Background
M.D., a minor, sued Flight Fit N Fun and another defendant for negligence after she was injured at Flight Adventure Park Springfield. Flight moved to compel arbitration based on a participant waiver and arbitration agreement electronically signed for M.D. by Mako Barre, an adult who accompanied her to the park.
The agreement stated that a parent, legal guardian, or person with power of attorney must complete it for participants under 18. Barre represented in the form that she had authority to sign for M.D., but M.D. disputed that Barre was a parent, guardian, or authorized agent. The Fairfax County Circuit Court denied arbitration, reasoning that the minor should not be bound by Barre’s purportedly false representation.
The Court’s Holding
The Court of Appeals held that it had jurisdiction under the Virginia Uniform Arbitration Act to review the interlocutory order denying Flight’s motion to compel arbitration. It also held that Virginia law does not categorically prevent minors from being bound by arbitration agreements; arbitration provisions must be treated like other contracts.
But whether Barre had actual or apparent authority to bind M.D. presented a contract-formation question for the court, not an issue for an arbitrator. Because that issue depended on disputed facts, the circuit court was required to hold an evidentiary hearing. The agreement itself, including Barre’s assertion of authority, did not conclusively establish that M.D.’s parents had manifested authority for Barre to act on M.D.’s behalf. The court reversed and remanded for that factual determination.
Key Takeaways
- Virginia appellate courts may hear an appeal from an order denying a motion to compel arbitration under the VUAA.
- A minor may be bound by an arbitration agreement under the same generally applicable contract principles governing other contracts.
- When an alleged agent’s authority to sign an arbitration agreement is factually disputed, the trial court must conduct an evidentiary hearing before compelling or denying arbitration.
Why It Matters
The decision clarifies that an agency-authority challenge goes to whether an arbitration agreement was formed at all. A party seeking arbitration retains the ultimate burden to prove a valid agreement after the opposing party raises that challenge.
For businesses relying on waivers signed by adults accompanying minors, a signer’s statement that she has authority may be insufficient on its own where the child’s parents dispute that authority.