When someone is seeking admission into a Maryland nursing home, they will almost certainly be presented with a pre-admission contract. This contract goes over the rights and responsibilities of both the nursing home as well as the soon-to-be resident. In most nursing home pre-admission contracts, there is also an arbitration clause agreeing to forego the court system in lieu of arbitration in the event of a disagreement or lawsuit.
Arbitration clauses are generally enforced if they are entered into by the proper parties and are found to be within the constraints of the law. For example, some arbitration clauses have been invalidated because they are “buried” in the fine print of a lengthy contract with nothing indicating the significance of the rights the reader is giving up by signing the document.
Like all contracts, arbitration agreements must be validly entered into in order to be binding. This means that if a resident is found to have been incompetent, or is determined to have been forced to sign an agreement, the contract will not be enforced. A recent news article discusses a Kentucky case in which the court invalidated a nursing home arbitration contract because it was signed by the resident’s sister without the proper power of attorney.