Articles Posted in Arbitration Clauses / Contracts

Where decedent’s daughter was her attorney-in-fact but did not have the authority to make health care decisions, an arbitration agreement signed by the daughter in conjunction with decedent’s nursing home admission that specifically stated that it was a health care decision was not enforceable.  

In Buchanan v. Franklin Operating Group, LLC, No. M2022-01017-COA-R9-CV (Tenn. Ct. App. Nov. 19, 2024), plaintiff filed a negligence and wrongful death suit on behalf of her mother, who passed away while at defendant nursing home. In 2015, decedent had executed a power of attorney (“POA”) naming her daughter attorney-in-fact. This POA specifically stated that the daughter did not have the authority to make medical or healthcare decisions.  

In 2018, decedent was admitted to defendant nursing home, and her daughter filled out the paperwork. One document executed by the daughter was an arbitration agreement, which stated that it was not required for admission and also that “the signing of this Agreement, both by conjunction with the corresponding admission and receipt of services, is a health care decision.”  

Apparently, at least in Georgia, Morgan & Morgan requires is clients to sign a fee agreements wherein the client waives the right to a jury trial in the event the client brings a claim against the firm for legal malpractice.   Instead, the client must pursue any claim via arbitration.

Apparently, this is the operative language:

[A]ny and all disputes between me and the Firm arising out of this Agreement, The Firm’s relationship with me or The Firm’s performance of any past, current or future legal services, whether those services are subject of this particular engagement letter or otherwise, will be resolved through a binding arbitration proceeding to be conducted under the auspices of the Commercial Arbitration Rules of the American Arbitration Association in Georgia. The disputes subject to binding arbitration will include without limitation, disputes regarding attorneys’ fees, or costs and those alleging negligence, malpractice, breach of fiduciary duty, fraud or any claim based upon a statute . . . .

Signing an optional arbitration agreement during the process of signing other nursing home admission paperwork is a legal decision, not a healthcare decision, according to the Tennessee Supreme Court.

In Williams v. Smyrna Residential , LLC, 685 S.W.3d 718 (Tenn. 2024), Granville Williams, Jr. (“Williams”) executed a durable power of attorney (“POA”) appointing his daughter, Karen Sams (“Sams”), as his attorney-in-fact. This POA gave Sams authority to act for Williams “in all claims and litigation matters.” The POA did not mention healthcare decisions and no healthcare POA was executed.

In 2020, Sams assisted with Williams’ admission to defendant nursing home. Sams signed the admission paperwork for Williams, which included an arbitration agreement. Although the admission contract stated that it incorporated the terms of the arbitration agreement, the arbitration agreement itself stated that it was optional and “not a condition of admission” to the nursing home. Two months later, Williams died.

A healthcare power of attorney does not give the attorney-in-fact authority to sign an optional arbitration agreement on behalf of a patient.

In Hall v. Quality Center for Rehabilitation and Healing, LLC, No. M2022-01028-COA-R3-CV (Tenn. Ct. App. May 9, 2024), plaintiff’s husband died at a hospital after living at defendant nursing home. Before admission to the nursing home, the husband signed a healthcare power of attorney granting plaintiff/wife the authority to make health care decisions on his behalf. Plaintiff signed the nursing home admission form for her husband, as well as an optional arbitration agreement upon admission.

After the husband’s death, plaintiff filed this wrongful death case. Defendant moved to have the trial court compel arbitration based on the optional arbitration agreement plaintiff signed. The trial court denied the motion to compel arbitration, and the Court of Appeals affirmed.

In a recent HCLA case, the Court of Appeals affirmed the trial court’s denial of defendant’s motion to compel arbitration, agreeing that the arbitration agreement was an unenforceable contract of adhesion.

In Stancil v. Dominion Crossville, LLC, No. E2021-01378-COA-R3-CV (Tenn. Ct. App. July 29, 2022), plaintiff filed an HCLA claim on behalf of her mother (who died while this litigation was pending) based on the care she received at defendant nursing home. At the time of the mother’s admission to the nursing home, she had dementia, so plaintiff signed the admission documents on her behalf as her durable general power of attorney and durable power of attorney for health care.

After plaintiff filed this suit, defendant filed a motion to compel arbitration based on an arbitration provision in the admission contract. Considering the evidence presented, the trial court denied the motion, and the Court of Appeals affirmed this denial.