Arbitration Clauses for claims against nursing home and authority: Beverly Health and Rehabilitation Services, Inc. v. Smith (COA 4/10/2009)

Beverly Health and Rehabilitation Services, Inc. v. Smith
2009 WL 961056
Opinion by Judge Wine; Judges Dixon and Keller concurred.

The Court affirmed an order of the circuit court denying a motion to compel arbitration on an estates’ claim that treatment the deceased received in a nursing facility hastened his death. The Court first held that the law of third party beneficiaries was inapplicable because neither the deceased nor his power of attorney were strangers to the contract. The Court then held that there was no evidence indicating that the deceased’s daughter had the authority to sign and therefore, there was no binding, written contract with regard to the arbitration agreement.

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