20 May Can I Rescind a Signed Nursing Home Arbitration Agreement?
When entering a nursing home, there are a lot of documents that residents or family members must fill out. These documents often include legal terms and jargon that can be confusing and overwhelming to most people. One example of this is an arbitration agreement.
An arbitration agreement is a contract between parties that states they each give up the right to a trial by jury. Instead, they will have any disputes heard by a private arbitrator. Many times, residents and family members do not even realize what this means until an issue pops up and they cannot take their case to court. What happens then—can a nursing home resident cancel an arbitration agreement? Let’s take a closer look at this issue.
What is an arbitration agreement?
In the simplest of terms, an arbitration agreement is a clause in a contract that when signed, says both parties agree to settle any disputes outside of court. When a person signs an arbitration agreement, they sign away their right to a trial by jury.
You commonly see arbitration agreements in employment contracts, as well as contracts for things like cell phone and internet service.
The main purpose of an arbitration agreement is to resolve any issues the company faces outside of the courtroom. Then the company doesn’t have to deal with expensive court and lawyer fees. Instead, the company uses a trained arbitrator, who many times is a retired judge. The arbitrator acts as the go-between for the company and the person or persons with the complaint.
Arbitration discussions are generally held privately and act much like they would in court. Both the company and the complainant may each present their side of the argument, usually along with evidence and witnesses. Once that is complete, the arbitrator makes their decision, which is final and for the most part not appealable.
Colorado law allows for the use of arbitration agreements in nursing home admissions despite many widely recognized problems with that practice. Under Colorado law, however, a nursing home cannot deny admission to a resident if they refuse to sign an arbitration agreement.
Can you cancel or rescind an arbitration agreement?
When signed, an arbitration agreement is generally a binding legal contract. However, some situations may arise where a nursing home resident or their family members want to pursue legal action.
Clients regularly ask us how to revoke an arbitration agreement with a nursing home. Fortunately, under the Health Care Availability Act, a nursing home arbitration can legally be canceled or “rescinded” at any point within 90 days of signing it.
There are several different ways to rescind the agreement. But no matter how you revoke the arbitration agreement, it’s a good idea to have the person who signed it (or the heir of that person) send a written letter to the administrator of the nursing home. The letter should indicate that the arbitration agreement is canceled and void, and that the resident or family member rescind the agreement. After this letter is emailed and sent and the family should keep proof that it was sent, whether it went by email, fax, or mail.
If it has been more than 90 days, the agreement still may not be enforceable depending on the circumstances. For example, if a nursing home withheld admittance until you signed, that would likely void the agreement. There are other requirements surrounding obtaining an arbitration agreement, so if you have signed one and have questions about it, it’s best to contact a nursing home lawyer to evaluate your options.
Nursing Home Arbitration Assistance in Colorado
We frequently receive calls from clients who do not realize they signed an arbitration agreement upon entering a nursing home. We have also received complaints of residents and family members being pressured by nursing home staff to sign an arbitration agreement as a term of residency. While a nursing home may ask a resident to sign an arbitration agreement, they cannot legally make you sign it. Understanding your rights and whether you can cancel an arbitration agreement is important.
If you have questions on how to get out of an arbitration agreement with a nursing home, call Holland, Holland Edwards & Grossman, LLC today at 303-860-1331 or contact us online.
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