Court Refuses to Enforce Arbitration Agreement in Recent Nursing Home Case

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…

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