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Legal News Disputes Over Nursing Home Arbitration Agreements Flourish in PennsylvaniaIn three recent Superior Court cases, binding arbitration agreements between nursing home facilities and their residents have been under scrutiny. In Bair v. Manor Care of On appeal to the Superior Court, Manor Care argued that the lack of a signature by a facility representative does not render the arbitration agreement unenforceable. Ms. Bair argued that the parties did not agree on the material and necessary details of their bargain as there were blanks on the agreement that were intended to be filled in with the parties names and it was undated. Further, the fact that there was a line for the facility representative to sign and it was blank indicated that there was no mutual assent. The Superior Court agreed with the trial court and found that the arbitration agreement lacked essential terms such as the names of the contracting parties, the date of the agreement, and a brochure that was expressly made part of the agreement. By failing to sign the agreement, Manor Care did not consent to arbitrate any claims between it and Ms. Bair. Finally, the Superior Court found that the prior completed arbitration agreement was evidence that Manor Care typically consented to arbitration by completing the blanks and signing the agreement, which it did not do in 2011. In Extendicare appealed to the Superior Court and argued that since the decedent entered into an arbitration agreement, her beneficiaries were limited to claims that the decedent could have pursued during her lifetime and that all claims must be submitted to arbitration. The Superior Court found that a wrongful death action is a separate action belonging to the beneficiaries and therefore, an arbitration agreement not signed by the beneficiaries is not binding upon them. Thus, the wrongful death beneficiaries could pursue their claims in the Court of Common Pleas. Regarding the survival action, Extendicare argued that even if the wrongful death beneficiaries were not bound by the arbitration agreement, the Executors acting in the shoes of the decedent must be bound by the agreement. In ruling on this issue, the Superior Court looked to Pennsylvania Rule of Civil Procedure 213(e) and the wrongful death statute, which provide that wrongful death and survival actions shall be consolidated for trial to avoid a duplicative recovery. Lastly, Extendicare argued that the The Superior Court affirmed the trial court’s ruling denying Extendicare’s preliminary objections to compel arbitration and stated that, “[i]n so holding, we are promoting one of the two primary objectives of arbitration, which is ‘to achieve streamlined proceedings and expeditious results.’”[4] More recently, in Wisler v. Manor Care of On appeal to the Superior Court, Manor Care argued that the decedent’s son was bound by the arbitration agreement as he entered the agreement in his capacity as the power of attorney. The Superior Court found that Manor Care held the burden of proving that an agency relationship existed between the decedent and the decedent’s son, whether it be express or apparent. Moreover, Manor Care had “a duty to ascertain the nature and extent of the written power of attorney.”[6] In failing to establish either express or apparent agency of the decedent’s son at the time of signing the arbitration agreement, the court held that Manor Care could not compel arbitration in accordance with the agreement. In doing so, the Superior Court unequivocally stated that, “our decision should encourage parties seeking an agreement to arbitrate to ascertain the source of an agent’s authority before allowing the agent to sign an arbitration agreement on the principal’s behalf.”[7] It is yet to be determined whether the issue of enforceability of binding arbitration agreements between residents and nursing homes will be heard by the Pennsylvania Supreme Court. Nonetheless, the recent case law has clarified the requirements of a nursing home when executing arbitration agreements with residents or residents’ family members. [1] 108 A.3d 94 ( [2] 113 A.3d 317 ( [3] [4] [5] No. 1226 MDA 2014, 2015 WL 5215963 ( [6] [7] |
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