James A. Welch et al. v. Oaktree Health and Rehabilitation Center LLC d/b/a Christian Care Centers of Memphis et al.

Tennessee’s Durable Power of Attorney for Health Care Act, Tennessee Code Annotated sections 34-6-201 to -218, includes a provision for limited statutory immunity from civil liability, under certain conditions, for health care providers who rely in good faith on health care decisions made by an apparent agent on a principal’s behalf. Id. § -208. Tennessee’s Health Care Decisions Act, Tennessee Code Annotated sections 68-11-1801 to -1815, includes a similar provision for limited statutory immunity from civil liability, under certain conditions, for health care providers who comply in good faith with health care decisions made by an apparent agent on a principal’s behalf. Id. § -1810. The health care decision in this case is the execution of an arbitration agreement with admission to a nursing home. The agreement was signed by an agent under a durable power of attorney for health care executed several years earlier. After the resident’s death, his estate filed a wrongful death lawsuit against the nursing home on negligence theories. On appeal from the trial court’s denial of the defendant nursing home’s motion to compel arbitration, we hold that the nursing home does not meet the requirements for limited statutory immunity from civil liability under either the Durable Power of Attorney for Health Care Act or the Health Care Decisions Act. Consequently, the trial court did not err in considering evidence on whether the principal had the requisite mental capacity to execute the durable power of attorney for health care. We overrule the holding on the immunity provision in the Durable Power of Attorney for Health Care Act, Tennessee Code Annotated section 34-6-208, in Owens v. National Health Corporation, 263 S.W.3d 876, 889 n.4 (Tenn. 2007), to the extent it is inconsistent with this opinion. We affirm the trial court, reverse the Court of Appeals, and remand to the Court of Appeals.