Nursing home arbitration clauses have recently come under heavy scrutiny. These clauses, which may act to prevent a party from filing a lawsuit in a court of law, are often contained in large blocks of small print, making it unlikely that the person signing the contract fully understands the importance of the rights they are giving up. As a result, courts routinely invalidate nursing home arbitration agreements when the inclusion and enforcement of the clause would violate general contract law.
However, in a recent U.S. Supreme Court opinion, the Court found in favor of a nursing home, upholding the arbitration agreement that the plaintiffs signed.
The Facts of the Case
The plaintiffs were the surviving loved ones of two family members who died while in the care of the defendant nursing home. Prior to admitting their loved ones to the nursing home, they obtained a valid power of attorney document, giving them the ability to “dispose of all matters” related to their loved ones.