Nursing Home Arbitration Agreements

There was a recent case in 2022 called CL SNF, LLC et al. v. Fountain. In this case, a man named Leroy Wiggins was admitted to a healthcare center by his aunt, Minnie Fountain. In 2014, Leroy was designated as mentally incapacitated, and his aunt Minnie was appointed his guardian. It was at that time he was put into skilled nursing. And, as an Atlanta nursing home neglect attorney who has won settlements as large as $225,000 in nursing home abuse cases can explain, Minnie signed an agreement on Leroy’s behalf.

Within this agreement, it was stated that there was an arbitration clause which mentioned that if Leroy’s guardian had any issues with his stay at the facility, those issues would go into arbitration. Additionally, the documents stated that Minnie was able to contact an attorney for help.

However, Minnie later filed a case stating the documents were never explained to her. More importantly, she stated that it was never made clear to her that she could contact an attorney to review everything nor was it made clear that signing those particular documents officially admitted Leroy into the facility. She also stated that during Leroy’s time at the facility, he was assaulted repeatedly by his roommate, and the facility did nothing to stop it. At first, the court ruled on behalf of Minnie, however the facility appealed that ruling.

In that second ruling, the appellate court reversed the trial court’s decision that the Arbitration Agreement was unconscionable. It held that the agreement’s scope was not as narrow as the trial court perceived and that the agreement did not preclude Fountain from pursuing any claims under Georgia’s Bill of Rights for Residents of Long-Term Care Facilities in arbitration​​​​.

The appellate court concluded that the mutual promises in the Arbitration Agreement constituted sufficient consideration, making it a valid contract​​​​.  The court agreed with the trial court that enforcement of the Arbitration Agreement was not prohibited by the federal Medicaid Act, as its execution was not a precondition for Wiggins’s admission to the facility​​​​.

“CL SNF, LLC v. Fountain” brings to light the critical aspects of arbitration agreements in nursing home settings and the importance of understanding and scrutinizing such agreements. When you sign that paperwork to admit your loved ones, there is a lot more in there than just their medical care.

There are often clauses such as the arbitration clause Minnie fought against which she was unaware of, and even though she was not familiar with it, it was still found to be a valid, legal clause. That is why it is extremely important to contact an attorney before admitting your loved one to any long term medical facility.

While long term facilities can be great places for those unable to care for themselves so that they receive proper medical treatment and their families can focus on being with them, the facilities also make mistakes and try to protect themselves.

Before you sign any paperwork, contact The Turnbull Firm so that we can review it. We will ensure that you understand everything presented in the paperwork so that there are no surprises and your loved one is fully protected should anything happen to them. In fact, we have won settlements as large as 2 million dollars in representing families like yours that struggled with nursing home abuse. Contact us today for more information.