Late last year, a state court of appeals issued a written opinion in a nursing home negligence case brought by the estate of the deceased resident. The case presented the court with the opportunity to discuss when an arbitration agreement is valid if it is signed by someone other than the resident. Ultimately, the court held that the arbitration agreement signed by the resident’s son was invalid because the power of attorney document the resident had executed did not specify that the resident’s loved one had control over her legal affairs.
The Facts of the Case
The plaintiff in this case was the estate of the deceased nursing home resident. Prior to the resident’s admission into the nursing home, she had executed a power of attorney in favor of her son, who was helping her obtain the long-term care that she needed. In 2005, the resident was admitted into the nursing home after her son signed the pre-admission contract. Several years later, the nursing home presented the resident with a voluntary arbitration agreement, which her son also signed.
In 2012, the resident died, allegedly due to injuries she sustained while at the nursing home. The resident’s estate brought a wrongful death lawsuit against the nursing home. In response, the nursing home asked the court to dismiss the case, citing the voluntary arbitration agreement that the resident’s son had previously signed. The trial court rejected the defendant’s request to arbitrate, claiming that the power of attorney document did not give the resident’s son the right to agree to arbitration, and therefore, the arbitration agreement was invalid. The nursing home appealed.