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New York Court Examines Forum Selection Clauses in Medical Malpractice Cases

When patients transition from hospitals to nursing homes or rehabilitation centers, they often do so under vulnerable and stressful circumstances. Amid medical concerns and logistical arrangements, critical documents, such as admission agreements, are sometimes signed without fully understanding their legal implications. A recent New York case illustrates how disputes over these agreements, particularly forum selection clauses, can arise when patients later pursue claims for negligent care. If you or a family member suffered harm due to substandard care at a medical or long-term care facility, you should speak with a Rochester medical malpractice lawyer about your rights and legal remedies.

History of the Case

Reportedly, the plaintiff, following a discharge from the defendant hospital, was admitted to the defendant nursing home and rehabilitation center, where she developed and suffered worsening pressure ulcers. The plaintiff initiated a medical malpractice lawsuit against both defendants, asserting claims related to negligent care during her time at both facilities.

Allegedly, the plaintiff filed her lawsuit in Kings County, where she resides, where the hospital is located, and where the nursing home also maintains a place of business. The nursing home, however, sought to transfer the case to Nassau County, citing a forum selection clause contained within an admission agreement executed upon the plaintiff’s admission to the facility.

It is alleged that the agreement was signed not by the plaintiff herself, but by her son, who was designated as a “resident representative” on the document. The nursing home relied on this clause, claiming that the plaintiff was bound to litigate any disputes in Nassau County as per the terms of the agreement. The plaintiff opposed this request, arguing that her son lacked the authority to bind her to the forum selection clause, and that the agreement should not be enforceable against her under these circumstances.

Forum Selection Clauses in Medical Malpractice Cases

The court reviewed the case under CPLR 501, which addresses the enforceability of forum selection clauses. The court explained that, generally, such clauses are valid unless proven to be unreasonable, unjust, or otherwise unenforceable due to fraud, overreaching, or violations of public policy. The court further acknowledged that forum selection clauses are often upheld in nursing home admission agreements when executed by individuals with proper authority.

However, the court emphasized that the movant bears the burden of proving that the individual who signed the agreement had actual authority to bind the plaintiff to its terms. Under New York law, specifically 10 NYCRR 415.2(f)(1), a person can be designated as a “resident representative” in one of three ways: (1) by court appointment, (2) by the resident if they have capacity, or (3) by family members or other interested parties if the resident lacks capacity.

Here, the nursing home submitted an affidavit from its admissions coordinator, stating that she believed the plaintiff’s son was authorized to act as her representative based on his representations. However, the court noted that this belief alone was insufficient. The coordinator’s affidavit did not present evidence that the plaintiff herself designated her son, that a court-appointed him as her guardian, or that there was a collaborative designation process under the regulatory criteria.

The court also rejected the nursing home’s argument that the son had “apparent authority” to bind the plaintiff, reiterating that apparent authority must be based on the principal’s—here, the plaintiff’s—own conduct, not on the representations of the purported agent alone.

Finally, the court dismissed the claim that the plaintiff, as a beneficiary of the admission agreement, could be bound under a third-party beneficiary theory or estoppel. It found no evidence that the plaintiff knowingly exploited or was aware of the forum selection provision.

Given these deficiencies, the court held that the nursing home had failed to meet its burden to show that the forum selection clause was enforceable against the plaintiff. As such, the court denied the motion to change the venue from Kings County to Nassau County.

Meet with a Trusted Rochester Medical Malpractice Attorney Today

Forum selection clauses in healthcare admission agreements can have significant procedural consequences for medical malpractice claims, especially when issues of authority and agency arise. If you or a loved one suffered harm due to negligent care at a medical facility or nursing home, it is essential to seek guidance from an experienced attorney. The knowledgeable Rochester medical malpractice attorneys at DeFrancisco & Falgiatano Personal Injury Lawyers are ready to help you pursue your claim and protect your rights. Contact us at 833-200-2000 or reach out online to schedule a consultation.

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