U.S. Supreme Court questions validity of arbitration agreements for nursing homes

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The U.S. Supreme Court on Wednesday questioned the validity of arbitration agreements used by nursing homes in a case involving Kindred Healthcare.

The justices recently ruled in favor of arbitration agreements in two separate cases but they appeared to take a more critical approach to the practice when questioning Andrew Pincus, a lawyer representing Kindred Healthcare.

"The context here seems different from the arbitration cases that we've had in recent years," said Supreme Court Justice Samuel Alito. "This doesn't involve an arbitration about the amount that you were charged for your cable bill or for your telephone bill. This involves a situation where an elderly person needs care."

The cases the Supreme Court ruled in favor of arbitration agreements involved technology companies like Direct TV, not people. This appeared to be an important distinction for the court, said Imre Szalai, a professor at Loyola University New Orleans with an interest in arbitration agreements.

“(The justices) were more aggressively searching for a reason to favor the little guy,” Szalai said. 

Nursing home arbitration agreements increasingly have drawn scrutiny as a number of lawsuits challenging the practice make their way through the courts, and judges more often are striking down the practice.