When considering admission to a nursing home, long-term care facility, or any medical establishment in Georgia, one may encounter an arbitration agreement. This legal document can significantly affect how disputes are resolved, should they arise. Understanding the implications of signing such an agreement is crucial for making an informed decision.

What is an Arbitration Agreement?

An arbitration agreement is a contract in which parties agree to resolve disputes outside of the court system, through an arbitrator. This process may be described to you as “faster, more private, and less expensive than traditional litigation.” But it is important to know that signing an arbitration agreement waives any right you or a loved one may have to pursue a lawsuit before a jury. This is a crucial legal right that you should consider strongly before waiving.

Should You Sign an Arbitration Agreement in Georgia?

In Georgia, signing an arbitration agreement cannot be made a condition of residency in a nursing home. This means that even if you object to signing it, the facility must still admit you or your loved one. It’s important to note that while arbitration can offer benefits, it also means waiving the right to a jury trial, which can be a significant consideration for many. On average, a jury—through a verdict—will award significantly higher awards to a plaintiff than the award a plaintiff would receive at arbitration.

When is an Arbitration Agreement Invalid in Georgia?

An arbitration agreement may be deemed invalid in Georgia if it:

  • Is not commercially reasonable or is unconscionable.
  • Violates federal law by providing the facility with consideration beyond Medicaid payments for the resident’s care.
  • Is signed under duress or without the full understanding of the resident.
  • Is signed by someone who did not have the legal authority to execute such an agreement.

Moreover, recent changes in regulations require that arbitration agreements in long-term care facilities must not be a precondition for admission, and residents must be informed of their right not to sign. Additionally, residents have thirty days to rescind the agreement after signing.

Conclusion

Arbitration agreements can be complex and carry significant legal weight. It’s essential to consult with a legal professional before signing any such agreement. Understanding your rights and the specifics of Georgia law can help ensure that you make the best decision for yourself or your loved one. The attorneys at Hanson Fuller are experienced in invalidating arbitration agreements that you or a loved one may not have fully understood when signing. Regardless, Hanson Fuller can assist you in pursing your case through the arbitration process or all the way through to a jury trial.