Kindred Nursing Centers v. Clark
Issues
Does the Federal Arbitration Act preempt a state-law contract rule that requires a power of attorney to expressly refer to arbitration agreements before an attorney-in-fact can bind her principal to such an agreement?
The Court must consider whether federal law preempts state law regarding arbitration clauses in powers-of-attorneys. Kindred Nursing Centers argues that state law, which requires principals to explicitly authorize an agent to enter into arbitration agreements, violates the Federal Arbitration Act. Contrarily, Janis E. Clark and Beverly Wellner argue that state law governs contract formation and that state law requires powers-of-attorneys to adhere to the expressed intentions of the principal in a contract. The case will determine whether powers-of-attorney must explicitly grant the agent the power to bind the grantor to an arbitration agreement and may impact elder care and estate planning practices across the United States.
Questions as Framed for the Court by the Parties
Whether the Federal Arbitration Act preempts a state-law contract rule that singles out arbitration by requiring a power of attorney to expressly refer to arbitration agreements before the attorney-in-fact can bind her principal to an arbitration agreement.
Petitioners Kindred Nursing Centers et al. (“Kindred Nursing”) operate nursing homes and rehabilitation centers, including the Winchester Centre for Health and Rehabilitation. See Kindred Nursing Centers v. Clark, 478 S.W.3d 306 (Ky. 2015). Respondents Janis E.
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Additional Resources
- Erica Teichert, Kindred Nursing Home Arbitration Suit to Get U.S. Supreme Court Review, Modern Healthcare (Oct. 28, 2016).
- Emily Mongan, U.S. Supreme Court will review Kindred arbitration case, McKnight’s (Oct. 30, 2016).