Stephen Garcia and Brandon Faulkner Author Article in The Advocate on Scope of a Power of Attorney
In the article, “Scope of a Power of Attorney in the Nursing Home Arbitration Context – A Post Ping Case Law Update”, Founding Partner Stephen Garcia and Partner Brandon Faulkner, discussed the importance of fully understanding the language in power of attorney agreements, including the “requisite and necessary” clause in light of Ping v. Beverly Enterprises, Inc. To counter care industry’s attempt to enforce arbitration agreements it is crucial for plaintiffs’ attorneys to closely evaluate whether the power of attorney grants the attorney-in-fact the right to enter contracts or defend suits on the principal’s behalf.
In the article published by Kentucky Justice Association’s The Advocate, the Ping decision, a victory for the plaintiff’s bar, holds that in order to be enforceable, an arbitration agreement must be signed by a person with proper authority. Ping narrowed the law regarding when a power of attorney can bind a resident to the arbitration agreement terms. Ping is a tool for attorneys facing a Motion to Compel Arbitration, although recent cases appear to set apart Ping, broadening the circumstances under which a power of attorney executes an arbitration agreement on the resident’s behalf.
Mr. Garcia and Mr. Faulkner also highlighted Oldham v. Extendicare Homes, Inc. and GGNSC Vanceburg, LLC v. Taulbee as cases requiring awareness and understanding in order to successfully defend a Motion to Compel Arbitration.