Koricic v. Beverly Enterprises Nebraska

In 1958, Manda Baker immigrated to the United States from Croatia. Baker had limited English skills. In 1966, Frank Koricic (plaintiff), Baker’s son, also immigrated to the United States, and for the next 40 years he lived with Baker. In 1998, Baker’s health began declining, and when she needed to go to the hospital, Baker authorized Koricic to sign medical documents for her. Koricic would discuss the documents with Baker in advance and signed them only with her permission. In November 2005, Koricic took Baker to Beverly Hallmark (defendant), a nursing home to which Baker wished to be admitted. At all relevant times, Baker was of sound mind. While Baker waited in a room, Koricic accompanied a Beverly Hallmark employee into an office and signed admission documents on Baker’s behalf. Koricic and Baker had discussed in advance that Koricic was authorized to sign the mandatory paperwork for admission. One of the documents that Koricic signed in the office was an arbitration agreement that Beverly Hallmark presented to all potential residents. The agreement was optional and expressly stated that it was “not a condition of admission.” Koricic did not subsequently show any of the paperwork to Baker or discuss it with her. In 2007, Baker died. Koricic, as Baker’s relative and trustee of Baker’s estate, sued Beverly Hallmark and its related entities (defendants), alleging negligence and other claims with regard to the nursing home’s treatment of Baker. Beverly Hallmark moved to compel arbitration, which the trial court granted. Koricic appealed, arguing that he had no actual or apparent authority to sign the arbitration agreement on Baker’s behalf, rendering the arbitration agreement unenforceable.