Duran v. Majorie House McMinnville, LLC, 335 Or App 501 (2024))

“[U]nder the plain text and context of the rules, there is no independent legal authority for a designated representative to enter into an arbitration agreement on an individual’s behalf. ”

Duran v. Majorie House McMinnville, LLC, 335 Or App 501 (2024)

Plaintiff filed suit for negligence & wrongful death, after signing a binding arbitration agreement and an admission agreement for Defendant resident care facility. Plaintiff claimed no authority to enter into a contract on the decedent's behalf. Defendant argued that Plaintiff was a designated representative under OAR, therefore arbitration was compelled. The trial court found that the Plaintiff had authority to enter into the agreement, but that it was void. Defendant appealed. A designated representative is a person who is the resident’s legal representative, or is otherwise authorized to fund the resident’s care. The court found that the text of the rules does not necessarily authorize a designated representative to bind a resident to an arbitration contract if they are not a legal representative. The court held the arbitration agreement was invalid because the Plaintiff was not a legal representative.