Reno v. Continuum at Sharmar, Inc.

Colorado Court of Appeals·Decided June 4, 2026·No. 25CA0491·Unpublished

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY

June 4, 2026

2026 COA 46

No. 25CA0491, Reno v. Continuum at Sharmar, Inc. — Health and Welfare — Health Care Availability Act — Arbitration Agreements; Agency — Principal-Agent Relationship — Medical Durable Power of Attorney — Actual Authority — Apparent Authority

A division of the court of appeals holds that a medical durable power of attorney (MDPOA) does not confer authority on the agent to enter into an arbitration agreement on behalf of her principal unless the MDPOA expressly grants that authority. Applying this holding, the division affirms the district court’s denial of a health care facility’s motion to compel arbitration.

COLORADO COURT OF APPEALS 2026 COA 46

Court of Appeals No. 25CA0491 Pueblo County District Court No. 24CV30331 Honorable Michelle Chostner, Judge

Vicki Reno, individually and as Personal Representative of the Estate of Marjorie Henderson, deceased,

Plaintiff-Appellee, v. Continuum at Sharmar, Inc. d/b/a Sharmar Village Care Center, Inc., Defendant-Appellant.

ORDER AFFIRMED

Division VI

Opinion by JUDGE BERGER*

Gomez and Moultrie, JJ., concur

Announced June 4, 2026

Reddick Law, PLLC, Brian D. Reddick, Matthew D. Swindle, Heather G. Zarchary, Little Rock, Arkansas, for Plaintiff-Appellee

Hall & Evans, L.L.C., David B. Gelman, Jared R. Ellis, Denver, Colorado, for Defendant-Appellant

*Sitting by assignment of the Chief Justice under provisions of Colo. Const. art. VI, § 5(3), and § 24-51-1105, C.R.S. 2025.

¶1 Defendant, Continuum at Sharmar, Inc. d/b/a Sharmar Village Care Center, Inc. (Sharmar), appeals the district court’s order denying its motion to compel arbitration with plaintiff, Vicki Reno, individually and as personal representative of the Estate of Marjorie Henderson. We affirm the order.

¶2 Following the analysis in Lujan v. Life Care Centers of America, 222 P.3d 970 (Colo. App. 2009), and Fresquez v. Trinidad Inn, Inc., 2022 COA 96, but disagreeing with one of the holdings in Moffett v. Life Care Centers of America, 187 P.3d 1140 (Colo. App. 2008) (Moffett I), aff’d on other grounds, 219 P.3d 1068 (Colo. 2009) (Moffett II), we hold that a medical durable power of attorney (MDPOA) does not confer authority on the agent to enter into an arbitration agreement with a health care provider on behalf of the principal unless that authority is expressly stated in the MDPOA.

I. Relevant Facts and Procedural History

¶3 In 2014, Marjorie Henderson signed an MDPOA, appointing one of her daughters, Brenda Wills, as her attorney-in-fact.1 The

1 We use the terms “attorney-in-fact” and “agent” interchangeably throughout this opinion.

MDPOA specified the scope of actions Wills was authorized to take on Henderson’s behalf, including giving Wills authority (1) to act for her “in all matters relating to [Henderson’s]

health care”;

(2) “to consent . . . to all medical, surgical, hospital, and related health care treatments and procedures on [Henderson’s] behalf”;

(3) “to sign any documents required to request [release from a facility]. . . or to be released . . . to another facility”;

(4) “to provide . . . consent to health care treatments or procedures on [Henderson’s] behalf”; and (5) “to authorize [Henderson’s] admission to or transfer from a health care facility.”

¶4 The MDPOA specifically prohibited Wills from acting for Henderson “for any other purpose unrelated to [her] health care.” It authorized Wills to act on Henderson’s behalf once the MDPOA was signed. It also provided that the power became effective when Henderson had been determined “to be incapable of providing

informed consent for medical treatment and surgical and diagnostic procedures.”2

¶5 Henderson was admitted to Sharmar’s nursing home in Pueblo nearly one decade after she signed the MDPOA. Henderson, Wills, and a Sharmar representative initially met to sign the admission paperwork. Henderson left midway through the meeting to attend another appointment, and Wills completed the paperwork alone, including signing the arbitration agreement.

¶6 Arbitration agreements between patients and health care providers are governed by Colorado’s Health Care Availability Act (HCAA). §§ 13-64-101 to -503, C.R.S. 2025. The HCAA mandates that health care arbitration agreements be voluntary, contain several disclosures, and be subject to rescission for any reason within three months of signing. § 13-64-403(1), (3)-(4), C.R.S. 2025. Sharmar’s arbitration agreement contained the mandatory disclosures — including a disclaimer that no health care providers

2 Because of our disposition of this appeal, we need not consider

whether these terms regarding the effective date of the MDPOA are inconsistent or whether any inconsistency bears on the dispositive question in this case.

are allowed to refuse services to a patient solely because they refused to sign an arbitration agreement. § 13-64-403(4), (7).3

¶7 The agreement provided that “any legal dispute, controversy, demand, or claim . . . that arises out of or relates to the Admissions Agreement or any service or health care provided by [Sharmar] to [Henderson]” would be arbitrated. The arbitration agreement encompassed any claims of wrongful death, negligence, gross negligence, or other “departure[s] from accepted standards of medical or health care or safety,” and it extended to Henderson’s heirs.

¶8 Approximately one month after Henderson was admitted to Sharmar, she suffered two falls in roughly forty-eight hours. Doctors determined palliative care was the best course of action based on her injuries, and she died three days after her first fall.

¶9 Following Henderson’s death, Vicki Reno, another of Henderson’s daughters and the personal representative of Henderson’s estate, sued Sharmar and its administrator for

3 There is no dispute that Wills signed the admission paperwork, including the arbitration agreement.

negligence, violations of the Colorado Consumer Protection Act, and wrongful death.

¶ 10 Sharmar moved to compel arbitration and stay proceedings based on the arbitration agreement signed by Wills. Reno opposed the motion, arguing the agreement was invalid because Wills had no authority to enter into an arbitration agreement on behalf of Henderson.

¶ 11 Limited discovery was conducted regarding the scope of Wills’s authority and the circumstances under which the arbitration agreement was signed. Without holding an evidentiary hearing, the district court denied Sharmar’s motion to compel arbitration, ruling that the MDPOA did not grant Wills the authority to enter into the arbitration agreement on Henderson’s behalf and that Wills did not have actual or apparent authority to do so based on her words or actions.

¶ 12 Sharmar appeals, arguing that the district court (1) misinterpreted the scope of Wills’s MDPOA; (2) erroneously determined Wills lacked actual or apparent authority to execute the arbitration agreement; and (3) failed to address Sharmar’s argument that Reno was estopped from challenging the validity of

the arbitration agreement. We address and reject each contention below.

II. Standard of Review

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