Lovett v. HCR ManorCare, Inc.

242 A.3d 428 (Table)

Hattie D. LOVETT, as Administratrix for the Estate of: Mckinley C. Lovett, Deceased

v.HCR MANORCARE, INC., Wallingford Nursing and Rehabilitation Center-Wallingford, PA, LLC, d/b/a ManorCare Health Services-Wallingford, HCR ManorCare, LLC ManorCare Health Services, Inc. a/k/a ManorCare Health Services, LLC, Manor Care, Inc., HCR IV Healthcare, LLC., HCR III Healthcare, LLC, HCR II Healthcare, LLC, HCR Healthcare, LLC, HCRMC Operations, LLC, HCR ManorCare Operations II, LLC, Heartland Employment Services, LLC, HCR ManorCare Heartland, LLC, HCR Manor Care Services, LLC, Crozer-Keystone Health System, and Prospect CCMC, LLC d/b/a Crozer-Chester Medical Center

Appeal of: HCR ManorCare, Inc., Wallingford Nursing and Rehabilitation Center-Wallingford, PA, LLC, d/b/a ManorCare Health Services-Wallingford, HCR ManorCare, LLC ManorCare Health Services, Inc. a/k/a ManorCare Health Services, LLC, Manor Care, Inc., HCR IV Healthcare, LLC., HCR III Healthcare, LLC, HCR II Healthcare, LLC, HCR Healthcare, LLC, HCRMC Operations, LLC, HCR ManorCare Operations II, LLC, Heartland Employment Services, LLC, HCR ManorCare Heartland, LLC, HCR Manor Care Services, LLC, Crozer-Keystone Health System and Prospect CCMC, LLC d/b/a/ Crozer-Chester Medical Center,

No. 564 EDA 2020

Superior Court of Pennsylvania.

Filed November 18, 2020

MEMORANDUM BY PELLEGRINI, J.:

ManorCare¹ appeals from the trial court order overruling its Preliminary Objections to the Complaint of Hattie D. Lovett, as Administratrix for the Estate of McKinley C. Lovett, Deceased (the Estate). The Preliminary Objections sought to compel arbitration² pursuant to the Voluntary Arbitration Agreement (Agreement) signed by Hattie D. Lovett on behalf of her husband, McKinley C. Lovett. ManorCare argues that the trial court erred when it concluded that Hattie D. Lovett lacked authority to execute the Agreement on her late husband's behalf, and on this basis, declined to enforce its terms.

I.

We take the following factual background and procedural history from our review of the certified record and the trial court's April 7, 2020 opinion.

On February 8, 2016, eighty-two-year-old McKinley C. Lovett presented to Prospect CCMC, LLC. He had sustained a fall and was suffering from pressure ulcers, skin impairments and malnutrition. He was transferred to ManorCare on February 13, 2016. He resided there for twenty-one days until March 4, 2016, when he was discharged to the home he shared with his wife, Hattie D. Lovett, per their wishes. On March 4, 2016, the day of discharge, Hattie D. Lovett signed the admissions paperwork,³ including the Agreement, on her husband's behalf. The Agreement provided, in pertinent part, that signing it was voluntary and not required for admission, that the resident was waiving his right to a jury trial, and all disputes were to be arbitrated. (See Voluntary Arbitration Agreement, 3/04/16, at 1, 3).

Mr. Lovett died on May 23, 2016. On January 17, 2018, the Estate filed a Complaint against ManorCare.⁴ The Complaint alleged negligence, corporate negligence/liability and custodial neglect for failure to properly examine, treat and care for McKinley C. Lovett during his admission at ManorCare from February 13, 2016, through March 4, 2016. ManorCare filed Preliminary Objections on February 9, 2018, which moved, in pertinent part, to compel enforcement of the Agreement. (See Preliminary Objections, 2/09/18, at 7-9). On May 6, 2019, the trial court granted the parties leave to conduct discovery related to the execution of the Agreement and to file supplemental memoranda of law.

As part of this discovery, the parties conducted depositions of Hattie D. Lovett and Nicole Zimmerman, a ManorCare Business Development Specialist.

A.

Nicole Zimmerman, the ManorCare admissions director, was deposed on January 14, 2019. (See N.T. Nicole Zimmerman Deposition, 1/14/19, at 12). Ms. Zimmerman testified that she signed Mr. Lovett in on the date of his admission, February 13, 2016. (See id. at 11). She explained that the facility's policy is that admission paperwork be completed within twenty-four to forty-eight hours after a patient is admitted unless the resident refuses to sign or the responsible party is unavailable. (See id. at 47-49). The admissions coordinator, Lisa Leggett, would typically get the admissions documents signed by the patient or would attempt to locate the responsible party the patient designated, although sometimes Ms. Zimmerman did it. (See id. at 53-54, 70). Ms. Zimmerman was not sure whether she or Ms. Leggett met with Mr. Lovett for the initial attempt to get the admissions paperwork signed, but she testified that both women would have explained, whether it be to Mr. Lovett or any other admitting patient:

You are going to get some admission paperwork signed, permission for ... you to be here, permission for us to take care of you, bill your insurance, there's some additional addendums, there's the arbitration agreement, transportation, and we go through your insurance.

(Id. at 122-23); (see id. at 120). Mr. Lovett would not have been specifically told that, by voluntarily signing the Agreement, he would be waiving his right to a jury trial. (See id. at 123, 136-37). If a resident refused to sign or preferred to have someone else sign on his behalf, Ms. Leggett would document the date and time of this information in the individual's file. (See id. at 50, 113-15).

Ms. Zimmerman could not remember whether she or Ms. Leggett had met with Mr. Lovett when he told one of them that they would have to speak to his wife about signing the admission documents. (See id. at 111-12, 120). At the time of her deposition, Ms. Zimmerman could not remember seeing file notations about Mr. Lovett's refusal to sign, his designation of his wife as his agent or Ms. Leggett's attempts to reach Ms. Lovett. (See id. at 112-14). In fact, despite the Estate's requests, ManorCare did not produce any such documentation relative to Mr. Lovett, so no such evidence is in the record. (See Supplemental Arbitration-Related Request for Production of Documents, 1/15/19, at 1; Follow-Up Correspondence Requesting Response, 7/25/19, at 1).

On the morning of March 4, 2016, the day of his discharge, when Ms. Zimmerman went to Mr. Lovett's room for the first time that day, Mr. Lovett was sitting up in bed, alone in his room. (See Zimmerman Deposition, at 120). She did not ask Mr. Lovett to sign the documents because it was clear that his wife was to do so. Although she repeatedly testified that Mr. Lovett said his wife was to sign all admission documents, she also testified that Ms. Lovett was to sign because, although Mr. Lovett did not have dementia, he was older than his wife was and had multiple medical issues. (See id. at 120, 140-41).

Ms. Zimmerman returned to Mr. Lovett's room later, between 11:00 A.M. and 1:30 P.M., and he was still in the bed and his wife was standing to the side of him. (See id. at 124). Ms. Lovett would have been expecting the documents because Ms. Leggett had arranged for her to be there to sign them. (See id. at 129). Ms. Zimmerman introduced herself to Ms. Lovett and told her she was there to get the admissions paperwork signed. (See id. at 121, 124). She said that she did not ask for Mr. Lovett's consent at that time and he did not give it. (See id. at 122, 127-28). She was not aware of any power of attorney giving Ms. Lovett legal authority to sign the documents. (See id. at 125).

She testified that she pulled up a bedside table to go through the paperwork with Ms. Lovett and that the entire process took approximately ten to fifteen minutes. (See id. at 121, 125, 132). Ms. Zimmerman pointed out to Ms. Lovett where the documents were marked with an "X" for her to sign as the responsible party. (See id. at 132-34). When asked what she told Ms. Lovett about the Agreement, Ms. Zimmerman replied:

What I tell everybody. It's voluntary. You have the right to change your mind within 30 days. You just have to do so in writing, and we will attach it to the arbitration agreement.

It is a faster process in the event of a lawsuit. You would be able to bring an attorney. The attorneys would pick three arbitrators. The lead arbitrator is a retired Pennsylvania judge. The other two arbitrators have to have at least ten years practicing law experience. They will hear both sides. They will come up with a determination in the case.

(Id. at 135).

She did not confirm with Mr. Lovett that his wife had the right to sign the Agreement and waive his right to a jury trial or explain to Ms. Lovett "she was waiving his right to a jury trial by signing it." (Id. at 138); (see id. at 136). Ms. Lovett did not ask any questions about the Agreement or any of the other documents. (See id. at 129, 136). Ms. Zimmerman testified that she could not remember if Mr. Lovett was awake and facing toward them at the time. (See id. at 126, 128-29, 138).

B.

Hattie D. Lovett was deposed on January 29, 2019. At her deposition, she testified that she and McKinley C. Lovett had been married for thirty-four years, during which time Mr. Lovett usually handled the household bills and wrote the checks for their rent. (See N.T. Hattie D. Lovett Deposition, 1/29/19, at 10, 18). Ms. Lovett produced a Wachovia Bank Durable Power of Attorney executed by her husband in her favor dated January 19, 2008. The document authorized certain conduct by her on behalf of her husband involving banking matters at Wachovia Bank only. The document did not authorize any other legal action by Hattie D. Lovett on behalf of her husband for any purpose. (See id. at 19) (testifying that the Power of Attorney authorized Ms. Lovett to "cash checks, withdraw[ ] [and] deposit."); (see also Wachovia Bank, N.A. Durable Power of Attorney, 1/19/08, at 1). She started paying rent and other household bills after Mr. Lovett got sick. (See N.T. Lovett Deposition, at 18).

Regarding her husband's ManorCare stay, Ms. Lovett testified...