Kindred Nursing Centers, L. P. v. Clark

The case consolidated two wrongful death suits against Kindred Nursing Centers by the families of Joe Clark and Olive Clark. Upon admission, their relatives signed arbitration agreements under powers of attorney. The Kentucky Supreme Court declined to enforce these agreements, ruling that a power of attorney must explicitly grant the authority to waive the right to a jury trial. The U.S. Supreme Court reversed this decision, holding that the Kentucky rule violated the Federal Arbitration Act by singling out arbitration agreements for disfavored treatment. The Court emphasized that courts must place arbitration agreements on an equal footing with other contracts and cannot impose additional requirements that target their formation.

The U.S. Supreme Court reversed the Kentucky Supreme Court in a 7-1 decision, holding that the FAA preempts the state rule because it targets arbitration by imposing a special requirement that is not applied to other contractual waivers.

Whether the Kentucky Supreme Court's clear-statement rule, which requires a power of attorney to explicitly mention the right to trial by jury before an attorney-in-fact can enter into an arbitration agreement, violates the Federal Arbitration Act by discriminating against arbitration agreements.

The decision reinforced the primacy of the Federal Arbitration Act over state laws that might hinder the enforcement of arbitration agreements, particularly in nursing home contracts. It significantly impacts elder care litigation by making it more difficult for families to pursue wrongful death claims in court, compelling them into private arbitration forums. Consumer advocates criticized the ruling for limiting access to the courts for vulnerable populations.