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A Florida district court of appeals determined that a son's power of attorney over his mother did not grant him the legal authority to enter into an agreement to arbitrate with the nursing home of which she was a resident.
In In re Estate of McKibbin, No. 2D06-5452, 2008 WL 161322 (Fla. Dist. Ct. App. Jan. 18, 2008), Larry McKibbin, as personal representative of the Estate of Loyette McKibbin brought suit against Alterra Health Care Corporation, an assisted living facility of which Ms. McKibbin was a resident.
In response, Alterra filed a motion to compel arbitration based on a residency agreement that contained an arbitration agreement. The lower court granted Alterra's motion to compel arbitration.
On appeal, the Estate argued that it was not bound to arbitrate because Ms. McKibbin did not sign the residency agreement, and that her son, who signed the residency agreement, did not have the authority to bind Ms. McKibbin to arbitrate.
The Court determined that the Estate was not bound to arbitrate. At the time the residency agreement was executed, Ms. McKibbin was not incapacitated. Further, there was no evidence that she was mentally or physically unable to make decisions for herself.
Larry presented a durable power of attorney to Alterra to demonstrate that he had the legal authority to enter into the residency agreement on behalf of his mother. However, nothing in the power of attorney gave Larry the legal authority to enter an agreement to arbitrate on behalf of his mother.
The Court noted that powers of attorney are strictly construed to grant only the power specified. Since there was no other basis upon which to bind Ms. McKibbin to the arbitration agreement, the Court determined that the Estate was not bound to arbitrate.
Accordingly, the Court reversed the lower court's order granting the motion to compel arbitration.
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