Tennessee Health Management, Inc. v. Johnson, _____ So.3d _____, 2010 WL 1424018 (Ala. 2010):  In this decision (released on April 9, 2010), the Alabama Supreme Court reversed an order denying a nursing home’s motion to compel arbitration.  The court ruled that the arbitration agreement was enforceable, even though it was not signed by the resident.  The evidence showed that the resident’s daughter signed the agreement and other admission documents on the resident’s behalf, and the court held that the daughter had apparent authority to act for her mother in signing the documents.  This is a very favorable decision for nursing homes seeking to enforce an arbitration agreement that was not signed by the resident but was signed by another person apparently acting on the resident’s behalf.

Author: AL Supreme Court from