Walton v. Johnson

66 A.3d 782, 2013 Pa. Super. 108, 2013 WL 1883251, 2013 Pa. Super. LEXIS 717
CourtSuperior Court of Pennsylvania
DecidedMay 7, 2013
StatusPublished
Cited by76 cases

This text of 66 A.3d 782 (Walton v. Johnson) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Walton v. Johnson, 66 A.3d 782, 2013 Pa. Super. 108, 2013 WL 1883251, 2013 Pa. Super. LEXIS 717 (Pa. Ct. App. 2013).

Opinion

OPINION BY

OTT, J.

Kindred Hospital — Philadelphia, Kindred Hospital East, LLC and Kindred Healthcare, Inc. (collectively “Kindred”) appeal from the order entered May 11, 2012 in the Court of Common Pleas of Philadelphia County overruling its preliminary objections, which sought to enforce an arbitration agreement between it and Lakeysha Walton. Kindred claims the trial court erred in failing to find Lakeysha Walton’s mother was acting as an agent for her when she signed the arbitration agreement. The agreement was part of a series of documents presented to Walton’s Mother, Nancy, regarding admission to the Kindred facility. After a thorough review of the submissions by the parties, relevant law, and certified record, we affirm and remand this matter for further proceedings.

We adopt and relate the factual background of this matter as stated by the trial court in its Pa.R.A.P. 1925(a) Opinion.

[785]*785Lakeysha Walton (hereinafter “Plaintiff’) and her mother, Nancy Walton, reside together in Trenton, New Jersey. [Kindred Hospital] Philadelphia [sic] is organized under the laws of the Commonwealth of Pennsylvania and is located in Philadelphia, PA. Defendant Kindred Hospital East, LLC is organized under the laws of the Commonwealth of Pennsylvania with its principal place of business in Philadelphia, PA. Defendant Kindred Healthcare, Inc. is a Delaware corporation with its principal place of business in Louisville, KY. Defendants Kindred Hospital Philadelphia, Kindred Hospital East, LLC and Kindred Healthcare, Inc. are collectively referred to herein as “Kindred Defendants.”
On January 13, 2010, Plaintiff underwent a gastric bypass procedure at Robert Wood Johnson. Following her discharge on January 18, 2010, Plaintiff began to experience abdominal pain and vomiting. Plaintiff returned to the Robert Wood Johnson Emergency Room on January 12, 2010 and was diagnosed with a bowel obstruction and gastric perforation. Plaintiff remained at Robert Wood Johnson from January 20, 2010 to February 12, 2010. During that time, Plaintiff experienced loss of consciousness, renal failure and infection. As a result, Plaintiff was intubated and became ventilator dependent. During her time at Robert Wood Johnson, Plaintiff developed bedsores on her sacrum and buttocks.
On February 12, 2010, Plaintiff was transferred to Kindred Hospital Philadelphia, where she remained until April 20, 2010. Plaintiff was thirty-six (36) years old at the time. Plaintiff was in a coma at the time of her admission to Kindred Hospital Philadelphia. During Plaintiff’s time at Kindred Hospital Philadelphia, her bedsores worsened. Plaintiff contends that the bedsores worsened because of the harm that was caused at Robert Wood Johnson, and because of the negligent care provided at Kindred Hospital Philadelphia.
On March 1, 2010 halfway through Plaintiffs stay at Kindred Hospital Philadelphia, Plaintiffs mother, Nancy Walton, signed a Voluntary Alternative Dispute Resolution Agreement (hereinafter “ADR Agreement”) as Plaintiffs “Legal Representative.” See Voluntary Alternative Dispute Resolution Agreement P. 4. In addition, Nancy Walton signed the following forms on Plaintiffs behalf: A HIPPA Disclosure form; a Medicare Rights form; a receipt of Valuables form; and consent forms for a bronchos-copy, a blood transfusion, and a transfer to Albert Einstein Medical Center. Despite the fact that Plaintiffs mother signed the aforementioned documents presented to her by representatives of Kindred, Plaintiff never gave her mother power of attorney and never authorized her mother to make decisions on Plaintiffs behalf. Additionally, Nancy Walton has never been granted authority by a court to act on her daughter’s behalf. Nancy Walton does not recall signing the ADR Agreement nor does she recall anyone from Kindred Hospital Philadelphia explaining the ADR Agreement to her or asking whether she had power of attorney. Finally, Nancy Walton was under the impression that she was merely signing documents that gave Kindred Hospital Philadelphia permission to treat Plaintiff and contends that if she had been advised otherwise, she would have refused to sign any documents waiving Plaintiffs right to a jury trial.
During Plaintiffs stay at Kindred Hospital Philadelphia, she had no understanding of who was handling her admission paperwork. Nancy Walton never men[786]*786tioned anything to Plaintiff about signing paperwork at Kindred Hospital Philadelphia. Plaintiff never read the ADR Agreement nor was she made aware of the significance of the Agreement. In fact,. Plaintiff was not aware that the Agreement included a waiver of her right to a jury trial until two years after Plaintiff was discharged. Moreover, Plaintiff was never asked to sign an ADR Agreement during her stay at Kindred Hospital Philadelphia.

Pa.R.A.P. 1925(a) Opinion at 1-4.

On January 12, 2012, two years after her return to Robert Wood Johnson emergency room for follow-up treatment, Lakeysha Walton filed suit against Robert Wood Johnson and Kindred.1 Kindred filed Preliminary Objections seeking to have the matter removed to arbitration, pursuant to the ADR Agreement. Following discovery on the issue of authority to execute the ADR Agreement, the parties submitted briefs in support of their respective positions. The trial court overruled Kindred’s Preliminary Objections and this timely appeal followed.2

The question at issue here is whether the ADR Agreement is enforceable.3 The answer is dependent upon whether Nancy Walton was acting as Lakeysha Walton’s agent when she signed the document.

An agency relationship may be created by any of the following: (1) express authority, (2) implied authority, (8) apparent authority, and/or (4) authority by estoppel. Express authority exists where the principal deliberately and specifically grants authority to the agent as to certain matters. See Bolus v. United Penn Bank, 363 Pa.Super. 247, 525 A.2d 1215 (1987). Implied authority exists in situations where the agent’s actions are “proper, usual and necessary” to carry out express agency. See Passarelli v. Shields, 191 Pa.Super. 194, 156 A.2d 343 (1959). Apparent agency exists where the principal, by word or conduct, causes people with whom the alleged agent deals to believe that the principal has granted the agent authority to act. See Turner Hydraulics v. Susquehanna Construction Co., 414 Pa.Super. 130, 606 A.2d 532 (1992). Authority by estoppel occurs when the principal fails to take reasonable steps to disavow the third party of their belief that the purported agent was authorized to act on behalf of the principal. See Turnway Corp. v. Soffer, 461 Pa. 447, 336 A.2d 871 (1975).

Lakeysha Walton was comatose when she was transferred to Kindred. As such, it is clear that she could not authorize her own treatment nor could she grant authority to anyone else. However, the evidence of record shows that an individual, Joanne [787]*787Baker, signed the original admission agreement. See Deposition of Nancy Walton,

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Cite This Page — Counsel Stack

Bluebook (online)
66 A.3d 782, 2013 Pa. Super. 108, 2013 WL 1883251, 2013 Pa. Super. LEXIS 717, Counsel Stack Legal Research, https://law.counselstack.com/opinion/walton-v-johnson-pasuperct-2013.