The Illinois Appellate Court holds that a health care power attorney does not confer authority to consent to arbitration if signing an arbitration agreement is not required for the principal to receive care in a nursing facility. In Parker v. Symphony of Evanston Healthcare (Ill. App. Ct. No. 2021 L 1995, June 5, 2023).
Mae Jefferson executed a health care power of attorney naming her daughter, Kathy Jefferson, as her health care proxy. When Mae Jefferson entered a nursing home known as Symphony of Evanston Healthcare, her daughter signed an arbitration agreement as her representative. Signing the arbitration agreement was not required to receive care, and her daughter later claimed she did not understand what she was signing.
After Mae Jefferson died, the representative of her estate sought to bring several claims against the nursing home, including violations of the Nursing Home Care Act, common law negligence rules, and the Wrongful Death Act. The trial court compelled arbitration of the survival claims and stayed the wrongful death claims. The estate representative appealed.
Although the nursing home contends that the appellate court should review for abuse of discretion, the appellate court reviews the decision de novo since there was no evidentiary hearing and the trial court’s decision was based purely on legal analysis.
On appeal, the court considers whether the arbitration agreement was valid and binding. The court must determine whether the health care power of attorney gave the daughter the authority to bind her mother to arbitration when the arbitration agreement was not required for admittance.
Fiala v. Bickford presents important precedent. In Fiala, the court held that if an arbitration provision is required for admission to a care facility, then it is a health care decision. Since health care agents have the authority to make health care decisions, they can sign arbitration agreements required for admission. When the arbitration provision is optional, the health care agent does not have the power to sign it. If the agent signs it, the action cannot bind the patient.
Applying Fiala, Kathy Jefferson could not bind her mother to the arbitration agreement. The nursing home did not require residents to agree to arbitration to receive care. The record shows that 85 percent of residents refused to sign the arbitration agreement.
Since Kathy Jefferson lacked the authority to sign an arbitration agreement binding her mother, the appellate court reverses and remands the case.
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