Do you usually read the fine print when admitting a loved one to a nursing facility? You should do so because you may be giving up the right to sue if abuse occurs.

Most nursing contracts include arbitration clauses, which require complaints or disputes to be settled by an arbitrator rather than through a court process. This can limit compensation, block appeals, and keep abuse cases out of public record. However, families can challenge these clauses, especially in cases involving sexual assault or harassment.

How Arbitration Clauses Protect Nursing Homes

Nursing facilities prefer arbitration because it keeps abuse claims behind closed doors. In case of abuse, you cannot take the nursing home to court. Your only option is to take the case to an arbitrator, who is often chosen by the facility. These agreements also:

  • Limit discovery: It is hard to collect evidence.
  • Restrict appeals: Victims may be stuck with unfair decisions.
  • Reduce payouts: Some claims receive little or no financial compensation.

Ways to Challenge Arbitration Agreements

The good news is that these agreements aren’t always enforceable. Courts have struck down arbitration clauses in nursing home contracts for several reasons, including:

  • Lack of capacity: If the resident was mentally impaired when signing.
  • No legal authority: If a family member signed without proper power of attorney.
  • Unfair terms: Courts may reject arbitration clauses if they are one-sided, unclear, or buried in paperwork.
  • Public policy violations: Some courts have ruled that arbitration clauses contradict state laws meant to protect nursing home residents.

New Federal Law Helps Abuse Victims Take Cases to Court

In March 2022, Congress passed the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act. This law prevents arbitration from being enforced in cases involving sexual misconduct, even if a contract includes an arbitration clause.

If sexual assault or harassment occurs in a nursing facility, victims can take their case to court instead of being forced into private arbitration. Some courts may even allow entire cases to be heard in court if they involve other claims related to the abuse.

Contact The Williams Litigation Group today to discuss how we can help you challenge unfair arbitration clauses and fight for your loved one’s rights.