Nebraska Supreme Court Invalidates Nursing Home Arbitration Agreement
In an October 16, 2009 ruling, the Nebraska Supreme Court invalidated an arbitration agreement signed by a nursing home resident's son because he did not have the authority to enter into such an agreement on her behalf.
Manda Baker was admitted to the Beverly Hallmark nursing home in Omaha, Nebraska due to a decline in her health. Her son, Frank Koricic, signed an optional "Resident and Facility Arbitration Agreement" on her behalf, which was presented to him during the admission process.
In 2007, Manda Baker reportedly sustained injuries while a resident of the facility and later died. Her son sued Beverly Enterprises alleging negligence, breach of fiduciary duty, and breach of contract. Beverly Enterprises filed a motion to dismiss the case and compel arbitration citing the document that Frank Koricic signed upon her admission to the facility. The district court ruled that the arbitration agreement was valid and enforceable, but the Supreme Court reversed and remanded the decision citing that while Frank Koricic had the authority to make medical decisions for his mother, he did not have the authority to sign the arbitration agreement. The Nebraska Supreme Court reversed the trial court's order to dismiss Frank Koricic's complaint and remanded the case for further proceedings.
The case involving Manda Baker will continue through the litigation process towards trial and will eventually be presented to a jury.
