The New York Times has examined, in a series of articles, the problems with mandatory arbitration agreements in consumer contracts. The articles examine “… how clauses buried in tens of thousands of contracts have deprived Americans of one of their most fundamental constitutional rights: their day in court.”
The NY Times series discusses how consumers are often, unknowingly, forced to have their disputes heard by business-friendly arbitrators, without the benefit of courts or judges. As a result, the claim resolution may end with business biased results, without accountability through the justice system.
Unfortunately, nursing homes usually have arbitration clauses in their admission agreements. When the resident signs an agreement upon admission that has an arbitration provision, the resident agrees to give up their constitutional right to have a dispute decided in court, with a judge and jury. This arbitrator’s decision is final, binding, and with no right to appeal. Arbitration is expensive, with the arbitrator receiving between $400 and $1,000 an hour for his time. Also, studies have shown that arbitrators have a pro-business bias, and that consumers receive less money from arbitration awards, than through the court process.
It is illegal under California law to force a prospective nursing home resident to sign an arbitration agreement as a condition of admission. Also, the state requires that the arbitration agreement be separate and apart from the admission agreement. So, the best way to preserve your right to the judicial system is to not sign the arbitration agreement. Our financial powers of attorney do not give powers to the attorney in fact to sign an agreement for binding arbitration.
This information is not to be taken as legal advice, and you are encouraged to see your elder law attorney. At the Law Offices of Michael J. Young, at 1931 San Miguel Dr., Ste. 220, Walnut Creek, CA www.WalnutCreekElderLaw, 925-256-0298, lawyoung1@gmail.com we practice Elder Law and we help Baby Boomers, Seniors and families through their Elder Care Journey. We help families with long-term care planning, asset-protection plans, comprehensive estate planning, wills, trusts and powers of attorney. We also help Baby Boomers and families get their “Ducks in a Row” in order help them qualify for Medi-Cal and the VA Aid & Attendance Improved Pension benefit.