A young woman signed an arbitration agreement on behalf of her uncle during the admissions process to the nursing facility. However, her uncle still possessed intact mental function and alertness at the time of admission. Though the young woman had been granted both durable power of attorney for finance and healthcare power of attorney on behalf of her uncle, the South Carolina Court of Appeals found that neither power granted authority at the time of the signing. This was because her power of attorney for finance was not yet granted at the time of admission, and the form used for healthcare power of attorney only became valid when the uncle becoming mentally incompetent.

As a result of these details, the nursing facility is not protected by the arbitration agreement and will be forced to litigate.

The original article can be found HERE.