Nursing Home Arbitration Agreements

The purpose of a nursing home is to provide elderly residents with quality care, a safe environment, and comfortable accommodations. Contrary to the purpose of a nursing home, many facilities are rampant with elder abuse and neglect. 

Typically, victims of abuse or neglect can pursue legal action against the at-fault party if they can provide evidence of wrongdoing. Still, if residents have signed pre-dispute arbitration agreements, they are unlikely to obtain justice. The Federal Arbitration Act protects the integrity of these agreements if they are signed lawfully. Even so, many nursing homes use shady tactics to undermine the rights of residents with these clauses. 

If your loved one has suffered neglect or abuse while in a nursing home, call now to discuss your legal options with one of our experienced nursing home abuse lawyers.

What are Arbitration Agreements?

In a traditional court proceeding or claims process, the plaintiff and defendant are on equal ground in a dispute. The plaintiff must provide enough evidence to prove that the defendant is more likely than not responsible for the harm caused by negligent actions. An impartial judge or jury makes a decision in each case, resulting in a settlement for damages or injunctive relief. 

On the other hand, arbitration agreements in nursing homes are contracts that residents or their representatives may be asked to sign during the admissions process. This document dictates that all disputes between the resident and the nursing home will be arbitrated behind closed doors without the involvement of a court, judge, or jury. Though arbitration proceedings are billed as impartial, they are often one-sided to the benefit of the nursing home. 

How Arbitration Agreements Work in Nursing Homes

If you have signed an arbitration agreement and abuse or neglect occurs, the nursing home will hire a private arbitrator to oversee the process. Arbitrators have a financial incentive to protect the nursing home, which creates a bias toward the facility. The hearing will occur behind closed doors to keep any disputes private. Both sides will introduce evidence and present their arguments about the dispute. 

The “neutral” arbitrator will then rule on the dispute and determine whether compensation will be paid to the victim. Again, this process is billed as fair and impartial, but this is not true for many pre-dispute arbitration agreements. 

Prevalence of Arbitration Agreements in Nursing Homes

Nursing homes have a huge stake in protecting their reputations. If it becomes public knowledge that numerous instances of abuse and neglect are occurring, they could lose funding and resident intake. As a result, many facilities will include an arbitration agreement in the admission paperwork for each resident. 

What makes things worse for victims is that these nursing home admission agreements are billed as industry standards. The pre-dispute arbitration agreement is buried in all the other documents that must be signed, so it is easy for residents or their guardians to miss it when they are going through the paperwork. Some nursing homes even include a mandatory arbitration agreement in each resident contract. This method pressures nursing home residents to sign over their rights before a dispute arises. 

Legal Implications of Nursing Home Arbitration Agreements

Pre-dispute arbitration agreements are complex legal issues. Before you sign an arbitration agreement as a nursing home resident, you must understand the implications of this legally binding document. 

Enforceability of Arbitration Agreements

If you sign a pre-dispute arbitration agreement, you are legally bound by it. Suppose an issue arises, and you want to pursue legal action against the nursing home for abuse or neglect. In that case, you are legally prohibited from doing so outside the arbitration process. 

Some circumstances could result in an arbitration agreement not being enforced. Unconscionability is one principle that could save you from this admission agreement. An arbitration clause is considered unconscionable if it is so unfair or one-sided that no reasonable person would sign it. If the process that forced you to sign the pre-dispute arbitration document was unfair, this could also fall under the unconscionability clause. 

Another way out of pre-dispute arbitration agreements is the lack of capacity statute. A person who lacks the capacity to understand this agreement could be freed from its mandates. For example, if you have a mental disorder and sign an arbitration agreement, that clause may not be enforceable.  

Advantages and Disadvantages of Arbitration

Not every arbitration agreement is a negative experience for nursing home residents. The benefits of signing this legal document include efficient proceedings for disputes and lower costs to settle. However, you could face a challenging process to prove your case. The arbitration agreement may have limited discovery clauses or restrictive appeal options. It is essential to research how arbitration agreements work and read the contract’s specific language to ensure you understand the dispute process. 

Impact on Residents’ Rights

Binding arbitration agreements severely limit a resident’s right to seek justice for negligence, abuse, or exploitation. Without a pre-dispute arbitration clause, victims of these disputes can pursue legal action in the form of a lawsuit against the nursing home and its staff. A civil claim is far more likely to be fair to both parties involved, and the process is entirely transparent. 

However, if you sign an arbitration agreement with a nursing home that cannot be dismissed due to unconscionability or lack of capacity, you are not allowed to pursue a civil lawsuit. 

Navigating Nursing Home Arbitration

Residents who sign arbitration agreements must understand them in case a dispute occurs. Whether you are in the process of completing a contract or you already are a resident, here are some strategies to navigate the nursing home arbitration issue. 

Reviewing and Understanding the Agreement

Reading a binding arbitration agreement closely is essential. If you already live in a nursing home, look for a copy of your contract and find the arbitration section. If you are applying to become a resident, you still have time to review any pre-dispute arbitration agreements in the paperwork before signing. To make an informed decision, you must do your due diligence. 

There are several things to look for in the admission agreement. First, what clauses are there regarding the discovery and presentation of evidence? If there are limits to the process, this could damage your ability to win your case in front of the arbitrator. Limits on recoverable damages are also a red flag as they set a maximum amount of compensation. Language about a diminished right to appeal should also be cause for concern for the signee. 

Finally, if there are statements about care being dependent on your signing of binding arbitration agreements, this is illegal. Admission into a nursing home and a resident’s right to quality care cannot be withheld if an arbitration agreement is not signed. 

Negotiating Arbitration Clauses

You should not sign the document if you have any concerns about the arbitration agreement in your admission contract. Instead, ask to negotiate the terms of the agreement with the nursing home. Since care or admission cannot be denied based on not signing an arbitration clause, their response will be very revealing. You can refuse to sign unless the terms are amended. It may be possible to challenge the contract’s validity based on unconscionability or duress. 

Before proceeding with admission agreements, you can also contact a lawyer who will read the fine print and help you understand what they mean for future disputes. Hiring a lawyer is often enough to get the nursing home to alter the terms or rescind the agreement entirely from the contract. 

Challenging an Arbitration Agreement

You typically have 30 days to rescind an arbitration agreement with a nursing home. There may also be a period to withdraw from the larger resident contract. If these timeframes have passed, your only option is to legally challenge the agreement.

This process will involve hiring a lawyer and bringing the issue before a court. The arbitration contract can be challenged under legal principles like fraud, duress, lack of capacity, or unconscionability. You and your attorney must prove that the contract is unreasonable or that you were coerced into signing without proper knowledge of the terms. 

Seeking Legal Help with Nursing Home Arbitration for Nursing Home Residents

Pre-dispute arbitration clauses are extremely common in the nursing home industry. These continuing care retirement communities want to protect themselves financially so residents cannot sue them for large settlements if abuse, neglect, or exploitation occurs. As a resident or family member of a nursing home patient, you have the right to seek legal guidance if you are stuck with this type of contract or if there is a proposed rule in a new contract you plan to sign. 

When to Consult a Lawyer

When arbitration agreements require your signature, it is essential to understand the terms of the contract. If you are confused or concerned about the wording, hiring a lawyer before signing is the best course of action. An experienced attorney will read over the agreement and help you negotiate terms to ensure your rights as a resident are not violated if a dispute occurs. 

If you or your family members have already signed such agreements in the past and disputes arise, you may want to hire a lawyer to determine the agreement’s validity. Your only hope of avoiding an unfair arbitration process and holding the nursing home accountable is to have the agreement challenged on grounds like fraud, duress, or unconscionability. Speak to a lawyer before the hearing, or it may be too late to rectify the situation. 

Role of a Lawyer in Arbitration

An experienced lawyer will ensure your constitutional right is upheld. They can assist with reviewing any agreements already in place, negotiating terms for contracts not yet signed, representing clients during arbitration hearings, and challenging the enforceability of an agreement. 

Get a Free Consultation With a Nursing Home Lawyer

Nursing Home Law Center is dedicated to protecting the rights of nursing home residents and their family members. Abuse and neglect are rampant in the industry, and victims often choose to file lawsuits against the facilities and staff members responsible for the harm they suffered. However, signing an arbitration agreement when applying to the nursing facility could undermine your rights and put you through an imbalanced proceeding that favors the facility.

Whether you are confused about the clauses in a nursing home contract you have yet to sign or want to challenge an arbitration agreement already in place, our team can provide legal guidance. We will work to uphold your rights under state and federal laws so you can experience fair proceedings when instances of abuse or neglect occur. 

Contact the Nursing Home Law Center today for a free consultation about your case at 800-926-7565 or via the contact form online. Together, we will hold the responsible party accountable for the harm you suffered.