Over the past few years, Maryland nursing home arbitration agreements have become very common. Essentially, an arbitration agreement is a contractual term between the resident and the nursing home in which the parties agree that, in the event a claim arises, neither party will file a case in the court system. Instead, the parties agree that they will submit the case to an arbitration panel, which will then issue a binding decision.
The issues with arbitration are now well known, although that was not always the case. At first blush, arbitration does not necessarily seem like a bad thing because it can result in the quicker resolution of claims and may reduce the costs associated with litigating a case. However, studies have shown that, on average, the rulings of arbitration panels tend to favor the company over the individual. One reason for this is that the company selects the specific company that will conduct the arbitration.
Given the importance of a person’s right to access the court system, courts require that arbitration agreements clearly show the parties’ intent to waive their rights before an arbitration agreement will be enforced. Additionally, courts must determine that the arbitration agreement is written in good faith and treats both sides fairly. Courts have also rejected arbitration agreements in cases involving the survivors of those who signed the original contract, finding that the survivor was not a party to the contract.