceeding with the state suit. While those motions were being briefed in the federal district court, however, the state court granted summary judgment on the arbitrability issue, concluding that under Kentucky law VanArsdale lacked authority to enter into the arbitration agreement on his mother’s behalf and that the agreement was therefore unenforceable. Not long after, the federal district court denied Preferred Care’s request for an injunction, and later, citing Colorado River Water Conservation District v. United States, 424 U.S. 800, 820, 96 S.Ct. 1236, 47 L.Ed.2d 483 (1976), declined to exercise jurisdiction, in light of the state court’s intervening ruling. Preferred Care challenges both of those decisions on appeal. Because the district court correctly determined that the state and federal actions were parallel, and that the relevant factors under Colorado River counseled abstention, it properly decided to abstain in this case.

I.

Two years after Judith VanArsdale became a resident of Madison Nursing & Rehabilitation Center, a nursing facility in Richmond, Kentucky, Preferred Care of Delaware assumed responsibility for operations at the site. As a part of that transition Preferred Care asked the residents or their legal representatives to sign additional paperwork, including the optional Alternative Disputé Resolution Agreement (“ADR agreement”) that is the subject of this suit. That agreement required arbitration for:

any and all disputes arising out of or in any way relating to this Agreement or to the Resident’s stay at the Center that would constitute a legally cognizable cause of action in a court of law sitting in the Commonwealth of Kentucky and shall include, but not be limited to, all claims in law or equity arising from one Party’s failure to satisfy a financial obligation to the other Party; a violation of a right claimed to exist under federal, state, or local law or contractual agreement between the Parties; tort; breach of contract; fraud; misrepresentation; negligence; gross negligence; malprac *390 tice; death or wrongful death and any alleged departure from any applicable federal, state, or local medical, health care, consumer or safety standards.

Ms. VanArsdale did not execute the agreement herself, however. That was instead left to her son, Simm VanArsdale (“Van-Arsdale”), who had assumed authority over his mother’s affairs pursuant to a general durable Power of Attorney agreement. That agreement laid out a series of grants of authority broadly covering her financial and medical interests, including in its first section a general and two more specific provisions:

1. GENERAL GRANT OF POWER: To exercise or perform any act, power, duty, right or obligation whatsoever that I now have or may hereinafter acquire relating to any person, matter, transaction or property, real or personal, tangible or intangible, now owned or hereafter acquired by me, including, without limitation, the following specifically enumerated powers, I grant to my attorney full power and authority to do everything necessary in exercising any of the powers hereinbelow granted as fully as I might or could do if personally present, with full power of substitution or revocation, hereby ratifying and confirming all that my attorney shall lawfully do or cause to be done by virtue of this power of attorney and the powers herein granted.
A. POWERS OF COLLECTION AND PAYMENTS: To forgive, request, demand, sue for, recover, collect, receive, liquidate, and hold all such sums of money, debts due, commercial paper, checks, drafts, accounts, deposits, legacies, bequests, devises, notes, interest, stocks, certificates of deposit, retirement, social security, insurance and other contractual benefits and proceeds, annuities, all documents of title, all property, real or personalty [sic], tangible or intangible property and property rights, and demands whatsoever, liquidated or unliquidated, now or hereafter owned by me, or due and owing, payable or belonging to me or in which I have or may hereafter acquire an interest; to have, use, and take lawful means and equitable and legal remedies and proceedings in my name for the collection and recovery thereof, and to adjust, sell, compromise and agree for the same; and to execute and deliver for me, on my behalf, and in my name, all endorsements, releases, receipts, or other sufficient discharges for the same.
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H. BUSINESS INTERESTS. To conduct or participate in any lawful business of whatever nature for me and in my name, including the authority to request, demand, sue for, recover, collect, receive, and hold all such sums of money, debts due, commercial paper, checks, drafts, accounts, and deposits of said business; to have and use lawful means and equitable and legal remedies and proceedings in my name for the collection and recovery thereof; to elect or employ employees, officers, directors, and attorneys; to carry out the provisions of any agreement for the sale of any business interest or the stock therein; and to exercise voting rights with respect to stock, either in person or by proxy; and to perform any and all other acts necessary in the operation of said business.

A separate general grant of authority, not included under this first “general grant of power,” specifically addressed Ms. Van-Arsdale’s medical care. Like the “general grant” of the first section, this section also carried its own general authorization for VanArsdale ,“[t]o make any and all health care decisions for [Ms. VanArsdale],” an *391 authority that “includes, but is not limited to,” eight specific provisions dealing in various aspects of Ms. VanArsdale’s health care.

In October 2015, several months after Ms. VanArsdale’s death, VanArsdale, acting as administrator of his mother’s estate, filed suit against Preferred Care in Kentucky state court asserting various state law negligence claims as well as a claim for wrongful death.

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Bluebook (online)
676 F. App'x 388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/preferred-care-of-delaware-inc-v-vanarsdale-ca6-2017.