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In the fourth opinion issued on the subject in 2006, a federal court in Mississippi confirmed that arbitration agreements signed on behalf of a resident are unenforceable unless the nursing home presents evidence that the signatory acted with actual or apparent authority.
In Buie v. Mariner Health Care, Inc., No. 3:06cv499-WHB-JCS, 2006 WL 3858330 (S.D. Miss. Dec. 29, 2006), Mariner petitioned the Court to compel arbitration of a wrongful death action brought by Buie after Buie's mother passed away while residing at one of Mariner's nursing homes.
When Buie admitted her mother to the nursing home, she signed an arbitration agreement as part of the admission paperwork. However, the Court held that the arbitration agreement was invalid and refused to compel arbitration of the dispute.
Under Mississippi law, the Court noted, a decedent is only bound by actions of her agent that are within the scope of the agency. In this case, Mariner failed to present evidence that Buie's mother gave Buie either actual or apparent authority to sign the arbitration agreement.
The Court's decision mirrors opinions in Mariner Health Care, Inc. v. Ferguson, No. 4:04cv245, 2006 WL 185120 (N.D. Miss. June 30, 2006); Mariner Health Care, Inc. v. Green, No. 4:04cv246, 2006 WL 1626581 (N.D. Miss. June 7, 2006); and Mariner Health Care, Inc. v. Rhodes, No. 5:04cv217 (S.D. Miss. Sept. 28, 2005).
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