Nursing Homes Exploit Arbitration Loopholes to Avoid Accountability
When families trust a nursing home to care for an aging loved one, they expect compassion, safety, and professionalism, not hidden clauses designed to protect corporate profits. Yet across Arizona and the nation, nursing homes are increasingly using forced arbitration agreements as a legal loophole to dodge responsibility for abuse and neglect.
How Forced Arbitration Hurts Vulnerable People
Buried deep within admission contracts, forced arbitration clauses require families to settle disputes through private arbitration rather than in court. These secret proceedings favor nursing home corporations, keeping evidence and outcomes hidden from public view. Unlike a jury trial, arbitration decisions are typically final, and families have limited rights to appeal.
In theory, arbitration is meant to resolve disputes quickly. In reality, it’s a shield for negligence. Corporations pick the arbitration company, set the rules, and often refuse to pay fees or delay proceedings, effectively preventing families from ever getting their day in court.
Case Example: When Fine Print Turns Deadly
The story of 98-year-old Vera Plares illustrates the devastating consequences of these hidden clauses. Vera, a resident of Mission Skilled Nursing in California, was attacked by her roommate, someone the facility knew had a history of violence. After her death, the nursing home tried to move the case into arbitration. The problem? The arbitration agreement was buried inside a 60-page admissions contract that Vera — bedridden, with dementia, limited English skills, and only a fourth-grade education — was asked to sign in about 20 minutes, without family or legal counsel present.
A judge ultimately ruled the agreement “unconscionable,” meaning it was so one-sided that it was unenforceable. But the nursing home is still appealing, showing how far facilities will go to avoid accountability, even in cases involving clear negligence and preventable tragedy.
Forced Arbitration is Corporate Immunity by Design
According to a 2023 report from the American Association for Justice, corporations have found “new” ways to make forced arbitration even more biased, such as:
- Forcing consumers into arbitration even when no valid contract exists.
- Adding extra “pre-dispute hurdles” to reject claims early.
- Refusing to pay arbitration fees to stall cases.
- Changing rules or providers mid-dispute.
- Grouping and dismissing cases en masse to delay resolution indefinitely.
These tactics make it nearly impossible for families to win. In fact, studies show consumers are more likely to be struck by lightning than receive a monetary award in forced arbitration.
How Arizona Families Can Hold Nursing Homes Accountable
Forced arbitration clauses are stripping seniors and their families of their rights. Lawmakers must act to ban these clauses in nursing home contracts, just as Congress did for sexual assault and harassment claims in 2022. But while reforms are debated, families and advocates can still act to protect vulnerable residents.
Federal law makes clear that nursing homes cannot require arbitration as a condition of admission. If an admissions coordinator pressures you to sign, you can refuse, and the facility must still admit your loved one. Even if you sign, you have 30 days to rescind the agreement in writing.
Abuse thrives in silence; your voice could be the one that stops it. If you suspect abuse or neglect, speak privately with the older adult and offer to help. Every state has an Adult Protective Services (APS) office that investigates elder abuse, and you can also use the Eldercare Locator to connect with the right agency. Or families can call the confidential Institute on Aging’s Friendship Line to confide in a trusted individual.
If your loved one has suffered abuse or injury in an Arizona nursing home and you wish to discuss the specifics of your case, contact us today for a free consultation with an experienced personal injury lawyer at Bache Lynch Goldsmith & Mendoza.