Arbitration Order Appeal: Futurecare v. Peeler 1
The Baltimore Medical Malpractice Lawyer Blog discusses issues in Maryland medical malpractice cases. In part 1 of this two-part Post, I delve into the intricate legal issue of the appealing of an order denying a petition to compel arbitration. The case under scrutiny is the Court of Special Appeals reported opinion in Futurecare Northpoint, LLC. v. Peeler, 229 Md. App. 108 (2016), a significant case in Maryland’s legal landscape.
In part 2, I will discuss the issue of whether the wrongful death claim had to be arbitrated.
Factual Background
The decedent became a resident of a skilled nursing facility. At admission, she signed a written agreement to resolve a broad range of potential controversies by binding arbitration under the Maryland Uniform Arbitration Act (MUAA). (Op. at 1-2). The scope of the agreement included wrongful death claims. It also stated that it bound persons who could make wrongful death claims. (Id. at 2).
The decedent received medical care in the facility and ultimately died. The decedent’s daughter brought a lawsuit for wrongful death in the Circuit Court for Baltimore County. (Id. at 3).
Later the same month, the facility filed a separate action with a petition for an order to arbitrate under CJP 3-207. The daughter opposed the petition because she had not signed an arbitration agreement. The court consolidated the cases but maintained separate files. (Id. at 4).
The trial judge issued an order denying the petition for arbitration and tried to make it so the defendant could immediately appeal. The Order stated that the cases were no longer consolidated and that the order was a final order and could be appealed pursuant to Rule 2-602(b). The facility appealed and filed a motion to stay the wrongful death case pending the appeal. The trial judge granted the motion to stay. (Id. at 5).
Court of Special Appeals on Appealing an Order for Arbitration
The Court of Special Appeals raised on its own initiative whether the facility has a right to appeal from a judgment in an independent case instead of a motion in the wrongful death case. (Id. at 1).
The CSA noted that a party can appeal only from a final judgment on the merits unless an exception exists. There are narrow exceptions under CJP 12-303, the collateral doctrine, or Rule 2-602(b). (Id. at 5).
The CSA observed that most parties do not file a separate lawsuit to compel arbitration but instead file a motion to compel arbitration in the existing action. The Court of Appeals has repeatedly held that an order denying a motion to compel arbitration in an existing case is not a final judgment and cannot be immediately appealed under any exception. (Id. at 8-11).
Here, the facility filed its petition to compel as a separate case. The trial court’s order fully adjudicated the only claim in that separate action and terminated the case. Accordingly, the CSA held that the facility had the right to appeal from the order denying arbitration as a final judgment in a separate action. (Id. at 11-12).
The CSA also stated that since there was a final judgment, the Rule 2-602 certification was not applicable. Rule 2-602 applies to cases with multiple claims or more than two parties. It applies to orders that do not dispose of an entire case. (Id. at 12).
When the trial court consolidates cases, and a judgment disposes of one case, that judgment is appealable even though there are unresolved claims in the other consolidated case. (Id. at 12).
Commentary by Baltimore Medical Malpractice Lawyer Mark Kopec an Appealing an Order for Arbitration
This case has significant practical implications. A medical malpractice defendant seeking to compel a plaintiff to arbitrate has two paths, each with consequences.
The defendant can file a motion to compel arbitration in the plaintiff’s lawsuit. If the trial court denies the motion, the defendant cannot immediately appeal the order denying arbitration. The parties will proceed to trial, and then the defendant can appeal the arbitration ruling. Suppose the appellate court decides that the matter requires arbitration. In that case, it will vacate the jury verdict and remand the matter for arbitration. In this instance, the parties will spend much time and money on a trial that ultimately becomes unnecessary.
However, in the alternative, the defendant can file a petition to compel arbitration in a separate lawsuit. If the trial court denies the petition, the parties can immediately appeal the denial of the arbitration order and seek a stay in the other case. The parties can finalize the arbitration question before expending the time and resources on a trial.
Choice
In many instances, like the one in this case, the defendant will decide which of these two options to pursue. If the plaintiff believes the arbitration argument is weak, they may not care which option the defendant chooses. However, suppose the defendant has a significant argument for arbitration. In that case, hopefully, the parties will both believe that a separate action, with its immediate appealability, would be the most efficient way for the litigation to proceed.
You can also read other Blog posts on appeal and arbitration issues.
Mark Kopec is a top-rated Baltimore medical malpractice lawyer. Contact us at 800-604-0704 to speak directly with Attorney Kopec in a free consultation. The Kopec Law Firm is in Baltimore and helps clients throughout Maryland and Washington, D.C. Thank you for reading the Baltimore Medical Malpractice Lawyer Blog.