Arbitration agreements: defined

Arbitration agreements limit an injured person’s right to bring a lawsuit against a company without having their claim heard by an arbitrator.  The arbitration process is less formal than a lawsuit and the arbitrator’s decision, much like a judge’s, may be binding on both parties.  However, arbitration agreements can be unenforceable if they are found to be unconscionable – which means that they are so one-sided or that the person signing the agreement was under such stress that enforcing it would be an injustice.  That’s what many are saying is happening in the nursing home industry.

Seniors’ groups and legislators speak out

Several seniors’ groups, such as the Alzheimer’s Association and the American Association of Retired Persons (AARP), are supporting legislation that would make such agreements unenforceable.  Senator Michael Martinez (R-FL) introduced the legislation known as the Fairness in Nursing Home Arbitration Act which would bar pre-dispute arbitration agreements for long-term care facilities and their residents (or anyone acting on behalf of a resident). The Act defines “Long-term care facility” to include both nursing facilities and residential care facilities (such as assisted living facilities) providing any assistance with activities of daily living.

The nursing home industry alleges that using arbitration is a way for it to settle disputes more quickly and inexpensively than going through the traditional legal process.  However, Martinez’s lead co-sponsor of the legislation, Senator Herb Kohl (D-WI), disagrees.  According to Kohl:

 

Nursing home residents, one of our nation’s most vulnerable populations, must not lose their right to hold nursing homes accountable in the event of abuse or neglect.  This bipartisan legislation protects senior long-term care residents who unwittingly sign away their constitutional right to have their case heard by an impartial judge or jury.

If you’ve been injured due to the negligence of an elder care facility, contact a nursing home abuse attorney whose practice focuses in this area of the law.  Consultations are free, without obligation and are strictly confidential.