A Colorado court of appeals holds that an attorney-in-fact may bind a nursing home resident to an arbitration agreement. Moffett v. Life Care Centers of America (Colo. Ct. App., No. 07CA0376, May 15, 2008).
James Moffett admitted his mother to a nursing home. Mr. Moffett had power of attorney over his mother, who had Alzheimer's Disease, and signed the nursing home's admission agreement, including an arbitration provision, on her behalf. After his mother died, Mr. Moffett sued the nursing home for wrongful death, and the nursing home moved to compel arbitration.
Mr. Moffett argued the arbitration provision was invalid because he did not have authority to bind his mother to arbitration under state law, which provides that no arbitration agreement may be submitted to a patient who cannot make a rational decision whether or not to execute the agreement. The trial court agreed and refused to compel arbitration, and the nursing home appealed.
The Colorado Court of Appeals reverses, holding that state law allows an attorney-in-fact to sign an arbitration agreement on behalf of a resident. The court holds that an attorney-in-fact's authority to consent to or refuse medical treatment on the principal's behalf includes the authority to execute an arbitration agreement as part of an admissions contract unless that power is restricted by the principal. The court remands the case to the trial court to determine if Mr. Moffett's power of attorney contained such a restriction.
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