By Kent Berk on July 22nd, 2025 in Elder Law, guardianship, LITIGATION, Long Term Care, NURSING HOME NEGLIGENCE, PROBATE LITIGATION, Vulnerable Adults
What happens when a loved one is admitted to a nursing home, and a family member signs pages of admission paperwork—including a binding arbitration agreement—without the resident’s explicit consent? Can that agreement be enforced later to block a lawsuit for wrongful death or elder abuse? An unpublished July 2025 decision from the Arizona Court of Appeals answers with a clear “no.”
In Giacone v. Youngtown Health Inc., the court affirmed the trial court’s decision rejecting a nursing home’s motion to compel arbitration, reinforcing that implied authority isn’t enough—especially when the signer lacks the legal right to waive fundamental protections on someone else’s behalf. The ruling underscores the importance of precise legal authority in healthcare admissions and sets important guardrails for families, facilities, and attorneys alike.
Background
After suffering a stroke and respiratory failure, Cheryle Weir (“Mother”) was admitted to Sunview Respiratory & Rehabilitation Center in July 2021. Due to her condition, she was unable to speak but could communicate in writing. Upon admission, Mother was presented with a 40-page admission packet that included a voluntary arbitration agreement.
She texted her daughter, Maritska Giacone, to help with the paperwork. Giacone, who held Mother’s medical power of attorney, signed the documents nearly a week later. Notably, Mother had left a written note on the packet stating, “I want [Giacone] to read first.” There was no indication that Mother instructed Giacone to sign the agreement and the power of attorney didn’t explicitly include that authority.
Following Mother’s death, Giacone filed suit against Sunview and related entities for negligence, wrongful death, and violations under Arizona’s Adult Protective Services Act (APSA).
The Trial Court’s Ruling
The superior court held an evidentiary hearing and concluded that:
- Giacone did not have authority to sign the arbitration agreement on Mother’s behalf.
- Even if she did, the agreement was procedurally unconscionable.
Sunview appealed, arguing that Giacone had implied actual authority based on her power of attorney and conversations with Mother.
The Court of Appeals Decision
The appellate court reviewed the denial of arbitration de novo but deferred to the trial court’s factual findings unless clearly erroneous. It affirmed the lower court’s ruling on the following grounds:
- No Implied Actual Authority: While agency can be implied from conduct, text messages and Mother’s note merely indicated a desire for Giacone to read the documents, not to sign them. Additionally, statements made by Mother to a third party (another daughter) about Giacone signing were not sufficient to establish an agency relationship.
- Power of Attorney Scope: Even if an agency relationship existed, the medical power of attorney did not extend to executing arbitration agreements, aligning with precedent from Heaphy v. Willow Canyon Healthcare, Inc.
Because the appellate court concluded that Giacone lacked authority to bind her mother, it did not need to address the unconscionability issue.
Legal Takeaways
This case serves as a cautionary tale for healthcare facilities:
- Confirm Authority Clearly: Ensure the individual signing an arbitration agreement has clear, documented authority to do so. A power of attorney should expressly cover arbitration if relied upon.
- Avoid Assumptions Based on Family Roles: Simply being a family member or holding a healthcare POA does not automatically authorize signing binding agreements like arbitration clauses.
- Train Staff Thoroughly: Admission staff should be trained to identify and document proper authority before obtaining signatures on legal documents.
Conclusion
The Giacone case reinforces that in Arizona, courts closely scrutinize arbitration agreements signed by agents. Without clear authority, such agreements may not be enforceable—a critical consideration for healthcare providers and legal professionals alike.
For more updates on Arizona elder law, probate, and litigation issues, sign-up for our E-Newsletter and don’t hesitate to contact us if you have any questions.
