Kindred Nursing Centers Limited Partnership v. Clark

137 S.Ct. 1421 (2017)

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Nature of the Case

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Facts

Wellner and Clark (Ps) are the wife and daughter, of Joe Wellner and Olive Clark, two now-deceased residents of D's nursing home called the Winchester Centre. Ps each held a power of attorney, designating them as an “attorney-in-fact” and affording each broad authority to manage her family member’s affairs. Ps each held a power of attorney, designating them as an “attorney-in-fact” and affording each broad authority to manage her family member’s affairs. The Wellner authority included the power to “institute legal proceedings” and make “contracts of every nature in relation to both real and personal property.” Clark was given “full power . . . to transact, handle, and dispose of all matters affecting me and/or my estate in any possible way,” including the power to “draw, make, and sign in my name any and all . . . contracts, deeds, or agreements.” Ps each signed an arbitration agreement with D on behalf of her relative. Under the agreement, any and all claims or controversies arising out of or in any way relating to . . . the Resident’s stay at the Facility” would be resolved through “binding arbitration” rather than a lawsuit. When Joe and Olive died Ps brought separate suits against D in Kentucky state court. Ps alleged that D had delivered substandard care to Joe and Olive, causing their deaths. D moved to dismiss the cases and to invoke arbitration. The trial court denied D’s motions, and the Kentucky Court of Appeals agreed that the estates’ suits could go forward. The Kentucky Supreme Court affirmed. It held that a power of attorney could not entitle a representative to enter into an arbitration agreement without specifically saying so. The Supreme Court granted certiorari.