Earlier this month, an appellate court in California issued a written opinion in a personal injury case presenting an interesting issue that often arises in Maryland nursing home abuse and neglect cases. The case required the court to determine if an arbitration agreement was valid when it was signed by a resident’s family member who possessed a valid power of attorney at the time the document was executed. Ultimately, the court concluded that the decision of whether to admit someone to a nursing home constitutes a “health care decision,” which was not a right conferred by the power of attorney document.
The plaintiff was the surviving loved one of a woman who died shortly after leaving the care of the defendant nursing home. Prior to the resident’s admission, the resident had executed two relevant documents. The first, executed in 2006, was a health-care power of attorney executed in favor of the plaintiff. The second, executed in 2010, was a personal-care power of attorney executed in favor of the plaintiff as well as the resident’s sister.
After the second document was executed, the resident’s sister placed the resident in the defendant nursing home. Prior to admitting the resident, the resident’s sister executed a pre-admission contract that contained an arbitration clause whereby both parties agreed to submit any claim that arose between the two to binding arbitration rather than the court system.