Nursing Homes Requiring Families to Sign Arbitration Agreements Before Admittance

Daniel J. Williams, Esq.

Recent news out of Oklahoma shows why having competent legal representation is important if you are looking for a nursing home for a loved one. And, importantly, having such representation before making the choice of which nursing home to go with.

Many of Oklahoma’s 300-plus nursing homes require potential residents to sign arbitration agreements prior to their being admitted to the nursing home. The arbitration agreement means that the family would be bound to arbitration if a disagreement over care arose, which would effectively strip the family’s ability to sue in court. And the damages awarded in arbitration would probably be less than if a civil suit in court were filed.

Arbitration is an alternative form of dispute resolution that takes place outside the courts. While this method has its uses, it can limit the rights of victims of elder abuse.  

Other downsides of arbitration in the case of potential nursing home abuse include: enforcing an award to be paid can be more complicated, the proceedings can be made confidential, which allows the nursing home to potentially cover up their wrongdoings, and there are limited avenues for appealing a bad decision, among other negatives.

If you are considering putting a loved-one in a nursing home, you should contact a knowledgeable elder abuse or elder law attorney to review any agreements the nursing home might have you sign prior to admittance. Planning ahead of time can help prevent possibly tragic situations of elder abuse; and, you can ensure that if anything does go wrong, you will have legal recourse to seek justice and compensation.

Even if the state prohibits such arbitration agreements, as they do in Oklahoma, nursing homes could argue that such agreements are permissible under federal law. That is the argument the Oklahoma nursing homes have made.

You can read more on this issue in The Norman Transcript:

http://www.normantranscript.com/news/oklahoma/many-nursing-homes-require-families-to-sign-arbitration-agreements-before/article_09d84ebf-21c4-5b42-8f63-a3bc64d70437.html

Daniel J. Williams is an Elder Abuse Attorney with Fausone Bohn, LLP. The firm has former prosecutors and experienced attorneys who can help you and your family right the wrongs done to your loved one, whether it be nursing home abuse or financial exploitation. Call the Metro Detroit Elder Abuse attorneys today, at (248) 468-4536, or visit us
online at www.fb-firm.com. 

Business Courts to Roll Out September 1st

James Fausone, Esq.

As many business owners know, the slow crawl of business litigation can be a drain on time and resources.  However, starting September 1st, every Michigan Circuit Court with 3 or more judges is required to have a dedicated business court in place.  These new business courts are aimed at resolving business disputes efficiently and expediently.

The business court statute, MCL 600.8031, et seq, requires these circuit courts to create a docket specifically for business or commercial disputes.  Judges with expertise, background, or specialized training in business law will preside over these cases.  Any case containing a business or commercial dispute must be funneled into the dedicated business docket.  It is also anticipated that these specially-trained business law judges will have greater involvement in the cases early on in order to expedite the settlement of these cases.

The law is drafted broadly – all cases involving a business dispute, even if there are additional non-business claims, must be heard by the business court.  This rule is mandatory – parties cannot stipulate to have their case heard out of the business court.

Additionally, written opinions of these business law judges will be indexed online and available for viewing.  This is helpful for practitioners looking for insight into how a particular judge may rule on an issue, as well as for other business court judges seeking guidance.  These opinions will not be binding precedent, but are expected to provide a measure of clarity and predictability to the business court.

Litigators won’t be the only attorneys affected by the new business courts – it may change the way transactional attorneys practice as well.  For instance, many attorneys automatically include mandatory arbitration clauses in their contracts in the event that a dispute arises.  However, these practitioners may now want to consider allowing these disputes to be heard in the business court rather than through binding arbitration.  The business court preserves the parties’ right to appeal, will have trained business law judges, faster processing times, and the availability of jury trials – all of which may be appealing to business owners.

If you have questions about Michigan’s new business courts, or if you are currently involved in a business dispute, contact the litigation department at Fausone Bohn, LLP, by calling (248) 380-0000 or online at www.fb-firm.com.  Our experienced legal professionals are available to give you the guidance your company needs.