Smalley v. JHA-Markleysburg Inc.

3 Pa. D. & C.5th 471
Pennsylvania Court of Common Pleas, Fayette County·Decided November 15, 2007·No. nos. 30 of 2006, G.D. and 1514 of 2005, G.D·Published·Cited by 1 cases

Opinion

SOLOMON, J,

BACKGROUND

Initially commenced at docket no. 1514 of 2005, G.D., on June 21, 2005, this action was consolidated after a complaint against other defendants was filed at docket no. 30 of 2006, G.D. Overall, this consolidated action alleges professional negligence, corporate negligence, negligence, and wrongful death against the defendants. Among those named as defendants were Beverly Enter[473] prises-Pennsylvania Inc. d/b/a Beverly HealthcareUniontown, Beverly Health and Rehabilitation Services Inc. and Beverly Enterprises Inc.

The defendants filed preliminary objections to the complaint of the plaintiff seeking, in part, an enforcement of an arbitration agreement entered into by F. Randall Smalley (plaintiff), on March 3, 2004, on behalf of his father, Frederick Smalley Jr. (decedent). The plaintiff asserts that he did not have authority to enter into the arbitration agreement on behalf of his father because his father was incapacitated at the time of the execution of a power of attorney. An evidentiary hearing was then held on the issue of the validity of the arbitration agreement.

STATEMENT OF THE CASE

Prior to his death, the decedent required full-time care from a nursing facility. In his complaint, the plaintiff alleges that during his stay at certain nursing facilities, the decedent was not provided with adequate health care, with the lack thereof ultimately contributing to his death. Among these allegations, the plaintiff’s complaint avers that his father failed to receive the proper degree of care at Beverly Healthcare-Uniontown,1 a facility owned, operated, and managed by the defendants.2

On March 3,2004, while at the Henry Clay Villa facility, and prior to being admitted to the facility of the defendants, the decedent executed a document granting the [474] plaintiff power of attorney.3 The plaintiff wanted the power of attorney so that he would have the ability to cash the decedent’s checks and to transfer a property interest of his father’s.4 Present as a witness during the execution of this power of attorney was Brenda Waters, a notary public.5

In the months leading up to the execution of the power of attorney, the decedent often had difficulty with conversations because his speech was slurred.6 In his deposition, the plaintiff stated that his father did not read the document7 and that when he executed the document, he “scratched his name on the document.”8 With regard to whether his father knew the purpose of the document when he signed it, the plaintiff offers contradictory testimony. When asked if his father appeared to know why the power of attorney was needed, the plaintiff answered, “[a]s far as I know.”9 Then, when later asked if his father had the mental ability to sign a power of attorney, he responded, “I don’t think he would even know totally what was going on,”10 describing his father’s condition as being similar to someone who had suffered a stroke.11

[475] On June 2, 2004, due to a worsening medical condition, the decedent was admitted to Beverly HealthcareUniontown.12 Two days later, on behalf of his father, the plaintiff signed an arbitration agreement that was witnessed by Sharon Bealko.13 The arbitration agreement provides that:

“It is understood and agreed by facility and resident that any and all claims, disputes, and controversies . . . arising out of, or connection with, or relating in any way to the admissions agreement or any service or health care provided by the facility to the resident shall be resolved exclusively by binding arbitration....”14

After instituting this action, the plaintiff obtained the affidavit of Dr. Frank Perrone, dated July 25, 2006, asserting that Frederick Smalley had a history of mental illness.15 The doctor states that during the period from April 2002 through May 10, 2004, he regularly treated the decedent.16 Primarily, the doctor opines that the decedent suffered from dementia and severe cognitive impairment connected to years of alcohol abuse.17 Since the decedent suffered from these conditions, Dr. Perrone believed that Frederick Smalley lacked the mental capacity to know the nature of his actions at the time he executed the power of attorney.18 This conclusion is based [476] upon a review of medical records as well as his recollections of the decedent while he was a patient.19

DISCUSSION

The preliminary objections of the defendants seek to compel the plaintiff to submit to arbitration, arguing that since a valid arbitration agreement was entered into by the plaintiff and Beverly Healthcare-Uniontown, the plaintiff’s only available remedy is through the arbitration process. In opposition, the plaintiff claims that the arbitration agreement is not a valid contract since it was executed when the plaintiff, under his power of attorney, lacked authority due to his father’s incapacity.

Under Pa.R.C.P. 1028(c)(2), if an issue of fact is raised by preliminary objection, the court shall consider evidence by “deposition or otherwise.” Further, the Pennsylvania Superior Court has held that where facts are controverted by preliminary objections, the trial court must resolve the dispute by receiving evidence through “interrogatories, depositions, or an evidentiary hearing.” Slota v. Moorings Ltd., 343 Pa. Super. 96, 100, 494 A.2d 1, 3 (1985). The submission of evidence by affidavit is not recommended to determine preliminary objections, but courts have relied on affidavits when “the facts attested to . . . [are] both clear and specific.” Ambrose v. Cross Creek Condominiums, 412 Pa. Super. 1, 14, 602 A.2d 864, 870 (1992).

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Smalley v. JHA-Markleysburg Inc., 3 Pa. D. & C.5th 471 (Pa. Super. Ct. 2007).

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