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Supreme Court Rules on Mandatory Arbitration

Lower courts can stay but not dismiss the claims

The Supreme Court Ruling

In May of 2024 the U.S. Supreme Court heard an appeal under Section 3 of the Federal Arbitration Act.  In Smith v. Spizarri, the Supreme Court held that trial courts do not have the discretion to dismiss a lawsuit simply because it involves a claim where the parties agreed to arbitration. Although this case involved an employment situation, “the ruling has significant implications for nursing home negligence cases” explains Virginia Nursing Home attorney Jeffrey J. Downey.

In an attempt to limit the rights of nursing home residents, many private nursing home chains use mandatory arbitration contracts in which the resident agrees not to file a lawsuit in Court. Many residents entering these facilities do not even understand they have signed such clauses which can appear in admission agreements that are often long and complicated.

Some U.S. courts have upheld mandatory arbitration clauses as being enforceable, in part because they reduce the burden on the court system.  Unfortunately, this is at the cost of a person’s individual rights to bring a malpractice case in state court.  The Law Office of Jeffrey J. Downey has been successful in challenging some of these agreements, but results vary from state to state. (https://www.jeffdowney.com/fairfax-circuit-court-invalidates-mandatory-arbitration-provision-in-nursing-home-admission-agreement/)

Virginia allows one to opt out of such a provision after 60 days of sustaining an injury or within 60 days of one’s appointment as administrator of the Estate. Given these time limitations, if you have a case in Virginia, you should contact a nursing home attorney as soon as possible to evaluate your opt out options. Both nursing homes and assisted living facilities are using these clauses to protect themselves from legal liability caused by the neglect of their residents. 

The Maryland Court of Appeals has issued some important rulings limiting the use of Mandatory arbitration agreements.  In the important case of Futurecare Northpoint v. Peeler, 229 Md.App. 108, 143 A.3d 191 (2016) the highest court in Maryland ruled that if a patient signs such an agreement and is later subject to wrongful death, the statutory beneficiaries (family members with rights to bring a claim) cannot be subject to the jury trial waiver.  Link (https://casetext.com/case/futurecare-northpoint-llc-v-peeler-1)

Spizarri was the right decision, explains nursing home attorney Jeffrey J. Downey.   Courts should not be able to dismiss a case simply because one or more of the parties are privy to a mandatory arbitration provision.  Sometimes the agreement is written for the local nursing home but does not include the parent company.  In such a situation, the case should be able to proceed against the parent company even if the Court upholds the arbitration agreement.   

Attorneys practicing in this area need to aggressively challenge arbitration agreements when they arise in a nursing home or assisted living cases.  Patients should be able to pursue malpractice cases based on the many adverse outcomes that can arise in such facilities including pressure wounds (bed sores) falls causing fracture, physical or sexual abuse, elopements, infections leading to sepsis, malnutrition, dehydration, and wrongful death.

Consumers also need to refuse to sign such agreements at the time of admission

Contact Our Law Firm To Discuss Your Claims

If someone you care about experienced injury or death due to nursing home or assisted living negligence and/or abuse, you should contact an experienced nursing home neglect attorney to protect your rights. Our office can advise you about your rights, identify whether there is an arbitration clause in the contract you signed, and help you get out of the agreement where the law supports your position.  

Free Initial Consultations | We Can Come To You | No Attorney’s Fees Unless We Win Your Case.  Licensed in Virginia, DC, and Maryland.

The Law Office of Jeffrey J. Downey

8300 Greensboro Drive, Suite 500

Mclean, VA  22102

Phone 703-564-7318 or fax: 703-556-7700

Email: jdowney@jeffdowney.com On the web at Jeffdowney.com