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A federal court in Texas ordered arbitration of a consumer health care liability claim pursuant to a pre-dispute arbitration agreement even though the rules of the named arbitration administrator provided that it would only administer such claims when the arbitration agreement was signed post-injury.
In Owens v. Nexion Health at Gilmer, Inc., No. 2:06 CV 519 DF, 2007 WL 841114 (E.D. Tex. Mar. 19, 2006), the Owens family sued Nexion for alleged negligence after Edgar Owens died during his residency in a Nexion nursing home.
Nexion filed a motion to compel arbitration pursuant to an arbitration agreement signed by the parties during Edgar's admission to the nursing home. The agreement stated that the arbitration would be conducted by and in accordance with the rules of the American Health Lawyers Association Alternative Dispute Resolution Services (AHLA).
The Owens family argued that arbitration was inappropriate because AHLA rules provide that it "will only administer consumer health care liability claims if an agreement to arbitrate was entered into by the parties in writing after the alleged injury occurred."
Despite this provision of the AHLA rules, the Court granted Nexion's motion to compel arbitration, noting that the AHLA rules also stated that the provisions relating to consumer liability claims were not intended to affect the enforceability of any such agreement. Additionally, the AHLA rules provided that it would administer the arbitration of such a claim if a judge ordered the claim to arbitration.
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