Kindred Nursing Centers Limited Partnership v. Clark

Facts

When the Plaintiffs admitted their relatives into a nursing home managed by the Defendant, they each used a power of attorney to complete the necessary paperwork. They signed contracts on behalf of their relatives agreeing to arbitrate any disputes related to the care provided by the Defendant. After their relatives died the following year, the Plaintiffs filed separate lawsuits alleging that the Defendant’s substandard care led to the deaths. The Defendant sought to dismiss these lawsuits, arguing that the arbitration agreements barred them. However, Kentucky courts invalidated both arbitration agreements. The Kentucky Supreme Court ruled that the state constitution’s guarantee of an inviolate right to a jury trial requires a power of attorney to explicitly state that the agent can waive this right. The court held that this clear-statement rule was consistent with the Federal Arbitration Act (FAA), even though it imposed different requirements for arbitration agreements compared to other contracts. The U.S. Supreme Court agreed to review the case.