The U.S. Supreme Court said they were denied the right to sue for signing contracts with arbitration rules. It was said that contracts written by retirement homes should be respected. Cases would be decided by arbitrators, not impartial jurors and not impartial judges. Many arbitration clauses in contracts define the arbitration company to be used. These arbitration companies know which companies they act as arbitrators and know that their revenues depend on the companies` satisfaction with their decisions. If they don`t, companies put someone else in the contract to be the arbiter. Sounds like it`s “the fix is in”? He surely does it because he is. Studies have shown that some arbitrage companies come out in favor of companies 90% of the time. A mandatory arbitration clause in a care home contract requires that any dispute between a care resident`s family and the care home be submitted to mandatory arbitration, with the results of the arbitration proceedings remaining confidential.
Like many groups, we do not believe that the timing of admission to a nursing home is conducive to informed decision-making on such agreements. Admission to nursing homes is usually a time of crisis for individuals and their families; The resident is in an altered state, the choice of care homes can be very limited, and the resident and family have no idea what kind of dispute might be bound by an arbitration clause in the future. There are pros and cons to an arbitration procedure, but only after a dispute has arisen can these pros and cons be fully weighed and an informed and voluntary decision can be made. . . .