Northport Health Services of Arkansas, LLC v. Posey, No. 18-2459 (8th Cir. 2019)
Annotate this Case
The Eighth Circuit reversed the district court's grant of summary judgment for Northport in a wrongful death action brought by plaintiff, Mark, as the representative of the estate of his deceased father. Another son, Matt, signed the admission agreement, which included an arbitration agreement, at the residential rehabilitation center owned by Northport. Northport sought to compel arbitration and the district court granted the motion. Mark appealed, asserting that the district court misused the third-party beneficiary theory when no underlying agreement was present between the Poseys and Northport.
Arkansas courts have repeatedly declined to find that individuals like Matt—relatives without power-of-attorney or other legal authority who admit a family member to a nursing home—possess valid authority to bind their relatives to arbitration under a third-party beneficiary theory. In this case, because Matt was undisputedly not his father's legal guardian or attorney-in-fact, he lacked the capacity to sign the contract as his father's representative. Accordingly, the court reversed the order compelling arbitration and remanded for further proceedings.
Court Description: Shepherd, Author, with Benton and Melloy, Circuit Judges] Civil case - Wrongful death. The district court held the nursing home contract defendant signed for his father compelled arbitration of his wrongful death claims against Northport; there was no valid contract between the parties because under Arkansas law defendant did not sign the contract in his individual contract, and as he was undisputedly not his father's legal guardian or attorney-in-fact, he lacked the capacity to sign as his father's representative; the order compelling arbitration is reversed and the matter is remanded for further proceedings.
Some case metadata and case summaries were written with the help of AI, which can produce inaccuracies. You should read the full case before relying on it for legal research purposes.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.