Supreme Court Rejects West Virginia Rule Barring Nursing Home Arbitration

In a per curiam opinion, the Supreme Court today reversed three consolidated decisions by the West Virginia Supreme Court of Appeals refusing to enforce pre-dispute arbitration agreements in nursing home contracts where a claim alleges negligence or wrongful death. The West Virginia high court had held that “as a matter of public policy under West Virginia law, an arbitration clause in a nursing home admission agreement adopted prior to an occurrence of negligence that results in a personal injury or wrongful death, shall not be enforced to compel arbitration of a dispute concerning the negligence.”

The Supreme Court summarily rejected that ruling, finding that “West Virginia’s prohibition against predispute agreements to arbitrate personal-injury or wrongful-death claims against nursing homes is a categorical rule prohibiting arbitration of a particular type of claim, and that rule is contrary to the terms and coverage of the FAA.” The Supreme Court remanded for reconsideration in light of AT&T Mobility v. Concepcion, instructing the West Virginia to consider whether the arbitration agreements “are unenforceable under state common law principles that are not specific to arbitration and pre-empted by the FAA.”

The case is Marmet Health Care Center, Inc. v. Brown.

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