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Nursing Home Arbitration Clause does "not bind" plantiff who was not a party to the agreement

Monschke v. Timber Ridge Assisted Living, LLC

Filed January 29, 2016, First District, Div. One Cite as A144289

Plaintiff signed a residency agreement containing an arbitration clause as her mother’s agent under a power of attorney. After her mother died, plaintiff sued the care facility for wrongful death and elder abuse in her capacity as personal representative. The trial court denied defendant’s petition to compel arbitration because plaintiff was not a party to the residency agreement.

The appellate court affirmed. As personal representative, plaintiff sued on behalf of decedent's heirs, not the decedent. Although the arbitration clause in the agreement purported to bind "all parties" and "heirs, representatives, administrators, successors and assigns", only a party to an arbitration agreement may be bound by it. Plaintiff signed the residency agreement under decedent’s power of attorney, not in plaintiff's personal capacity: the only parties to the residency agreement were the decedent and the defendant.

Source: Calbar.org - Trust and Estates

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