$754,431 Arbitration Award Upheld

The Las Vegas Sun had an interesting article about the the Nevada Supreme Court's correct decision to upheld an arbitration award of $754,431 against the Manor Health Care Center in the negligence care of a patient in Las Vegas.

The court upheld the finding of an arbitrator that the standard of care was violated in the care of Edward Monsour.  Monsour died while in the care of the nursing home. The surviving children and the estate filed suit against the center. Both sides agreed in 2008 to binding arbitration before retired District Judge Stephen Huffaker.

Huffaker ruled the nursing home failed to provide the appropriate care mandated by skilled nursing home rules; that it did not keep accurate records of the care and “through neglect and recklessness, failed to provide adequate care, causing pain and suffering to both the deceased and his family.”  Huffaker rejected the wrongful death claim filed by the children.

Manor Health Care appealed but District Judge Timothy Williams backed up the arbitration award.

The Supreme Court rejected the argument of the health care center that the arbitrator wrongfully doubled the amount of certain damages.

The court said there is no evidence that Huffaker knew and disregarded the law in the handling of these claims.

 

Arbitration Agreement not enforced.

In Peterson v. Residential Alternatives of Illinois, Inc. , No. 3-09-0743 (June 7, 2010) Peoria Co. (WRIGHT), the 3rd District reversed the circuit court’s dismissal of the case based on an arbitration agreement.  In Peterson, the nursing home had the legal representative sign two contracts on the same day--one for nursing serives and one an arbitration agreement waiving Plaintiff's constitutional right to a jury trial.  The Court held:

 

"At the time of their agreement pertaining to nursing home care for Terhorst, the parties could have easily utilized terminology requiring arbitration, but they did not incorporate this language into the nursing home care contract. In fact, the seven-page nursing home care contract, dated November 29, 2006, specifically states that the nursing home care contract consists of seven pages. Within those seven pages, the nursing home care contract does not restrict litigation to nonjury trials or require arbitration.

We construe this silence as deliberate, intended, and consistent with both existing case law at the time of the agreement and the provisions of the Act (210 ILCS 45/3-606, 3-607 (West 2006)). Based on the circumstances of this case, we conclude that the conspicuous absence of language requiring arbitration constitutes "a contrary contention" that defeats defendant's request for this court to construe both documents executed on the same date as one agreement. See Sandra Frocks, Inc. v. Ziff, 397 Ill. at 504."

The Court concluded: " The case law provides that an enforceable contract must be premised on language that is definite and certain as to all essential terms. Academy Chicago Publishers v. Cheever, 144 Ill. 2d 24, 30 (1991). Thus, we conclude the Agreement does not contain a clearly expressed intent to arbitrate controversies arising out of the separate nursing care contract."

 

Arbitration Agreement not enforceable

The Mississippi Supreme Court recently ruled in Adams Community Care,Center L.L.C. v. Reed   against one of the more ridiculous positions that the nursing home industry has put forth in arbitration disputes, the third party beneficiary argument even when a valid arbitration agreement doesn't exist. See Opinion here.

The Court ruled that the son did not have authority to bind  his mother's claim to arbitration:

"To determine whether there is a valid arbitration agreement, we apply the law of contracts. See Grenada Living Ctr., LLC v. Coleman, 961 So. 2d 33, 36-37 (Miss. 2007).  The elements of a contract are “(1) two or more contracting parties, (2) consideration, (3) an agreement that is sufficiently definite, (4) parties with legal capacity to make a contract, (5) mutual assent, and (6) no legal prohibition precluding contract formation.” Id. at 37. At issue is element four, whether James or Larry Wesley had the “legal capacity” to enter into the admissions agreement with ACNC which contained an arbitration provision.

ACNC argues that James and Larry Wesley had apparent authority because they represented to the nursing home via DeLisa Smith that each was the responsible party for Annie Reed. In order to recover under a theory of apparent authority, the claimant must put forth “sufficient evidence” of “(1) acts or conduct of the principal indicating the agent’s authority, (2) reasonable reliance upon those acts by a third person, and (3) a detrimental change in position by the third person as a result of that reliance.” Eaton v. Porter, 645 So.2d 1323, 1325 (Miss. 1994) (emphasis added). After reviewing the record, we find that ACNC has failed to put forth any evidence of prong one; therefore, the Court need not address prongs two and three.

For a third-party beneficiary to exist, there must first exist a valid contract executed by one with “legal capacity” to enter the contract. See Grenada Living Ctr., LLC v. Coleman, 961 So. 2d 33, 36-37 (Miss. 2007). ACNC has failed to put forth any evidence of James or Larry Wesley’s legal capacity to execute the admissions agreement.

 

 

Taking Responsibility

Boston Herald had a great article about a family's attempt to learn the truth behind a document a resident allegedly signed while suffering from delusions and memory loss.  They hope to shed light on what she called an “outrageous and deceptive” practice.  Having demented residents sign their right to a jury trial away.  This is a tragic story that I hear all the time.  Resident clearly gets hurt by negligence of facility.  The facility, instead of taking responsibility, tortures the family by ridiculous legal machinations such as arbitration, health courts, malpractice tribunals.  This family has waited years for closure.

John J. Donahue died after suffering injuries at a Brockton nursing home in 2005.  Donahue, a paralyzed retired railroad engineer, spent the final 46 days of his life being shuffled between nursing homes and hospitals following an eye injury he suffered at Embassy House, Hoey said. On Sept. 5, 2005, Donahue’s left eye was gouged by a metal safety hook on a machine an employee was using to move him from his bed. Two people were supposed to operate the machine, called a Hoyer lift, per facility policy, according to a state investigation on the incident. The state Department of Public Health investigated Sept. 21, 2005, and found the allegation of neglect to be valid. The certified nursing assistant who operated the Hoyer machine alone was fired.

He was taken to the hospital more than 15 hours later, where his eye was removed. Donahue died weeks later of sepsis causing blood clots and organ failure. Hoey said experts will testify at trial that the eye trauma placed Donahue in a compromised state, which made him more susceptible to disease and infections.

Two years later, Owens filed a lawsuit alleging the nursing home’s negligence led to her father’s health decline, and in turn, his death.  The nursing home claimed that Donahue had signed an arbitration agreement in 2003, when he was 91, waiving his right to a trial if he was injured or killed.

Arbitration agreements are becoming more common at nursing homes and they are costly and time-consuming to contest, said Donahue’s attorney, David Hoey of North Reading.  Hoey said he fought the alleged agreement for two years, until the Court held the agreement was void based on testimony and records from staff at Embassy House Skilled Nursing and Rehabilitation Center in Brockton.

In December 2003 - the month Donahue signed the agreement - staff noted that Donahue made “confused, depressed (and) delusional statements” and showed “delusional ideation,” according to the February 2009 Plymouth Superior Court order signed by Judge Charles J. Hely. Hely ruled that Donahue was “unable to act in a reasonable manner” on the arbitration contract and that Embassy House “had reason to know of this significantly impaired condition.”

On Feb. 9, a Superior Court medical tribunal cleared the case to go forward to trial.  In Massachusetts, medical malpractice lawsuits must be heard by a tribunal before going to trial.

Arbitration decision in Colorado

McKnight's had an article about a decision in Colorado regarding the enforcement of an arbitration clause in a nursing home case.  The Colorado court ruled that a healthcare proxy does not have the authority to sign an arbitration agreement on behalf of a nursing home resident.  Under Colorado law, a healthcare proxy is only empowered to make medical decisions on behalf of another, including “provision, withholding, or withdrawal of any health care, medical procedure, including artificially provided nourishment and hydration, surgery, cardiopulmonary resuscitation, or service to maintain, diagnose, treat, or provide for a patient's physical or mental health or personal care,” the Bureau of National Affairs reported.

In the case of Lujan v. Life Care Centers of America, Colorado, Alvin Lujan signed an arbitration agreement, waiving jury trial rights, when admitting his mother, Estella Lujan, to the Life Care Centers of America nursing home. She died three days later, and a wrongful death claim was filed against the facility. Life Care Centers argued that admission to a nursing home is a medical decision and, therefore, the Colorado law applies.  But the Colorado Court of Appeals determined that the signing of an arbitration agreement does not fall under the specific definition of the authorities given to a healthcare proxy. As a result, the Lujan family had the right to sue the facility.

In October, the Nebraska Supreme Court arrived at a similar decision regarding the roll of patient surrogates
 

Mandatory arbitration denied in Pa.

Attached is an opinion from Erie County, Pa.  The plaintiffs were represented by Christina Nacopoulos, Esq. She did a great job for her clients.  The Court rejected Defendants' efforts to remove negligence per se, corporate and punitive claims.   The Court denied arbitration and  refused to submit the matter to arbitration ruling that the decedent’s family was not a party to any arbitration agreement and thus would not be bound by it.   The Court also denied Defendants' outrageous request for sanctions.  Defendants were attempting to sanction the family for trying to assert their consitutional right to a jury trial by challenging the manadatory arbitration clause hidden in the admissions contract.

 

 

Arbitration Victory in Nebraska

McKnight's had an article about the recent Nebraska Supreme Court decision denying the nursing home's motion to compel arbitration.   See Order here.  This is a big victory for residents and their families.

"Beverly Hallmark knew of Manda’s limited ability to understand these documents, or she would not have been asking her son Frank to sign them for her. Nothing in the record suggests that a reasonable person should have expected an arbitration agreement to be included with admission documents for a nursing home. So Beverly Hallmark was not justified in relying solely on Manda’s authorization of Frank to sign admission papers as apparent authority to bind her to an arbitration agreement."

 

Mandatory Arbitration in Nursing Homes

The Daily Record had an article about attorney F. Paul Bland, who represents a neglected nursing home resident, urging Maryland’s highest court to let her take her fraud claims against a Baltimore nursing home to trial, rather than to arbitration as the health care facility wants. Addison, who suffered a stroke in September 2005, says the nursing home delayed filing her Medicaid application so it could continue charging her a higher daily rate for several months.  The delay eventually cost her more than $70,000. She also alleged that a nursing home employee put her in touch with people who tried to buy her home for far less than its value.

“Ms. Addison should be permitted to have this trial go forward while she is alive,” he told the Court of Appeals on behalf of his client, Beulah Addison.  A circuit court judge ruled in 2007 that Addison could not be forced to arbitrate her claims, but his decision was reversed last year by the Court of Special Appeals.

Lochearn Nursing Home LLC’s lawyer, Melvin Sykes, defended that action. Bland, though, argued that the Court of Special Appeals should never have heard the case, because the judge’s ruling was not subject to appeal under Maryland’s laws of civil procedure.

The dispute has spurred interest from groups who oppose arbitration provisions in consumer contracts, saying they compel unwary purchasers into forfeiting their right to their day in court — a “sacrifice [that] falls particularly hard on economically vulnerable populations,” according to the Baltimore-based Public Justice Center.

“Mandatory pre-dispute arbitration agreements that were once confined to sophisticated commercial entities are now routinely imposed via form contracts on consumers and employees who often have little bargaining power and few alternatives,” C. Matthew Hill wrote in the Public Justice Center’s brief to the Court of Appeals. Joining the brief were the Maryland Employment Lawyers Association, Maryland Consumer Rights Coalition Inc. and the National Association of Consumer Advocates.


 

Admission Contracts

National Senior Citizen Law Center does a great job analyzing and sharing information about long term care facilities.  Recently, they did a study on nursing home admission agreements, along with an accompanying consumer guide. The link to the material is available here.   The study looks at unfair admission contracts that have arbitration clauses, personal guarantees, and other unfair trade practices.  Everyone who plans on researching options for their loved ones should get to know this website.
 

AAA's Position Statement on Arbitration

Poliakoff & Associates, P.A., is one of South Carolina’s most respected and distinguished law firms. The Poliakoff firm began nearly 60 years ago by three attorney brothers: Matthew, J. Manning, and Bernard. With a history of believing the justice system...More...