1. Agreement to Arbitrate. Any dispute, claim, or controversy arising out of or relating to an actual or suspected breach of PHI collected, stored, or transmitted through this App including, but not limited to, claims for damages, injunctive relief, or regulatory penalties shall be resolved exclusively through final and binding arbitration, except as otherwise required by applicable law. This agreement to arbitrate applies to all claims by or against the Laboratory, its employees (including phlebotomists and supervisors), patients, and any other affected parties, to the fullest extent permitted by law. Notwithstanding the foregoing, this arbitration provision shall not: (a) prevent any party from seeking temporary or preliminary injunctive relief in a court of competent jurisdiction to prevent irreparable harm pending arbitration; (b) limit the Laboratory’s obligation to comply with HIPAA breach notification requirements or to cooperate with regulatory investigations by HHS/OCR, state attorneys general, or other governmental authorities; or (c) preclude any individual from filing a complaint with HHS/OCR or any other regulatory agency as permitted by law. The filing of a regulatory complaint shall not waive the right to arbitrate any private claims for damages.
2. Arbitration Administrator and Rules. Arbitration shall be administered by the American Arbitration Association (“AAA”) in accordance with its Healthcare Arbitration Rules then in effect as selected by the Laboratory. If the designated administrator is unable or unwilling to administer the arbitration, the parties shall agree upon an alternative administrator or petition a court of competent jurisdiction to appoint one. The arbitration shall be conducted by a single neutral arbitrator who shall have experience in healthcare privacy law and HIPAA compliance matters. The arbitrator shall be selected in accordance with the rules of the administering organization. All arbitration proceedings, including filings, evidence, testimony, and the arbitrator’s award, shall be treated as strictly confidential and shall not be disclosed to any third party except as necessary to enforce the award, as required by law, or as required for regulatory reporting purposes (including reports to HHS/OCR or state regulators). This confidentiality obligation survives the conclusion of the arbitration
3. Location and Procedure. The arbitration shall take place in New York City, New York unless the parties mutually agree to a different location or to virtual proceedings. The arbitrator shall apply New York substantive law and federal law (including HIPAA and the HITECH Act) as applicable. Discovery shall be limited to matters directly relevant to the dispute and shall be conducted in a manner consistent with protecting the confidentiality of PHI. The arbitrator may issue protective orders to safeguard PHI disclosed during the arbitration proceedings.
4. Arbitrator’s Authority and Award. The arbitrator shall have the authority to award any remedy that would be available in a court of competent jurisdiction, including compensatory damages, injunctive relief, and equitable relief. The arbitrator shall not have the authority to award punitive damages except to the extent expressly authorized by applicable statute. The arbitrator’s award shall be in writing, shall state the reasons for the decision, and shall be final and binding on all parties. Judgment on the award may be entered in any court of competent jurisdiction.
5. Costs and Fees. Each party shall bear its own attorneys’ fees and costs, unless the arbitrator determines that a party’s claim or defense was frivolous or brought in bad faith, in which case the arbitrator may award reasonable attorneys’ fees and costs to the prevailing party. Administrative fees and arbitrator compensation shall be allocated in accordance with the rules of the administering organization, provided that the Laboratory shall bear all arbitration filing fees and administrative costs for any claim brought by a patient.
6. Class Action and Collective Action Waiver. All claims shall be brought in the parties’ individual capacities and not as a plaintiff or class member in any purported class, collective, or representative proceeding. The arbitrator shall have no authority to consolidate claims of multiple parties or to conduct any form of class or collective arbitration, unless all parties expressly agree in writing.