Moffett v. Life Care Centers of America

• Decision Date: 16 November 2009
• Docket Number: No. 08SC510.,08SC510.
• Citation: 219 P.3d 1068
• Parties: James MOFFETT and Rozan O'Brien, Petitioners v. LIFE CARE CENTERS OF AMERICA, a Tennessee corporation d/b/a Briarwood Health Care Center, Respondent.
• Court: Colorado Supreme Court

219 P.3d 1068

James MOFFETT and Rozan O'Brien, Petitioners v. LIFE CARE CENTERS OF AMERICA, a Tennessee corporation d/b/a Briarwood Health Care Center, Respondent.

No. 08SC510.

Supreme Court of Colorado, En Banc.

November 16, 2009.

Law Office of John Robert Holland, P.C., John Robert Holland, Anna C. Holland-Edwards, Erica Tick Grossman, Denver, CO, Attorneys for Petitioners.

Kennedy Childs & Fogg, P.C., Ronald H. Nemirow, Barbara H. Glogiewicz, Miles Buckingham, Denver, CO, Attorneys for Respondents.

Leventhal, Brown & Puga, P.C., Benjamin Sachs, Denver, CO, Attorneys for Amici Curiae AARP and NCCNHR: The National Consumer Voice for Quality Long-Term Care.

Kutak Rock LLP, Mark L. Sabey, Denver, CO, Attorneys for Amicus Curiae Colorado Hospital Association.

Miles & Peters, PC, Fred Miles, Nancy P. Tisdall, Denver, CO, Attorneys for Amici Curiae American Health Care Association, National Center for Assisted Living, Colorado Health Care Association and The Alliance for Quality Nursing Home Care.

The Viorst Law Offices, P.C., Anthony Viorst, Denver, CO, Attorneys for Amicus Curiae Colorado Trial Lawyers Association.

Hall & Evans, L.L.C., Alan Epstein, Beth A. Dickens, Denver, CO, Attorneys for Amicus Curiae Colorado Defense Lawyers Association.

Justice HOBBS delivered the Opinion of the Court.

We granted certiorari in Moffett v. Life Care Centers of America, 187 P.3d 1140 (Colo.App.2008), to determine whether a person possessing a power of attorney ("POA") may lawfully sign an arbitration agreement on behalf of an incapacitated patient under the arbitration provision of the Health Care Availability Act ("the HCAA"), section 13-64-403, C.R.S. (2009).¹ A person holding a POA is also called an "attorney-in-fact." We use these terms interchangeably throughout this opinion.

The petitioners, James Moffett and his sister, Rozan O'Brien ("the Moffetts"), filed a wrongful death action for the death of their mother, Dorothy Moffett, against Briarwood Life Care Centers ("Briarwood"), a nursing home facility. Briarwood filed a motion to compel arbitration pursuant to an arbitration agreement ("the Agreement") signed by James Moffett, who possessed a POA and a medical durable power of attorney for his mother. The district court denied the motion to compel arbitration, and Briarwood appealed. The court of appeals reversed the trial court. The Moffetts appeal that decision. We affirm the judgment.

In this case, the incapacitated patient executed a POA empowering her son, James Moffett, to act as her attorney-in-fact. The son signed the Agreement in connection with his mother's admission to the nursing home. Nevertheless, the Moffetts contend that the HCAA prohibited the son from entering into the Agreement because only the patient can sign an arbitration agreement and must do so before becoming incapacitated. In the alternative, they contend that the Agreement is not valid because the nursing home unlawfully conditioned Dorothy Moffett's admission on her son signing the Agreement.

We hold that the HCAA does not prohibit a person possessing a POA from entering into an arbitration agreement on behalf of a person who became incapacitated after executing the POA. We also hold that the trial court must resolve contested factual issues bearing on the validity of the Agreement. In light of our holdings, we need not and do not reach the issue of whether a person holding a medical durable power of attorney is authorized to sign an arbitration agreement on behalf of an incapacitated patient.

I.

Suffering from Alzheimer's disease, Dorothy Moffett was admitted to Briarwood on February 15, 2004. Two days later, her son, James Moffett, signed forms to admit her, including the Agreement.² Moffett admits that he possessed a POA and a medical durable power of attorney for his mother at the time he signed the forms on her behalf. The Agreement, entitled "Voluntary Agreement for Arbitration," provides for arbitration of

any claim, including, but not limited to, any claim that medical services ... were improperly, negligently, or incompetently rendered or omitted ... [and] all disputes ... arising out of or in any way related or connected to the Resident's stay and care provided at the Facility....

The Agreement contains a comprehensive explanation of arbitration as a method of dispute resolution, and makes explicit that "[t]he execution of [the Agreement] is voluntary and is not a precondition to receiving medical treatment at or for admission to [Briarwood]." The Agreement is binding on all disputes arising out of the patient's stay and care provided by Briarwood, including disputes brought by successors and assigns of the parties. The Agreement was not embedded within the admission agreement and was presented to James Moffett separately from the rest of the paperwork. The last section of the Agreement states in bold-faced, capitalized text:

YOU HAVE THE RIGHT TO SEEK LEGAL COUNSEL AND YOU HAVE THE RIGHT TO RESCIND THIS AGREEMENT WITHIN NINETY DAYS FROM THE DATE OF SIGNATURE BY BOTH PARTIES....

NO HEALTH CARE PROVIDER SHALL WITHHOLD THE PROVISION OF EMERGENCY MEDICAL SERVICES TO ANY PERSON BECAUSE OF THAT PERSON'S FAILURE OR REFUSAL TO SIGN AN AGREEMENT CONTAINING A PROVISION FOR BINDING ARBITRATION OF ANY DISPUTE ARISING AS TO PROFESSIONAL NEGLIGENCE OF THE PROVIDER.

NO HEALTH CARE PROVIDER SHALL REFUSE TO PROVIDE MEDICAL SERVICES TO ANY PATIENT SOLELY BECAUSE SUCH PATIENT REFUSED TO SIGN SUCH AN AGREEMENT OR EXERCISED THE NINETY-DAY RIGHT OF RESCISSION.

Despite this right to rescind the Agreement on behalf of his mother within ninety days of signing it, James Moffett did not rescind or attempt to rescind it at any time prior to the filing of this lawsuit.

Dorothy Moffett was admitted to a hospital on October 13, 2004; she died two days later. The Moffetts filed a complaint for wrongful death against Briarwood in Denver District Court. Briarwood moved to stay those proceedings and compel arbitration based upon the Agreement James Moffett signed. The trial court denied Briarwood's motion, holding that Briarwood violated the HCAA by (1) tendering the Agreement to James Moffett when Briarwood knew that Dorothy Moffett lacked rational capacity to sign the Agreement; (2) telling James Moffett that Briarwood would not provide care to Dorothy Moffett unless James Moffett signed the Agreement; and (3) not directly giving Dorothy Moffett a copy of the Agreement.³

The court of appeals reversed the trial court, holding that (1) a person holding a POA for an incapacitated patient may lawfully sign an arbitration agreement on behalf of the principal and (2) a person holding a medical durable power of attorney for an incapacitated patient may lawfully sign an arbitration agreement on behalf of the principal, because the decision to arbitrate in that context is a "medical treatment decision." The court of appeals ordered the trial court to determine whether the POA or medical durable power of attorney contained any restrictions that would have prevented James Moffett from validly executing the Agreement. The court of appeals also ordered the trial court to resolve contested issues of fact bearing on the validity of the Agreement.⁴

The Moffetts allege that the court of appeals erred when it held that a person possessing a POA has the authority to execute a nursing home arbitration agreement on behalf of his or her incapacitated principal. They argue that the granting of such authority violates the HCAA arbitration provision, section 13-64-403. The Moffetts also contend that the court of appeals impermissibly remanded the case to the trial court for additional fact finding on the issue of whether Briarwood violated subsection 13-64-403(7) of the HCAA by conditioning Dorothy Moffett's medical care on James Moffett's signing the Agreement. We disagree and affirm the judgment of the court of appeals. We need not and do not reach the issue of whether a person holding a medical durable power of attorney is authorized to sign an arbitration agreement on behalf of an incapacitated patient.

II.

We hold that the HCAA does not prohibit a person possessing a POA from entering into an arbitration agreement on behalf of a person who became incapacitated after executing the POA. We also hold that the trial court must resolve contested factual issues bearing on the validity of the Agreement.

A. Standard of Review

Whether an enforceable agreement to arbitrate exists in a case is a question of law we review de novo. Lane v. Urgitus, 145 P.3d 672, 677 (Colo.2006); Allen v. Pacheco, 71 P.3d 375, 378 (Colo.2003); Image Software, Inc. v. Reynolds & Reynolds Co., 459 F.3d 1044, 1055 (10th Cir.2006).

We also review issues of statutory construction de novo. Flood v. Mercantile Adjustment Bureau, LLC, 176 P.3d 769, 772 (Colo.2008). Our primary task is to ascertain and effectuate the intent of the General Assembly. People v. Yascavage, 101 P.3d 1090, 1093 (Colo.2004). We strive to reconcile conflicts between two statutes that regulate the same conduct. Showpiece Homes Corp. v. Assurance Co. of Am., 38 P.3d 47, 53 (Colo. 2001); see also § 2-4-205, C.R.S. (2009). We read applicable statutory provisions as a whole in order to give consistent, harmonious, and sensible effect to all their parts. City of Lakewood v. Mavromatis, 817 P.2d 90, 96 (Colo.1991).

We begin with the plain language of the statute to ascertain the General Assembly's intent. In re Marriage of Ikeler, 161 P.3d 663, 666 (Colo.2007). If the plain language is ambiguous, we may look to other factors, such as the goal of the statutory design, in determining legislative intent. Id. at 666, 669; § 2-4-203, C.R.S. (2009). When statutory provisions concern the same subject matter or are part of a common design, we must read them together to give full effect to each. Martinez v. People, 69 P.3d 1029, 1033 (Colo.2003); In re People ex rel. M.K.A., 182 Colo. 172, 175, 511 P.2d 477, 479 (1973).

We...