Earlier this month, the United States Supreme Court issued a written opinion in a case brought by the surviving family members of two nursing home residents who died while in the care of the defendant nursing home. The case required the court to determine whether a state law was valid if it permitted a loved one of a nursing home resident to enter into binding arbitration only when they possess a power of attorney document that specifically mentions “access to the courts” as a conferred right. Ultimately, the court determined that the state law violated the Federal Arbitration Act.
The plaintiffs were the surviving family members of two loved ones who lived in the defendant nursing home prior to their deaths. Prior to the residents’ admission to the facility, the plaintiffs completed the necessary pre-admission paperwork for each of the residents. One clause in the document stated that “[a]ny and all claims or controversies arising out of or in any way relating to . . . the Resident’s stay at the Facility” would be resolved through binding arbitration. At the time the paperwork was completed, the plaintiffs had valid documents indicating that they possessed powers of attorney for their loved ones that permitted they “dispose of all matters” related to their loved ones.
In the next year, both residents died while in the care of the nursing home. The nursing home asked the court to dismiss the case and require the plaintiffs to submit their cases through the arbitration process, as indicated in the pre-admission contracts. The state court rejected the nursing home’s argument, finding that a person’s access to the court system is a “sacred” right, and it can only be waived by an explicit statement in the power of attorney document.