Friday, November 16, 2007

Tennessee Supreme Court Holds Attorney-In-Fact Could Bind Resident To Arbitration Agreement

[Source: Health Lawyers Weekly, November 16, 2007 - AHLA]

A durable power of attorney for healthcare authorizes the attorney-in-fact to enter into an arbitration agreement on behalf of a resident as part of a nursing home’s admissions process, the Tennessee Supreme Court held November 8.

Thus, the appeals court upheld the pre-dispute arbitration agreement in so far as plaintiff argued the attorney-in-fact could not bind the principal and that the agreement was otherwise unenforceable or violated public policy.

The high court did remand for further proceedings, however, on whether the arbitration agreement was an unconscionable contract of adhesion. Continue Reading

Owens v. National Health Corp., No. M2005-01272-SC-R11-CV (Tenn. Nov. 8, 2007).

[Corrected Opinion]