Adler v. Fred Lind Manor Corp., et al.

Case Updates

The Washington Supreme Court agreed with NCLC that the Federal Arbitration Act requires the enforcement of arbitration agreements using the same legal standards as those governing all other contract terms, but held that two parts of the arbitration agreement were unconscionable. The court remanded the case for the trial court to determine whether the agreement as a whole was procedurally unconscionable.

NCLC argued that a standard arbitration agreement in an employment contract is valid and enforceable, as the trial court had ruled in this case involving an employee of a Washington state nursing home. On discretionary appeal to the Washington Supreme Court, the employee contended that the state constitution’s standard for a valid waiver of the right to a jury trial, as well as the state law of unconscionability, rendered the employee’s signed agreement to arbitrate null and void. NCLC argued in its brief to the Washington Supreme Court that the Federal Arbitration Act requires the enforcement of arbitration agreements using the same legal standards as those governing all other contract terms, and that application of other state law standards is therefore preempted.