CA SUPREME COURT RULES THAT MILLIONS OF CONSUMERS CANNOT BE BOUND TO ARBITRATE LEGAL CLAIMS
On March 28, 2024, the California Supreme Court unanimously ruled that signing an advance health care directive appointing an agent to make health care decisions does not delegate power to that agent to enter into voluntary arbitration agreements. The Supreme Court’s holding protects the more than 10 million Californians who have executed advance health care directives, including those who enter nursing homes, which are not allowed to condition admission upon the signing an arbitration clause.
BHB represented Plaintiff Charles Logan who executed a health care power of attorney that gave his nephew, Mark Harrod, the ability to make “health care decisions” for him if he became incapacitated. When Mr. Logan entered the Country Oaks facility in Pomona, California, Mr. Harrod signed an arbitration agreement that was presented with the admission papers. The California Supreme Court held that Mr. Harrod could not bind Mr. Logan to arbitrate his subsequent elder abuse claim because he lacked the authority to do so.
Borden has been one of the leading attorneys protecting the elderly in California. The Harrod victory against forced arbitration in the California Supreme Court was a continuation of BHB’s long track record of bringing high impact cases to obtain structural reforms in the nursing home industry, including fighting against illegal dumping of elderly residents and protecting against nursing chains’ misuse of psychotropic drugs.
“The Court protected the constitutional rights of millions of unsuspecting consumers.”
Co-counsel: Lanzone Morgan, LLP
Important Documents:
CA Supreme Court: Opinion - Harrod v. Country Oaks Partners, LLC, et al., S276545 (2024) | Oral Argument Link
BHB Press Release
Media Coverage: Law360