Supreme Court to Hear Important Case on Nursing Home Care Agreements
On February 22 of this year, the United States Supreme Court will hear arguments in a case that may greatly affect nursing home care in this country. According to one news source, the case considers the legality of arbitration agreements signed by representatives of nursing home residents.
In that case, two nursing home residents died in nursing homes. Their families filed lawsuits against the nursing homes after their deaths, but the nursing homes tried to force the families into arbitration under signed arbitration agreements. The Kentucky Supreme Court previously ruled that nursing home residents had not explicitly allowed their representatives to enter into arbitration agreements, and these agreements were not binding as a result.
The nursing homes in the case argue that states cannot place more of a burden on the creation of arbitration agreements than they would on creating any other contract. Long-term care providers contend the decision “poses a substantial threat to the long-term care industry at a time when demographic trends dictate that provision of long-term care could become increasingly important.” They say the Federal Arbitration Act and federal policy that favors arbitration preempt state laws like Kentucky’s. They argue the FAA was intended to make arbitration agreements equally as enforceable as any other contract, unless there are grounds that invalidate them just as in any other contract.
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