Elder Law FAX The March 26, 2007, issue of Elder Law FAX, a free newsletter published every other Monday by the Elder Law Practice of Timothy L. Takacs. State High Court Rejects Binding Arbitration Clause in Nursing Home Admission Contract   The Oklahoma Supreme Court recently ruled that a federal arbitration law does not apply in a case involving the death of a nursing home resident. The court rejected the nursing home's bid to require that the case be arbitrated rather than go to a jury.   Detra L. Bruner is the daughter of Leola Bruner. On June 22, 2004, Mr. Bruner, as her mother's attorney in fact, signed the contract for her mother to be admitted as a resident patient at Grace Living Center, a state licensed nursing care facility in Edmond, Oklahoma.   When she was admitted to the nursing home, Leola Bruner was 66 years old and physically frail, and her decision-making abilities and mental facilities were impaired. Leola Bruner resided at the nursing home from June 22, 2004 until July 17, 2004, when she was hospitalized. Leola Bruner died on August 31, 2004.   Detra Bruner, as representative of her mother's estate, filed a lawsuit against Grace Living Center alleged that Leola Bruner suffered injuries and illnesses, including a fractured hip and malnutrition, caused by the nursing home's negligence, that ultimately led to her mother's death.   In response to the complaint, the nursing home asked the trial court to dismiss the case and enforce the binding arbitration agreement in the admission contract.   The nursing home relied on the dispute resolution provisions in its admission contract which provided that all disputes "arising out of or in connection with the care rendered to the Resident by GLC [Grace Living Center] and/or arising out of or in connection with the Admission Agreement pursuant to which said care is rendered" are to be resolved by binding arbitration.   Many nursing homes now include a binding arbitration clauses in their nursing home admission agreements. Most courts that have ruled on the enforceability of these clauses have upheld them.   Under Oklahoma's Nursing Home Care Act, however, arbitration clauses are not enforceable. Nonetheless, the nursing home argued that the Federal Arbitration Act overrides the state law because the nursing home's receipt of Medicare payments constitutes "interstate commerce."   Under the U. S. Constitution, the U. S. Congress is given exclusive power to regulate interstate commerce. The Federal Arbitration Act's principle objective was to enforce arbitration agreements made by the parties to interstate commerce.   The Oklahoma Supreme Court rejected the nursing home's argument. The evidence was insufficient to connect the nursing home admission agreement between Leola Bruner and Grace Living Center with interstate commerce.   The arbitration clause in the admission contract violates the Oklahoma Nursing Home Act, the Supreme Court ruled, as the Act "is a clear rejection of arbitration agreements between nursing homes and their residents."   Bruner v. Grace Living Center.