Judge Lee W. Tsao, Case Number: 21STCV36120, Date: 2023-08-09 Tentative Ruling

Judge: Lee W. Tsao, Case: 21STCV36120, Date: 2023-08-09 Tentative Ruling

Case Number: 21STCV36120 Hearing Date: August 9, 2023 Dept: C

Covarrubias v. downey post acute, et al.

CASE NO.: 21STCV36120

HEARING: 8/9/23 @ 9:30 AM

Defendants Flagstone Healthcare South, LLC, Rio Hondo Healthcare, Inc., Downey Post Acute, and Jason Wheeler’s motion to compel arbitration and stay proceedings is DENIED.

Moving Party to give NOTICE.

Defendants Flagstone Healthcare South, LLC, Rio Hondo Healthcare, Inc., Downey Post Acute, and Jason Wheeler (Defendants) move to compel arbitration and stay proceedings. The motion is not opposed.

Background

Plaintiff Marisela Covarrubias, individually and as heir and successor in interest to Mary Ester Castaneda, (Plaintiff) filed a complaint against Defendants for the wrongful death of her mother Ms. Castaneda. Plaintiff alleges causes of action for (1) Wrongful Death; (2) Violations of the Elder Abuse Act; and (3) Violations of H&S Code § 1430(b).

Legal Standard

Parties may be compelled to arbitrate a dispute upon the court finding that: (1) there was a valid agreement to arbitrate between the parties; and (2) said agreement covers the controversy or controversies in the parties’ dispute.¿(Omar v. Ralphs Grocery Co. (2004)¿118 Cal.App.4th 955, 961.) A party moving to compel arbitration has the burden of establishing the existence of a valid agreement to arbitrate and the party opposing the petition has the burden of proving, by a preponderance of the evidence, any fact necessary to its defense. (Banner Entertainment, Inc. v. Superior Court¿(1998) 62 Cal.App.4th 348, 356-357.)

Discussion

Here, Defendants have satisfied their burden of proving the existence of an arbitration agreement, because Defendants have produced a copy of the Admission Agreement with the arbitration agreement allegedly signed by Ms. Castaneda’s agent, Plaintiff. (Gates Decl., Ex. B.) Defendants submit evidence that Ms. Rivas witnessed Plaintiff DocuSign the Admission Agreement. (Rivas Decl., ¶¶ 4-6.) Further, Defendants submit Ms. Castaneda’s Power of Attorney naming Plaintiff as her agent. (Rivas Decl., Ex. C.) Thus, Defendants have satisfied their burden in proving the existence of an arbitration agreement.

Thus, the burden shifts to Plaintiff to provide evidence to prove any fact necessary for her defense by a preponderance of the evidence. Plaintiff argues that the Power of Attorney was limited to real property and, thus, Plaintiff lacked the authority as Ms. Castaneda’s agent to sign the Admission Agreement on her behalf. A defendant “seeking to compel arbitration does not meet its burden of proving the existence of an arbitration agreement when it does not present any evidence that the purported principal’s conduct caused the agent or the [defendant] to believe that the agent had the authority to bind the principal.” (Kinder v. Capistrano Beach Care Center, LLC (2023) 91 Cal.App.5th 804, 812.)

In Pagarigan v. Libby Care Center, Inc., (2002) 99 Cal.App.4th 298 the court held that defendants failed to meet their burden of establishing a valid arbitration agreement because they did not provide evidence that plaintiffs had the authority to sign an arbitration contract on behalf of their mother. In Pagarigan, a patient was admitted to a skilled nursing facility in a comatose state and her daughters signed an arbitration agreement on her behalf. (Id. at 300.) The daughters sued for injuries allegedly sustained while at the skilled nursing facility, from which the mother passed, and the defendants moved to compel arbitration. (Ibid.) The appellate court ruled that the daughters did not have the authority to enter into an arbitration agreement on their mother’s behalf because there was no evidence that the mother had signed a durable power of attorney. Here, Defendants have submitted evidence that Ms. Castaneda authorized Plaintiff under a Power of Attorney document. However, the document shows that Ms. Castaneda authorized Plaintiff as her agent for the purposes of real property. Defendants argue that the Power of Attorney evidences Ms. Castaneda’s intent to create an agency relationship for the purpose of entering into arbitration agreements. However, the language of the document is clear that it only grants agency to Plaintiff in the limited purpose with respect to real property. The court declines to interpret the Power of Attorney as evidence that Ms. Castaneda intended to grant authority not granted in the document. Thus, Plaintiff has satisfied her burden of proving any fact necessary to her defense.

Thus, there is no valid arbitration agreement.

Accordingly, Defendants Flagstone Healthcare South, LLC, Rio Hondo Healthcare, Inc., Downey Post Acute, and Jason Wheeler’s motion to compel arbitration and stay proceedings is DENIED.