Over the past few years, arbitration contracts in nursing homes have been a hot-bed of litigation across the country. Indeed, last year, a federal agency attempted to make it much more difficult for government-funded nursing homes to include arbitration agreements in their pre-admission contracts. However, since then, the nursing home industry has been successful in preventing the ultimate passage and enforcement of that rule.
In the most recent development, the United States Supreme Court issued an opinion in a nursing home case siding with the nursing home. In that case, two family members filed wrongful death lawsuits against a nursing home that had cared for two of their loved ones prior to their death. Prior to the residents’ admission into the nursing home, they executed a general power of attorney in favor of the plaintiffs, giving the plaintiffs the ability to “dispose of all matters.”
The plaintiffs later placed their loved ones in the defendant nursing home. However, prior to their loved ones’ admission, the plaintiffs had to complete the pre-admission contract. One clause in that contract agreed to submit any and all claims that may arise between the parties to binding arbitration.