A nursing home arbitration agreement does not necessarily stop a lawsuit from being filed. Residents and their families may still potentially initiate claims in court. What follows may become a significant preliminary phase of litigation involving questions about contract formation, agency authority, procedural compliance and the scope of the signed provision.
These disputes can expose weaknesses in admission procedures long before allegations concerning resident care are decided. Working with a skilled legal team can help those involved examine an admission record and determine whether filing a motion to compel arbitration supports an organization’s broader litigation strategy.
What happens when a nursing home is sued despite an arbitration agreement?
After receiving the petition, the defense must determine whether an arbitration agreement exists and whether it covers the claims asserted. If enforcement is appropriate, the facility may file a motion to compel arbitration and request that the court stay or dismiss the pending proceedings.
A nursing home has the initial burden of showing that the parties formed a valid agreement and that the dispute falls within its scope. The opposing party may then raise contract defenses or argue that particular parties and causes of action are not covered.
This preliminary dispute can require substantial evidence. The court may review:
- The complete admission agreement
- Electronic signature records and audit trails
- Powers of attorney or guardianship orders
- Witness testimony from admission personnel
- Documents showing how the agreement was presented
- Records identifying the capacity in which each person signed
A litigation team should secure these materials immediately. Missing records or conflicting employee accounts may prevent a facility from proving contract formation.
The existence of an arbitration provision should be investigated at the outset of a concern. Early review can more effectively allow a defense team to decide whether to seek enforcement before taking positions inconsistent with arbitration.