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Monday, April 22, 2024

New SCOTN Case: Trial Court's Decision Denying Arbitration in a Nursing Home Case Reversed on Appeal Because the Attorney-in-Fact Was Authorized to Sign Arbitration Agreement

The Tennessee Supreme Court has released its opinion in Williams v. Smyrna Residential, LLC, No. M2021-00927-SC-R11-CV (Tenn. Feb. 16, 2024). The syllabus from the majority opinion reads: 

Granville Williams, Jr., died while residing at an assisted-living facility. The central question in this appeal is whether his son’s ensuing wrongful-death action against the facility must be arbitrated. To answer that question, we must resolve two subsidiary issues—first, whether the attorney-in-fact who signed the arbitration agreement as Williams’s representative had authority to do so and, second, whether Williams’s son and other wrongful-death beneficiaries who were not parties to the arbitration agreement nevertheless are bound by it. We hold that signing an optional arbitration agreement—that is, one that is not a condition of admission to a health care facility—is not a “health care decision” within the meaning of the Durable Power of Attorney for Health Care Act. The durable power of attorney that gave Williams’s attorney-in-fact authority to act for him in “all claims and litigation matters” thus provided authority to enter the optional arbitration agreement even though it did not specifically grant authority to make health care decisions. We further hold that Williams’s son is bound by the arbitration agreement because his wrongful-death claims are derivative of his father’s claims. Because we conclude that the claims in this action are subject to arbitration, we reverse the Court of Appeals’ contrary decision and remand to the trial court.

Here is a link to that opinion: 

https://www.tncourts.gov/sites/default/files/OpinionsPDFVersion/Majority%20Opinion%20-%20M2021-00927-SC-R11-CV.pdf.

Here is a link to Justice Lee's dissent:

https://www.tncourts.gov/sites/default/files/OpinionsPDFVersion/Separate%20Opinion-%20M2021-00927-SC-R11-CV.pdf.

Here is Chief Justice Kirby's opinion joining Justice Lee's dissent:

https://www.tncourts.gov/sites/default/files/OpinionsPDFVersion/Separate%20Opinion%20%282%29%20-M2021-00927-SC-R11-CV.pdf.

NOTE: This opinion reverses the one from the Tennessee Court of Appeals in this same case that was released on April 8, 2022, which is the subject of my blog post from April 9, 2022, to wit:

http://theduncanlawfirm.blogspot.com/2022/04/trial-courts-denial-of-defendants.html.


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