Arkansas Court of Appeals Clarifies Power of Attorney Authority in Nursing Home Arbitration Agreements
TL;DR
- Arkansas Court of Appeals recognizes that a durable power of attorney can authorize agents to agree to arbitration in nursing home admission.
- Reversal of lower court decision: a valid power of attorney may waive a jury trial right via an arbitration agreement.
- Further proceedings ordered to assess enforceability and scope of the disputed arbitration agreement.
Overview
In April 2026, the Arkansas Court of Appeals held that a properly authorized agent under a durable power of attorney can bind a nursing home resident to an arbitration agreement, provided the power of attorney includes authority over claims and litigation. This addresses key compliance and contractual issues for healthcare providers and regulated care facilities.
What Happened
The case arose after Alma Gennings was admitted to Sherwood Nursing & Rehabilitation Center in 2023, with admission documents-including an arbitration agreement-signed by her daughter, Dana Witkowski, as attorney-in-fact under a durable power of attorney.
Following Ms. Gennings's death, litigation was brought against the nursing facility for negligence and other claims. Defendants moved to compel arbitration based on the signed agreement.
The Pulaski County Circuit Court denied this motion, finding that a durable power of attorney did not allow an agent to waive a resident's right to a jury trial; this was reversed on appeal.
The appellate court found Arkansas statutes do allow an agent with authority over claims to agree to arbitration, but remanded for the lower court to determine the validity and enforceability of the arbitration agreement, including whether traditional contract defenses apply.
Context
The case, Sherwood Nursing & Rehabilitation Center, Inc. v. Witkowski, highlights ongoing legal scrutiny of arbitration clauses in healthcare admissions, especially where agents act based on powers of attorney.
Federal and state law, including the Federal Arbitration Act and Arkansas statutes, favor arbitration agreements but require that agency authority and contractual validity be thoroughly established.
Why It Matters
- The decision provides legal clarity for healthcare providers drafting and relying on arbitration provisions executed by agents under a power of attorney.
- It underscores the importance of clear documentation, informed consent, and compliance with statutory requirements in care facility admission procedures.
- Future litigation about enforceability of such agreements in Arkansas will refer to this ruling, potentially affecting the risk management and governance practices of healthcare providers.
Sources
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Arkansas Court Clarifies Power of Attorney in Nursing Home Arbitration
lawyer-monthly.com