01/15/2026

Ohio Appeals Court Raises Bar for Enforcing Nursing Home Arbitration Agreements

An Ohio appellate court has signaled caution for nursing homes that rely on stand-alone arbitration agreements signed by guardians without clear legal authority. In a recent decision, the Ninth District Court of Appeals upheld a trial court’s refusal to enforce an arbitration agreement signed by a resident’s guardian of person, concluding that such agreements are separate contracts and not automatically covered by authority to make care and placement decisions. The case, Barker v. Arbors at Stow, reinforces that arbitration provisions are evaluated independently from admission or resident care agreements.

The court found that while a guardian of person may consent to medical care and living arrangements, agreeing to arbitrate legal claims falls within the authority of a guardian of estate, who manages financial and legal matters. Because the resident’s guardian of estate did not sign the arbitration agreement, the court declined to enforce it. Legal counsel at Dinsmore & Shohl LLP note the decision highlights the importance of reviewing letters of guardianship—and powers of attorney—before executing arbitration or other binding legal agreements, particularly in skilled nursing settings where multiple fiduciaries may be involved.