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Agent Authority to Enter Arbitration Agreements within Nursing Home Admission Forms – Updated

By Mary Elizabeth Anderson

Problems with arbitration agreements and nursing homes are not new, and whether an agent acting under a power of attorney can bind the principal to an arbitration clause when admitting the principal to a nursing home was the subject of an eReport article in February 2014.

On May 15, 2017, the Supreme Court of the United States (the “Supreme Court”) entered an opinion that reversed in part and vacated in part a Kentucky Supreme Court decision regarding an agent’s authority to enter into nursing home arbitration agreements.

The Kentucky Supreme Court consolidated three cases to determine “whether, based upon the language of the particular power-of-attorney instrument, an arbitration agreement was validly formed between the respective nursing home facility and the resident whose interests were thereby affected.” In two of the cases, Wellner and Clark, the court determined the agreements were not valid because Continue reading