Use Power
of Attorney clause to defeat Mandatory Arbitration Agreements?
Warning:
Many Nursing Homes are now "sneaking" mandatory arbitration
agreements into documents unsuspecting residents have to sign
upon admission.
Arbitration agreements present potential benefits as well as drawbacks.
The "rationale" promoted by Insurors for using arbitrations
are usually two fold: (1) they are cheaper than a lawsuit, and (2
) they are faster. Offsetting those potential advantages is the
limitation placed on "discovery" that arbitrations often
impose. Since admission arbitration agreements deprive ones
access to a jury of peers and almost all discovery, they have a
potential limiting effect on the ability of an injured resident
to effectively prosecute a claim for negligence or wrongful death.
Arbitrations without discovery would impair an injured residents
ability to prove wrongdoing on the part of the Nursing Facility.
They are not always fast. Unscrupulous defense lawyers can delay
the process by refusing to agree on the selection of an arbitrator
as well as the time and place for the hearing. Another consideration
you must consider is that the discovery process afforded by arbitrations
is limited. Many arbitration agreements allow only limited discovery.
If your case is complex, any limits on discovery can jeopardize
your case. This could restrict the rights of a resident suffering
an injury or wrongful death from developing the necessary evidence
to prove a claim against the Nursing Facility. Some individual Arbitrators
get most of their business from large Nursing Home chains and insurance
companies and insurance defense firms so they might be reluctant
to order a significant decision against a Nursing Home for fear
that they won't get future business from them. So selection of a
fair and impartial Arbitrator is important.
If an arbitration agreement is not for you: One way to defeat
the increasing practice by Nursing Homes of sneaking mandatory pre-injury
arbitration agreements in their admission documents is to arm residents
in advance with a properly worded Power of Attorney document as
part of their estate plan prior to going into a long term care facility.
The objective would be to withhold from the residents health agent
any power to sign away their rights by signing such a document at
the time of the Nursing Home admission and before any wrong has
been committed. The wording in the Power of Attorney would not necessarily
deprive the resident of the choice to submit to arbitration at a
later date, it would just prevent his health care agent from eliminating
the option of a lawsuit at the admission stage. That is, Arbitrations
could be chosen ONLY after an injury had occurred; they could NOT
be entered into prior to an injury or at the time of the admission
to a nursing facility. It would be up to the resident or their representative
to decide later whether to file suit or go to arbitration. In any
event reserving the right to file suit will afford the resident
an opportunity for discovery without which success at an arbitration
would be problematic. After discovery was completed, the residents
agent could always consider the risk/reward of an arbitration proceeding.
Those are the facts: You decide. You might want to include this
protective clause in your power of attorney. Get your Power
of Attorney form here!
An Attorney
will speak with you now at 617-479-4300
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