Earlier this year in the case of Cecil v. Skilled Healthcare, the New Mexico Court of Appeals made a ruling that allowed a plaintiff's negligence and wrongful death lawsuit against a nursing home to proceed, rejecting a clause in the nursing home contract that mandated all claims be addressed only through arbitration. As a result of this ruling, the family of a man who died while in the care of the nursing home will be able to have their claims heard by the state court and potentially given the opportunity for a jury to find the defendants liable for the death of their loved one.
Arbitration Agreements in Nursing Home Contracts
Many nursing home residency agreements require a prospective resident to agree that any civil claims against the nursing home can only be resolved through arbitration. Arbitration is an alternative form of dispute resolution in which the parties agree to have their dispute heard by an arbitrator, which is a private party that takes the place of the courts. In arbitration, the parties argue their cases in a court-like environment, and the decision of the arbitrator is final and enforceable, as if it were a court order. If a plaintiff has agreed to an enforceable arbitration clause, he or she must file any claim with the arbitrator and follow the rules and procedures of the arbitrator.