California Supreme Court Ruling Protects Healthcare Agents from Binding Arbitration: What This Means for Your Family

Can Someone with Power of Attorney for Healthcare Sign Away Your Right to a Jury Trial?

If you or a loved one are entering a skilled nursing facility in California, you need to know about a landmark ruling that protects your legal rights—even when someone else is making healthcare decisions on your behalf.

In Harrod v. Country Oaks Partners, LLC (Case No. S276545), the California Supreme Court made it clear: a healthcare agent acting under a power of attorney for healthcare cannot sign away your right to sue a nursing facility by agreeing to mandatory arbitration.

## Who This Ruling Protects

This decision is crucial for California families who are:

Placing elderly parents or relatives in assisted living or skilled nursing facilities

Acting as healthcare agents under a power of attorney for healthcare

Concerned about nursing home abuse, neglect, or inadequate care

Navigating the complex intersection of estate planning and elder care protection

## What Happened in This Case?

Charles Logan granted his nephew, Mark Harrod, power of attorney for healthcare using the standard California Medical Association form. When Logan was admitted to Country Oaks Care Center for rehabilitative treatment, Harrod signed two contracts on his uncle’s behalf: one for admission and a separate, optional arbitration agreement.

After Logan allegedly suffered maltreatment at the facility, Harrod filed a lawsuit claiming negligence and elder abuse. Country Oaks tried to force the case into arbitration based on the agreement Harrod had signed.

The trial court, appellate court, and ultimately the California Supreme Court all ruled the same way: Harrod’s authority to make healthcare decisions did not include the power to sign the arbitration agreement.

## Why Healthcare Agents Cannot Sign Arbitration Agreements

The Supreme Court based its decision on California’s Health Care Decisions Law, which carefully defines what constitutes a “healthcare decision.” According to the Court:

Healthcare decisions include who provides care and what treatments are given to the patient’s body

There is no catchall provision allowing healthcare agents to make decisions for other purposes

The law does not grant power to waive the patient’s access to courts by agreeing to arbitration

Optional dispute resolution agreements are separate from healthcare decisions and require separate authority

## What This Means for California Families

If you are acting as a healthcare agent:

You have the authority to make medical decisions, but not to sign away legal rights

When admitting a loved one to a care facility, you can refuse to sign optional arbitration agreements

If a facility pressures you to sign arbitration paperwork, you should consult with an attorney

If you are creating estate planning documents:

Your standard power of attorney for healthcare protects your right to sue if something goes wrong

Healthcare agents cannot accidentally waive your access to the courts

You maintain legal protections even when someone else is making healthcare decisions for you

## How Can Families Protect Themselves?

California residents concerned about protecting elderly family members should take these steps:

Review all admission documents carefully before signing anything at a care facility

Understand that arbitration agreements are optional—you can decline to sign them

Create comprehensive estate planning documents that clearly define the scope of your healthcare agent’s authority

Consult with experienced estate planning attorneys who understand both elder care and legal protections

## Protect Your Family’s Rights with Comprehensive Estate Planning

At California Probate and Trust, PC, we help California families navigate the complex intersection of estate planning, healthcare directives, and elder care protection. Our experienced attorneys understand how recent court decisions like Harrod v. Country Oaks impact your family’s legal rights.

We offer:

Free consultations to review your estate planning needs

Powers of attorney for healthcare that protect your rights

Comprehensive estate plans that safeguard your family across generations

Transparent pricing and compassionate guidance through every step

Schedule your free consultation today at cpt.law or call our Sacramento office. Let us help you create an estate plan that protects both your healthcare wishes and your legal rights.

## Case Details

Case Name: Harrod v. Country Oaks Partners, LLC

Case Number: S276545

Date Filed: March 28, 2024

Court: Supreme Court of California

Legal Category: Litigation – Advance Health Care Directives

Source: California Lawyers Association – Harrod v. Country Oaks Partners, LLC

Full Opinion: Supreme Court Opinion PDF

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Legal Disclaimer: This article is provided for informational purposes only and does not constitute legal advice. The information presented is based on the cited California Supreme Court case and general legal principles. Every family’s situation is unique, and laws may change over time. For specific guidance regarding your estate planning needs, powers of attorney, or questions about nursing facility agreements, please consult with a qualified California estate planning attorney. California Probate and Trust, PC offers free consultations to discuss your individual circumstances.