AMFM, LLC v. Shanklin (Signed Opinion)Annotate this Case
A durable power of attorney (DPOA) provided an adult daughter with the authority to enter into an arbitration agreement with a nursing home on her mother’s behalf.
Lena Nelson executed a DPOA that named her son as her attorney-in-fact. The DPOA stated that if her son could not serve as such, Nelson’s daughter, Kimberly Shanklin, should be Nelson’s attorney-in-fact. Nelson was later transferred to Hillcrest Nursing Home. Shanklin signed all of the admission documents, including an arbitration agreement. Approximately one month after leaving the nursing home, Nelson died. Shanklin, on behalf of her mother’s estate, filed this suit against Hillcrest. Hillcrest, in response, filed a motion to dismiss and to compel arbitration. Shanklin argued that the arbitration agreement was unenforceable because she did not have the actual authority to enter into the agreement on Nelson’s behalf because she was the “alternate” DPOA. The circuit court agreed and denied the motion to dismiss and to compel arbitration. The Supreme Court reversed, holding (1) Shanklin had the authority to enter into the arbitration agreement with Hillcrest; and (2) under the plain language of W.Va. Code 39B-1-119(c), Hillcrest was permitted to rely on Shanklin’s authority as Nelson’s DPOA when Shanklin signed the arbitration agreement on Nelson’s behalf.