Harrod v. Country Oaks Partners, LLC (2024) 15 Cal.5th 939
In a recent landmark case, a resident of a skilled nursing facility initiated legal action against the facility and its management. The lawsuit involved multiple claims, including requests for declaratory relief, accusations of elder abuse and neglect, negligence, and violations of the Residents’ Bill of Rights. The nursing facility responded by filing a petition to compel arbitration based on an agreement signed by the resident’s health care agent, who also happened to be the resident’s nephew.
The case was initially heard by the Superior Court in Los Angeles County (Case No. 20STCV26536, Judge Monica Bachner presiding), which denied the petition to compel arbitration. The facility then appealed the decision. The Court of Appeal upheld the lower court’s ruling (82 Cal.App.5th 365, 297 Cal.Rptr.3d 90), leading the facility to take the case to the Supreme Court.
In its review, the Supreme Court, with Justice Jenkins delivering the opinion, held that under the power of attorney, the authority to sign the arbitration agreement did not fall within the scope of making “health care decisions.” This decision effectively disapproves previous rulings in similar cases, specifically Garrison v. Superior Court and Hogan v. Country Villa Health Services, thereby setting a new precedent.
The Supreme Court’s affirmation of the lower court’s ruling underscores the limitations of a health care agent’s authority in the context of arbitration agreements, significantly impacting how such agreements are handled in the future.