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The Missouri Court of Appeals held that a power of attorney must be executed before the attorney-in-fact can sign an arbitration agreement on the principal’s behalf.
In Tallmadge v. Beverly Enterprises Missouri, Inc., No. ED 87981, 2006 WL 2728619 (Mo. Ct. App. Sept. 26, 2006), Carolyn Tallmadge was admitted to a care facility run by Beverly. As part of the admission process, Carolyn’s brother, James, signed an arbitration agreement on her behalf. A few months later, Beverly signed a durable power of attorney appointing James as her attorney-in-fact.
When Carolyn sued Beverly for negligence, Beverly moved to compel arbitration. The trial court granted the motion. On appeal, the Court held that the power of attorney did not give James authority to sign the arbitration agreement on Carolyn’s behalf because the power of attorney was executed after the arbitration agreement was signed.
The Court acknowledged that “there may be other grounds of authority to support James’s execution of the arbitration agreement on behalf of Carolyn.” However, the record was insufficient to consider those grounds because the parties and the trial court were focused on the power of attorney as the source of James’ authority. Accordingly, the Court remanded the case.
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