Quick Summary

Here’s a summary of a recent court decision from Mississippi involving a nursing home admission agreement.

A family member signed paperwork when her relative entered a nursing home. Included in the paperwork was an optional arbitration clause. Arbitration is an agreement to resolve disputes privately instead of going to court.

The court ruled that the family member did not have the authority to sign that arbitration agreement on behalf of the resident.

Why This Matters

The case, Manhattan Nursing & Rehab v. Hawkins (Mississippi Supreme Court), focused on a simple but important question:  Who has the authority to agree to legal terms when someone enters a care facility?

In this situation, the resident’s relative signed the admission papers. But the arbitration clause clearly said it was optional and not required for admission or care.

Because of that, the court said agreeing to arbitration was not a health care decision.

And under Mississippi law, a person acting as a health care surrogate can only make health care decisions — not legal or contract decisions that go beyond medical care.

So the arbitration agreement was not enforceable.

This case is not based on Michigan law. But it highlights an issue families across the country run into.

When someone enters a hospital, nursing home, or assisted living community, family members are often asked to sign a stack of paperwork.

Some of those forms go beyond medical care. They may affect legal rights.

And unless someone has proper legal authority — like a durable power of attorney — those agreements may not hold up later.

This case also reminds us that facilities often include optional clauses that people sign without realizing what they mean.

Simple Lesson

Authority matters.  Not everyone who helps with care decisions has the legal power to sign agreements.

Good planning makes that clear before a crisis happens.

Action Step

Make sure someone you trust has the proper authority to act for you if you cannot.

A well-prepared estate plan usually includes this.

If this topic raises questions for you or your family, feel free to call (517) 548-7400 or contact us online: https://www.michiganestateplans.com/contact-us