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Court of Appeals considers whether an arbitration agreement is binding.

On October 6, 2009, the Maryland Court of Appeals heard arguments of whether a nursing home patient must arbitrate her claim of fraud.  Specifically, Ms. Addison entered into a contract with her nursing home which requires that any “professional service” dispute would be arbitrated.  She alleges that the nursing home committed fraud by failing to timely filing a Medicaid application, which resulted in the nursing home charging her an additional $70,000 in professional fees.

Arbitration is a form of alternative dispute; however, it is different than mediation and collaborative law.  Both mediation and collaborative law are alternative dispute resolutions processes that if a resolution is not obtained, then a party can litigate their dispute.  Further, mediators are third party neutrals who are there to assist the parties in reaching a settlement, and not to act as judge and jury.  In mediation, the collaborative lawyers act as advocates for their clients, whose ultimate goal is reaching a resolution.

However, in arbitration, there is trier of fact and law, whose decision is often final.  If a party is dissatisfied with the arbitrators decision, they have no judicial recourse as these contracts require binding arbitration.  

Arbitration provisions have moved from commercial contracts to ordinary consumer contract and employment contracts.  As consumers or employees, we must concede to these provisions.  Specifically, many cell phone companies and credit card companies require binding arbitration  if there is a dispute.  What is more concerning to many legal professionals who represent employees are the number of employee contracts that require binding arbitration for disputes.  While employers argue that this is a faster process that will help reach a quicker settlement, employees have very little bargaining power to reject these provisions.  Further, the employer selects the arbitrator.

Timothy J. Mummert, P.A. provides two types of alternative dispute resolution services: mediation and collaborative law.  We also review contracts with arbitration provisions and can represent clients in an arbitration proceeding.

Anne Arundel County | 808 Landmark Drive Suite 223A | Glen Burnie, Maryland 21061 | Phone: 410-766-1100 Fax: 410-766-8880
Located off I-97 Quarterfield Road Interchange | Stop on the Old Baltimore Railroad Line.
Howard County | 10015 Old Columbia Road Suite B215 | Columbia, MD 21046 | Located Off of Route 32. | Phone: 443-832-4365

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