The Fifth Circuit Court of Appeals consolidated two cases that asked similar questions: what level of authority does one need under Mississippi law to execute an arbitration agreement. Both cases involved arbitration agreements relating to nursing homes.
The cases are: Gross v. GGNSC Southaven, LLC and Cotton v. GGNSC Batesville, LLC. In both instances, the trial court denied the nursing homes’ motions to compel, reasoning that Mississippi law required an executed power of attorney, or some other “formal legal device” to bind a nursing home resident to confer authority on another to sign an arbitration agreement.
Making an “Erie guess,” the Fifth Circuit Court of Appeals remanded the matters back to the district court for a factual finding of whether the son had the express authority to act on his mother’s behalf, including executing an arbitration agreement on her behalf.
