A Legal Victory For Nursing Home Residents. State Laws Can Supersede Federal Arbitration Act

Some court decisions leave lots of room for future generations of law school classes to debate the subtleties of the Judge's wording.  Yet, other times the the court's action--without rendering an opinion-- can have equally powerful results. What could I possibly be inarticulately blabbering about?  

June 1st marked the deadline by which the U.S. Supreme Court could grant review of an Illinois Appellate Court decision nullifying nursing home arbitration arbitration agreements. Instead, the court decided to leave the Appellate decision untouched-- in essence giving its stamp of approval to a holding striking an appellate court decision that invalidated mandatory arbitration agreements in nursing home negligence cases.

In Sue Carter v. SSC Odin Operating Company, LLC, (885 N.E. 2d 1204, 319 Ill.Dec. 524 (2008), the daughter of a nursing home resident brought a wrongful death and survival cause of action under the Illinois Nursing Home Care Act against the nursing home where her mother was a resident.  Despite the fact that Ms. Carter executed a 'Health Care Arbitration Agreement' on her mothers behalf when she admitted her mother to the facility, the Appellate Court ruled that state law preserved her right to a jury trial. 

The nursing home operator appealed the Appellate Court decision, claiming the mandatory arbitration clause, pursuant to the Federal Arbitration Act, should overrule any state law as the federal legislation should take precedent.

Consequently, nursing home arbitration agreements in Illinois will likely be a thing of the past. Perhaps, this action by the court will dissuade other states from enforcing similar agreements.

Read more about this important case preserving nursing home resident rights here.

Nursing Homes Abuse Blog Posts On Arbitration Agreements

The Invalidity Of Nursing Home Arbitration Clauses

Are Trials Really That Important?

Michigan Court Strikes Nursing Home 'Arbitration Clause' And Allows Wrongful Death Case To Proceed In Court

AARP Joins Fight To Preserve Right To Jury Trial

The Loss Of Nursing Home Patients' Rights: New Illinois Appellate Court Decision Upholds Arbitration Clause In Negligence Cases

A recent Illinois Appellate Court decision may prove to be a major roadblock for injured nursing home residents who wish to pursue their case against the facility in court.  In Fosler v. Midwest Care Center II, Inc., the Illinois Appellate Court upheld the validity of mandatory arbitration clause signed by an injured nursing home resident's daughter at the time of her admission-- specifically saying that the Federal Arbitration Act (FAA) trumps the Illinois Nursing Home Care Act.

This is a dramatic shift in the way Illinois Court's have interpreted Illinois law.  Previously, it was widely held in Illinois that arbitration agreements-- where a dispute related to negligent care would be resolved via an arbitrator as opposed to a jury trial-- were invalid.  According to Fosler, this is no longer the case.

Illinois like other states had adapted its own laws to protect nursing home residents.  In Illinois, the Nursing Home Care Act specifically nullifies any arbitration provision of the admission agreement, supporting an injured resident's right to a jury.  According to section 3--606 of the Nursing Home Care Act, "[a]ny waiver by a resident or his legal representative of the right to commence an action under Sections 3--601 through 3--607, whether oral or in writing, shall be null and void and without legal force or effect." 210 ILCS 45/3--606.  The Act emphatically states that a person injured due to nursing home negligence was entitled to a jury trial.

Due to the strong language of the Nursing Home Care Act, many Illinois nursing homes chose to remove arbitration clauses entirely from new admission paperwork as they were generally considered to be worthless.  This is no longer the case.  If this decision remains good law, mandatory arbitration clauses will become commonplace in Illinois nursing homes and the landscape of nursing home litigation in Illinois will be forever changed-- in my humble opinion for the worse.

Nursing Home Arbitration Clauses

An arbitration clause takes the decision of how much money--- if any -- an injured party is receive out of the hands of a jury.  In an arbitration setting, one person (who is frequently pre-selected by a nursing home) determines the damages to be awarded to an individual or family.  In addition, many arbitration clauses specifically limit the amount an arbitrator may award to an injured party.

Resource

Marie Fosler, by Janice Saxton, Attorney-in-Fact v. Midwest Care Center II, Inc., d/b/a Fair Oaks Rehabilitation and Health Care Center, Brenna Kolk, and Tonya Nielsen, 08--L--147, Ill.App. (2nd Dist)