Recently, an appeals court issued an opinion in a Florida nursing home abuse lawsuit. According to the court’s opinion, the plaintiff filed a lawsuit against a nursing home, alleging that the home neglected his father, leading to the father’s death. The nursing home filed a motion to dismiss the claim and compel arbitration based on an agreement the parties signed before the plaintiff’s father admittance.
Arbitration agreements are designed to provide parties with an alternative to filing a lawsuit when a dispute arises. Although arbitration is designed to cut legal costs, it also is a means to force plaintiffs to accept terms that may not be in their favor. There are generally two types of arbitration, binding and non-binding. If a party signs a contract for binding arbitration, the decision is binding and cannot be appealed. However, non-binding arbitration allows the parties to either accept the decision or file a lawsuit.
Generally, both parties must agree to arbitrate before undertaking any contractual relationship. However, in many situations, a nursing home adds the provision to their contract, and the other party may not adequately understand the agreement or have the opportunity to dispute it. For example, if a family needs to get their loved one member into a Florida nursing home, they may sign the contract and agreement to arbitrate because they want to ensure that their loved one is admitted as soon as possible.