Mandatory Arbitration Suit in California

The California Association of Health Facilities has sued the California Department of Public Health and its director over the ability to use mandatory arbitration with nursing home residents.

The state has begun to enforce a regulation requiring homes to advise residents that may not wave their right to sue for violations of the California Patient’s Bill of Rights, the suit states that this is in conflict with the Federal Arbitration Act.

Many nursing home operators have found mandatory arbitration lowers their defense costs and limits the potential for obscene verdicts in malpractice allegations.

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