Arbitration Agreements: Are They Enforceable?

Few issues regarding skilled nursing facilities are as controversial as pre-dispute, binding arbitration agreements. Moreover, even fewer issues have been litigated as much as binding arbitration agreements. The Federal Arbitration Act (FAA), enacted by Congress almost a century ago in 1925, facilitates dispute resolution by having a neutral and objective third party render a decision on the disputed issue that “shall be valid, irrevocable, and enforceable” (9 U.S.C. §§ 1–16). Neither a judge nor jury is involved with an arbitration, which allows the parties to resolve their disputes in a fair, efficient, and cost-effective manner without the considerable expense and protracted time that litigation requires.