The U.S. Supreme Court has sided with a nursing home in a Kentucky case tied to powers of attorney and arbitration agreements.

The high court ruled 7-1 decision that the Kentucky Supreme Court’s clear-statement rule violates the Federal Arbitration Act by singling out arbitration agreements for disfavored treatment. The case, Kindred Nursing Centers Limited Partnership, et al v. Clark, involved two separate powers of attorney that signed arbitration agreements upon the admission of their relatives into a Kentucky nursing home.

LeadingAge says it is pleased that the decision reaffirmed the Supreme Court’s settled position that states may not create separate laws that impinge on the parties’ right to enter into an arbitration agreement in any case, and that nursing home contracts are not exempt from this position. The organization says the case also points out the importance of assuring that if a family member signs the entrance agreement he or she has a valid power of attorney.

Read the decision here.