Member Article

In an opinion that will certainly cause Texas hospitals, physicians, nursing home operators and other healthcare providers to consider whether they should insert standard arbitration clauses into their pre-treatment agreements, the Texas Supreme Court held last week that the Federal Arbitration Act (“FAA”) preempts the more stringent arbitration requirements set forth in the Texas Medical Liability Act (“TMLA”).The Fredericksburg Care Co., L.P. v. Juanita Perez et al, No. 13-0573, 2015 Tex.LEXIS 221, __ S.W.3d __ (Tex. March 6, 2015). Texas providers have hesitated in the past to include the TMLA arbitration clauses in their pre-treatment agreements. They feared that the TMLA’s stringent arbitration requirements would scare off patients. They also feared exposure to liability if they bungled any of its many requirements. The Texas Supreme Court now makes clear that in cases where the FAA preempts the TMLA’s arbitration requirements, courts will enforce standard arbitration clauses in their pre-treatment agreements.

To read the full alert, click on the PDF linked below.

Texas-Supreme-Court-Federal-Arbitration-Act-Preempts-Arbitration-Requirements.pdf