Arbitration, Enforceability: Fourth District, Div. 3 Holds That Temporary Conservators Could Not Be Held To Arbitrate

August 26, 2020 · Arbitration: Enforceability

Nursing Homes And Senior Living Facilities Continue To Generate Enforcement Of Arbitration Cases.

    The Court of Appeal affirms denial of a motion to compel arbitration in Diane Holley v. Silverado Senior Living Management, Inc., et al, No. G058576 (4/3  8/7/20) (Moore, Bedsworth, Aronson). 

    Holley brought a suit individually, and as successor in interest against defendants operating a senior living facility for elder abuse and neglect, negligence, and wrongful death. Defendants sought, unsuccessfully, to compel arbitration, even though Holley, as a  temporary conservator, had signed an arbitration agreement on behalf of Elizabeth Holley. Or did she sign it on behalf of Elizabeth?

    The Court of Appeal explains that a temporary conservator could not make long-term decisions on behalf of Elizabeth, nor had there been an adjudication of Elizabeth's mental capacity. Nor was there any evidence that Diane Holley intended to be individually bound by the arbitration agreement. So Diane Holley's individual claims, and claims as a successor can be litigated.

    Comment: The outcome could have been different if the plaintiff had (a) been a permanent conservator; or (b) Elizabeth Holley had been adjudicated to be mentally incompetent.

 

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