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Senate Judiciary Approves Fairness in Nursing Home Arbitration Act; Employment Next?

The Fairness in Nursing Home Arbitration Act was approved Thursday by the Senate Judiciary Committee.  The legislation (S. 2838) would bar the use of mandatory binding arbitration clauses in nursing home contracts.  It was approved by voice vote, though not before Republicans expressed concern about the potential cost of the bill and its retroactive application to existing contracts. The House Judiciary Committee approved a similar measure (H.R. 6126) earlier in the year.

Congressional Quarterly's CQ.com notes:

The committee action was a victory for trial lawyers who are seeking to curb mandatory arbitration clauses that have become a common feature of consumer contracts, as companies seek ways to avoid litigation.

Regular readers of this blog recognize this as just one of many legislative attempts to limit the use of pre-dispute arbitration agreements -- including the introduction of a similar bill banning the practice in employment contracts.

Point of Law.com has also been following this ongoing "attack on arbitration," and you can jump to their coverage of the issue via this post.

Posted on Friday, September 12, 2008 at 09:22AM by Registered Commenterworkplacehorizons.com in | Comments Off

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