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From Philly.com:
Patients hoping to get into nursing homes increasingly are signing away their rights to sue over poor care.
That's a problem, say lawmakers who are pushing legislation to make such agreements unenforceable.
The nursing homes argue that arbitration arrangements to which many families agree actually lead to dispute resolutions that are fairer than court cases. But legislators, supported by consumer-advocacy groups and trial lawyers, say families should not be giving away their ability to hold the homes accountable for poor care.
A Senate committee will hear today from the family of William Kurth, who fractured his hip and leg and contracted numerous pressure ulcers during his final months of life in a Wisconsin nursing home. When his family attempted to sue for negligence, a judge dismissed the case because Kurth's wife had agreed, as part of her husband's admission, to have all complaints go through an arbitrator.
The Senate panel, which is investigating the growing use of binding arbitration by nursing homes, says more than 100 lawsuits have been filed in the last five years challenging such agreements.
Arbitrators take into account federal, state and county laws when resolving legal disputes. Often, the parties are free to negotiate some of the ground rules for their case. The process has the advantage of being faster and less expensive for both parties. It also is confidential.
Few families are even thinking about the possibility that they might want to go to court when they admit their loved ones to nursing homes.
Kurth's wife, Elaine, was under extreme duress and on medication when she signed the papers that allowed her husband, a stroke victim, to stay at the nursing home, the family's attorney said.
Family members who will appear before Congress say the World War II veteran died at age 84 from infections that occurred because excrement and urine were not cleansed from his bedsores for days at a time. David Kurth of Burlington, Wis., says arbitration has become a shield for large corporations to hide behind and decrease the quality of care.
"It is economically more profitable to let people like my father suffer than to provide proper care," Kurth said in written testimony prepared in advance. "And now that our family is trying to hold the nursing-home corporation accountable for its actions, Kindred Care is trying to bury our case by forcing us into a mandatory, secret, and binding-arbitration process that they chose."
Dear Colleague,
One of our indelible rights is the right of a jury trial. Guaranteed by the Constitution, this right has been gradually ceded by citizens everyday as they purchase a new cell phone, buy a home, place a loved one in a nursing home, or accept a new job. Once used as a tool for businesses to solve their disputes, arbitration agreements have found their way into employment, consumer, franchise, and medical contracts.
The Federal Arbitration Act (FAA) was enacted as an alternative to resolve disputes between businesses on equal footing. Today, these agreements have entered the consumer level. In order to receive service, businesses have imposed mandatory pre-dispute arbitration agreements on consumers. Citing it as a cheaper, informal, expedited process, these contracts of adhesion leave consumers, employees, and small businesses at a disadvantage.
Ordinary Americans overwhelmingly do not support mandatory arbitration clauses when they are explained to them. However, millions of Americans have unknowingly received mandatory arbitration clauses in contracts for a wide range of consumer goods and services. Oftentimes, they are enforced without a signature, and are announced in hundreds of lines deep in fine print, written in dense legalese, often on the backside of a document or buried in a mailer along with other pieces of advertisements or solicitations. If and when a dispute does arise, high administrative fees, a lack of a discovery proceeding, and no meaningful judicial review of an arbitrator’s decision amount to a stacked deck against the consumer, making it harder for individuals to prevail.
Although states have tried to address this problem through their consumer protection laws, the courts have interpreted the Act to trump state laws leaving consumers very little recourse. This legislation would return the FAA to its original intention and omit consumer, medical, franchise, and employment agreements from these pre-dispute agreements. Americans are entitled to a trial by jury; pre-dispute mandatory arbitration agreements give only one side the upper hand.
Please become an original cosponsor of this important legislation.
Sincerely,
Henry “Hank” Johnson
Member of Congress
