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House of Representatives Weighs Proposal to Ban Mandatory Arbitration Clauses in Nursing Home Agreements

Recent legislation in the U.S. House of Representatives proposes banning mandatory pre-dispute arbitration clauses in nursing home agreements. The proposed Arbitration Fairness Act of 2011 would eliminate the requirement that all claims against the nursing home facility and its employees be brought in front of an arbitrator, instead allowing the individual to choose how they want to proceed after a dispute arises. The intent of the legislation is to ensure that nursing home residents are not unfairly deprived of their constitutional rights by requiring them to give up their "day in court" prior to a claim arising. The next step in enacting the Arbitration Fairness Act of 2011 is approval by the U.S. Senate. If enacted into law, arbitration must be agreed to by both parties to a nursing home action after the dispute arises, or the case will proceed through the court system.

See S. 987 (112th): Arbitration Fairness Act of 2011.

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