Failure to Specify Mutually Convenient Venue in Arbitration Agreements
Penalty
Summary
The facility failed to ensure its binding arbitration agreement provided for the selection of a mutually convenient venue for arbitration proceedings, as required by its own policy, for three residents reviewed for arbitration (R246, R140, and R251). The facility’s written policy on Binding Arbitration Agreements stated that the agreement must provide for selection of a venue that is convenient for both parties. However, review of the actual arbitration agreement form showed there was no mention of a venue and no provision that the venue should be agreed upon and suitable to both parties. In interviews, the Concierge II, who was responsible for informing residents and families about arbitration, confirmed that the agreement did not document a venue, that she did not inform residents or families of any venue, and that she did not know where arbitration would occur. The Administrator and Assistant Administrator each confirmed that the arbitration agreement did not specify a venue or mention a mutual venue, and the Administrator stated he could not say for sure that the agreement was required to state the venue.
