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A state court in Ohio held that a separate, stand-alone arbitration agreement signed contemporaneously with a nursing home admissions agreement was not substantively unconscionable and therefore enforceable.
In Manley v. Personacare, No. 2005-L-174, 2007 WL 210583 (Ohio App. Jan. 26, 2007), Manley brought a negligence action on behalf of her late mother, alleging that Personacare's negligence resulted in her mother's death. Personacare moved to stay proceedings pending arbitration of Manley's claims.
The Court upheld the arbitration agreement over Manley's claim that it was unconscionable. While recognizing that admission to a nursing home is an "extremely stressful time for elderly persons of diminished health," the Court could not identify a sufficient degree of substantive unconscionability to invalidate the contract.
Weighing in favor of arbitration was the presence of a separate, stand-alone agreement to arbitrate. This fact suggested that arbitration was not a prerequisite for being admitted to the nursing home. The agreement also provided residents with a 30-day window to reject arbitration. Combined with a reasonable cost-sharing provision, these facts persuaded the Court to reject Manley's unconscionability argument and enforce the arbitration agreement.
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