A. MUTUAL ASSENT
Mutual assent is the cornerstone of any valid
contract. Mutual assent is a "meeting of the minds." The
parties must enter into the same bargain at the same time. See,
e.g., Goeckel v. Stokely, 236 N.C. 604, 607, 73 S.E.2d
618, 620 (1952) ("[T]o constitute a valid contract the parties
must assent to the same thing in the same sense, and their minds
must meet as to all terms"); Horton v. Humble Oil &
Refining Co., 255 N.C. 675, 678, 122 S.E.2d 716, 719 (1961)
(leasing contract invalid because parties did not achieve a meeting
of the minds). The very basis of the alleged bargain in mandatory
arbitration clauses is the relinquishment of the right to trial by
jury. However, in order to bargain away such a fundamental
constitutional right, there must be a knowing, voluntary and
intelligent waiver. Johnson v. Zerbst, 304 U.S. 458, 464, 58
S.Ct. 1019, 1023, 82 L.Ed. 1461 (1938) ("A waiver is ordinarily
an intentional relinquishment or abandonment of a known right or
privilege"). See also, Ohio Bell Telephone Co. v.
Public Utilities Comm. of Ohio, 301 U.S. 292, 307, 57 S.Ct. 724,
731, 81 L.Ed. 1093 (1937) ("We do not presume acquiescence in
the loss of fundamental rights").
Several jurisdictions have also held alleged
arbitration agreements invalid and unenforceable in medical
malpractice cases due to lack of mutual consent. In Sanchez v.
Simons, for example, the arbitration provision at issue stated:
9. I agree that any dispute or claim which I may
have relating to the abortion or any related medical procedure or
any consequences thereof shall be determined solely by arbitration
under the auspices and pursuant to the rules and regulations of
the American Arbitration Association.
Sanchez v. Simons, 121
Misc.2d 249, 251, 467 N.Y.S.2d 757, 759 (1983) (arbitration
provision contained within consent to abortion invalid and
unenforceable). Although the contract was specifically held not to
be a contract of adhesion ("the petitioner, not confronted with
a medical emergency, could have obtained an elective abortion
elsewhere at countless other health facilities in the metropolitan
area"), the above agreement lacked mutual consent "because
it had not been demonstrated that the petitioner made an informed
and knowledgeable waiver of her constitutional right to trial by
jury." Sanchez, 121 Misc.2d at 252, 467 N.Y.S.2d at
759-760. The Sanchez Court took notice of legislation in
other states requiring a conspicuous statement in the arbitration
agreement in medical malpractice cases that the right to trial by
jury is being relinquished. See, e.g. Cal. Code of
Civ. Pro., § 1295(b) (1976) ("NOTICE: BY SIGNING THIS CONTRACT
YOU ARE AGREEING TO HAVE ANY ISSUE OF MEDICAL MALPRACTICE DECIDED BY
NEUTRAL ARBITRATION AND YOU ARE GIVING UP YOUR RIGHT TO A JURY OR
COURT TRIAL."). The Sanchez Court also took into account
the circumstances under which the purported agreement was signed,
recognizing that patients' physical or mental distress when such
agreements are signed may impede rational decision making:
It is only the unusual patient who faces surgery
without fear and trepidation. The anxiety produced by thoughts of
soon entering the operating room, an unfamiliar setting, and the
ever present possibility of an untoward result, create an
inappropriate atmosphere in which to thrust upon a patient for the
first time the burden of analyzing documents containing an
arbitration provision inconspicuously embodied therein.
Sanchez, 121 Misc.2d at
255, 467 N.Y.S.2d at 761.
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