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House Subcommittee Hears Testimony on Unfair Binding Arbitration Clauses

Lawmakers and consumers testified before a House subcommittee, calling for new legislation restricting the ability of companies to force customers into mandatory binding arbitration when disputes arise. The new legislation will help protect elderly access to the courts in cases against nursing homes. Congress is considering two different pieces of legislation that would restrict forced arbitration clauses contained in many of the nursing home contracts residents must sign in order to register. Congressman Henry Johnson has introduced the Arbitration Fairness Act, which will prevent all pre-dispute arbitration clauses could be considered “forced” due to economic and social needs. Representative Linda Sanchez has introduced the Fairness in Nursing Home Arbitration Act of 2009, which would nullify any clauses contained in admission agreements that prevent residents or family members from filing a nursing home negligence lawsuit. The problem is that arbitration clauses have become de facto mandatory in many nursing homes. Desperate families oftentimes sign anything in order to receive proper care for their loved one. Contact your Congressman today in order to support the nursing home legislation. To read more about the nursing home legislation, please click the link.