Court Finds Resident Cannot Be Compelled to Enter Arbitration After Daughter Signs Arbitration Agreement
In a recent case, a court decided that a resident’s estate could not be compelled to enter arbitration, even though the deceased resident’s daughter had signed an arbitration agreement on her behalf. When the resident was admitted to a nursing home, her daughter accepted a health care proxy designation on her mother’s behalf, but the mother never executed a durable power of attorney for her daughter. The daughter then signed the home’s admission agreement, which included an arbitration agreement. The arbitration agreement stated that the arbitration agreement was voluntary and that failing to sign the arbitration agreement would not affect a resident’s ability to stay at the facility.
The nursing home admission agreement defined a legal representative as a person who has authority to act on the resident’s behalf under independent legal authority, such as a guardian or a power of attorney. The mother was not competent at the time the documents were signed. The daughter signed the admission agreement as her mother’s “legal representative” and signed the arbitration agreement under the line designated for a “resident/representative signature.” The daughter signed the documents so that her mother could be admitted to the home.
After the mother died while in the care of the nursing home, the mother’s estate brought a claim against the nursing home, alleging that the home caused the mother injuries that resulted in her death. The nursing home responded by arguing that the case had to be resolved in arbitration, pointing to the arbitration agreement signed by the resident’s daughter. The trial court found that the mother was not competent at the time the admission agreement was signed and that the daughter signed as her legal representative, so the case had to be resolved in arbitration. The mother’s estate appealed.
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