Augusta Georgia Medical Malpractice Lawyer - Med Mal Case Involving Brain Injuries

LIFE CARE CENTERS OF AMERICA d/b/a LIFE CARE CENTER OF GWINNETT v. SMITH

A09A0548, A09A0549.

GA Court of Appeals of Georgia

June 18, 2009

ANDREWS, Presiding Judge.

We granted Life Care Center of Gwinnett's (Life Care)'s application for interlocutory review of the trial court's order denying Life Care's motion to stay proceedings, dismiss the complaint, and compel arbitration of Angela Smith's claims for the wrongful death of her mother Gerith Petereit. Life Care stated that when Smith signed forms for her mother's admission to Life Care under the authority of a durable health care power of attorney given to her by Petereit, she also signed an agreement to arbitrate any dispute that might arise between the parties; therefore, the suit should be dismissed and the court should compel arbitration of the claims. The trial court disagreed, holding that under the language of the health care power of attorney given to her, Smith did not have the authority to bind her mother to arbitration. We agree and affirm.

This case arose after Petereit was admitted to Life Care Center of Gwinnett in August 2005 after suffering a stroke. She had been at Life Care less than a month when she suffered a blow to the head and died from the resulting brain damage. Smith then brought this action against Life Care and other individuals in connection with her mother's death.

Life Care moved to stay proceedings, dismiss the action and compel arbitration based on an arbitration agreement Smith signed at the time her mother was admitted to Life Care. This "Voluntary Agreement for Arbitration" provided for waiver of a jury trial and binding arbitration for "all disputes" arising between the resident and Life Care.

Smith signed the admission documents, including the agreement to arbitrate, under a Durable Power of Attorney for Health Care appointing Smith as Petereit's agent "to make any and all decisions for me concerning my personal care, medical treatment, hospitalization, and health care and to require, withhold, or withdraw any type of medical treatment or procedure, even though my death may ensue." The power of attorney goes on to discuss the issue of life-sustaining or death-delaying treatment in greater detail. For example: "The above grant of power is intended to be as broad as possible so that your agent will have authority to make any decision you could make to obtain or terminate any type of health care, including withdrawal of nourishment[,] any fluids and other life-sustaining or death-delaying measures, if your agent believes such action would be consistent with your intent and desires." The power of attorney also states: "The purpose of this power of attorney is to give the person you designate (your agent) broad powers to make health care decisions for you, including power to require, consent to, or withdraw any type of personal care or medical treatment for any physical or mental condition and to admit you to or discharge you from any hospital, home, or other institution; but not including psychosurgery, sterilization, or involuntary hospitalization or treatment covered by Title 37 of the Official Code of Georgia Annotated."

In response to Life Care's motion to compel arbitration, Smith argued that the agreement to arbitrate was not enforceable because she did not have a general power of attorney for Petereit and had not been appointed conservator or guardian for Petereit. Smith pointed out that the Georgia Arbitration Act expressly excludes claims for medical malpractice, personal injury and wrongful death. OCGA § 9-9-2(c) (1) and (10). Smith also argued that the agreement was unenforceable because the American Arbitration Association was named as the arbitrator in the agreement and the AAA had already stated that it would not arbitrate the matter because it was against its policy to arbitrate these matters without a post-dispute agreement to arbitrate.

In denying Life Care's motion to compel arbitration, the trial court held that the health care power of attorney did not give Smith the power to enter such an extensive arbitration agreement. The court concluded that because Smith did not have a general power of attorney and had not been appointed as a conservator or guardian, and because the power granted gave her only the limited authority to make decisions concerning Petereit's " personal care, medical treatment, hospitalization, and health care and to require, withhold, or withdraw any type of medical treatment," then Smith's authority was limited to decisions related to health care and not decisions related to the handling of potential contractual or negligence claims that might accrue.

(PART 1)

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