Like other industries providing services to vulnerable populations, nursing homes are no strangers to lawsuits. However, simply because nursing homes and similar long-term care businesses often find themselves in courts does not mean they like to be there. Indeed, nursing homes routinely have their incoming residents sign arbitration agreements providing that potential claims against the nursing home be resolved through informal arbitration rather than formal litigation. Given that arbitration panels are often believed to be biased, the enforceability of such arbitration provisions is frequently at issue. For instance, in a recent decision, Sovereign Healthcare of Tampa, LLC v. Estate of Schmitt, Florida’s Second District Court of Appeals addressed whether a nursing home resident’s wife had the authority to sign an arbitration agreement on his behalf.
Sovereign Healthcare arose from incidents of alleged negligence at Bayshore Pointe Nursing & Rehabilitation Center in Tampa, Florida. The plaintiff in this case was the widow of a resident who spent two separate stints at Bayshore prior to his death. Before each of the deceased’s residencies at Bayshore, a “Resident Admission and Financial Agreement” was executed. The agreements included identical arbitration clauses that provided for the arbitration of disputes related to the deceased man’s residency at Bayshore. After the widow of the deceased man filed suit on behalf of his estate, Bayshore made a motion to compel arbitration, arguing that the arbitration provision in the first residence agreement required that the claims asserted be arbitrated. The trial court denied the motion, and Bayshore appealed the adverse ruling.