Last updated: May 2026

Nursing Home Arbitration Agreements: What Families Need to Know

Many families discover — only after a loved one is seriously injured — that they signed an arbitration agreement when the resident was admitted to the nursing home. The facility then uses that agreement to argue the family cannot sue in court.

If this has happened to you, do not assume your legal options are gone. Arbitration agreements in nursing home cases are frequently challenged — and frequently thrown out.

Call 866-972-0125 for a free consultation. No fee unless we recover for you.

What Is a Nursing Home Arbitration Agreement?

A nursing home arbitration agreement is a contract, typically signed at admission, in which the resident or their family agrees to resolve any future disputes through private arbitration rather than through the court system.

In plain terms: the nursing home is asking you to give up your right to a jury trial before anything has gone wrong.

These agreements are common. They are often buried in a thick stack of admission paperwork. Families sign them under time pressure, without understanding what they are giving up — or sometimes without realizing they signed one at all.

Why Nursing Homes Use Arbitration Agreements

Nursing homes push arbitration agreements for one reason: arbitration tends to favor them.

In arbitration, there is no jury. Cases are decided by a private arbitrator — often one with ties to the industry. Proceedings are confidential, so facilities avoid public accountability. Awards in arbitration are typically lower than jury verdicts, and the process is harder for families to navigate without experienced legal help.

Arbitration is not a neutral alternative to court. It is a system designed to limit a facility’s exposure when something goes wrong.

Can a Nursing Home Arbitration Agreement Be Challenged?

Yes — and they are challenged successfully on a regular basis.

Courts in Tennessee, Illinois, Georgia, Kentucky, and across the country have thrown out nursing home arbitration agreements on a variety of grounds, including:

• The agreement was signed by someone without authority to waive the resident’s rights. A family member, spouse, or adult child generally cannot sign away a resident’s right to a jury trial unless they hold a valid power of attorney that specifically authorizes waiving legal rights. If the agreement was signed by anyone other than the resident, it may not be enforceable.
• The resident lacked capacity to sign. If the resident had dementia or was otherwise cognitively impaired at admission, the agreement itself may be void.
• The agreement was procedurally unfair. Courts look at whether the agreement was presented fairly — whether families had a real opportunity to read and understand it, whether they were told signing was optional, and whether the terms were explained.
• The agreement was substantively unconscionable. Some arbitration agreements contain terms so one-sided that courts refuse to enforce them.
• Federal regulatory issues. The federal government has gone back and forth on rules governing nursing home arbitration agreements. Depending on when the agreement was signed and how it is structured, federal regulations may affect its enforceability.

Every case is different. Whether an arbitration agreement is enforceable depends on the specific language of the agreement, the circumstances under which it was signed, and the law of the state where the facility is located.

What to Do If a Nursing Home Cites an Arbitration Agreement

If you have contacted a nursing home about a serious injury or death and the facility — or its lawyers — has pointed to an arbitration agreement, take the following steps:

1. Do not assume the agreement is valid. Many are not. Do not walk away from a serious case without speaking to a lawyer first.
2. Get a copy of everything that was signed at admission. Request the full admission packet, including any arbitration agreement. You are entitled to this.
3. Note who signed the agreement and when. Was it the resident? A family member? Was the resident already cognitively impaired at that point?
4. Contact an experienced nursing home neglect lawyer as soon as possible. The enforceability of an arbitration agreement is a legal question that requires careful analysis. An attorney can review the agreement and advise you on your options.

The Higgins Firm Has Argued Nursing Home Cases at the Appellate Level

Arbitration agreements are not the only way nursing homes try to avoid accountability. Facilities and their defense lawyers are experienced at using procedural arguments to limit or eliminate claims before they ever reach a jury.

The Higgins Firm has litigated nursing home cases at the appellate level and before the Tennessee Supreme Court. We understand how facilities defend these cases — and we know how to challenge the tactics they use to avoid responsibility.

If you are facing an arbitration agreement in a nursing home case involving serious injury or wrongful death, we can review it and tell you honestly what your options are.

Does an Arbitration Agreement Apply to Wrongful Death Claims?

This is one of the most contested questions in nursing home litigation, and the answer varies by state.

In some states, courts have held that a wrongful death claim belongs to the surviving family members — not the deceased resident — and that a resident cannot sign away rights that belong to others. Under that reasoning, an arbitration agreement signed by the resident would not bar a wrongful death lawsuit brought by the family.

In other states, courts have reached the opposite conclusion. The enforceability of an arbitration agreement in a wrongful death case depends on the specific facts and the law of the state where the case arises.

If your loved one died in a nursing home in Tennessee, Illinois, Georgia, or Kentucky and the facility is pointing to an arbitration agreement, speak with a lawyer before assuming the claim is blocked.

Arbitration Agreements by State

Tennessee

Tennessee courts apply contract law principles to nursing home arbitration agreements and have found many unenforceable — particularly when signed by someone other than the resident without proper legal authority. Tennessee has an active body of case law on this issue.

Illinois

Illinois courts scrutinize nursing home arbitration agreements carefully. Agreements signed by family members without proper power of attorney authorization have been challenged successfully in Illinois.

Georgia

Georgia courts evaluate nursing home arbitration agreements under general contract and unconscionability principles. The circumstances of signing and the clarity of the waiver language are both relevant to enforceability.

Kentucky

Kentucky has seen significant litigation over nursing home arbitration agreements. Courts have examined whether family members had authority to bind the resident and whether the agreements were fairly presented.

Frequently Asked Questions

Did I sign away my right to sue the nursing home?
Not necessarily. Arbitration agreements in nursing home cases are challenged and thrown out regularly. Whether the agreement is enforceable depends on who signed it, under what circumstances, what authority they had, and the specific language of the agreement. Do not assume your rights are gone without speaking to a lawyer.

Can a family member sign an arbitration agreement on behalf of a nursing home resident?
Generally, a family member can only waive a resident’s legal rights if they hold a valid power of attorney that specifically authorizes that kind of waiver. A general power of attorney may not be sufficient. If a family member signed without that authority, the agreement may not bind the resident.

What if my loved one had dementia when they were admitted?
If the resident lacked the cognitive capacity to understand and sign a contract at the time of admission, the arbitration agreement may be void. This is a fact-specific analysis that requires review of the resident’s medical records and the circumstances of signing.

Is arbitration always bad for families?
Arbitration is generally less favorable for families than a jury trial. There is no jury, proceedings are private, and outcomes tend to be lower. That said, the goal is to challenge the agreement and keep the case in court where possible.

How much does it cost to hire a lawyer to challenge an arbitration agreement?
The Higgins Firm handles nursing home neglect cases on a contingency fee basis. There is no upfront cost and no fee unless we recover for you. This includes the work of evaluating and challenging arbitration agreements.

What is the difference between arbitration and mediation?
Mediation is a voluntary process where a neutral third party helps both sides reach a settlement. Either side can walk away. Arbitration is a binding process — the arbitrator’s decision is final and enforceable, like a court judgment. Nursing home arbitration agreements require binding arbitration, not mediation.

Contact The Higgins Firm

If your loved one was seriously injured or died in a nursing home and the facility is using an arbitration agreement to block your claim, contact us. We will review the agreement and give you a straight answer about your options.

The Higgins Firm handles serious nursing home neglect and abuse cases in Tennessee, Illinois, Georgia, and Kentucky. Free consultation. No fee unless we recover for you.

Call 866-972-0125 or contact us online.