Reno v. Continuum at Sharmar, Inc.

CourtColorado Court of Appeals
DecidedJune 4, 2026
Docket25CA0491
StatusUnpublished

This text of Reno v. Continuum at Sharmar, Inc. (Reno v. Continuum at Sharmar, Inc.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reno v. Continuum at Sharmar, Inc., (Colo. Ct. App. 2026).

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.

1 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

2 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.

3 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.

4 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

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