Addison v. Lochearn Nursing Home, LLC

983 A.2d 138, 411 Md. 251, 2009 Md. LEXIS 836
CourtCourt of Appeals of Maryland
DecidedNovember 10, 2009
Docket134, September Term, 2008
StatusPublished
Cited by49 cases

This text of 983 A.2d 138 (Addison v. Lochearn Nursing Home, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Addison v. Lochearn Nursing Home, LLC, 983 A.2d 138, 411 Md. 251, 2009 Md. LEXIS 836 (Md. 2009).

Opinion

*256 BATTAGLIA, J.

In this case, we must address whether Section 12-303(3)(ix) of the Courts and Judicial Proceedings Article, Maryland Code (1974, 2006 RepLVol.), 1 permits an appeal of an order denying a motion to compel arbitration, in a case in which the circuit court judge also expressly denied a motion to certify the denial as a final judgment. We will answer that question in the negative, shall vacate the judgment of the Court of Special Appeals, and direct that the appeal be dismissed.

I. Background

Lochearn Nursing Home, LLC, d/b/a FutureCare-Lochearn, Inc. (hereinafter “FutureCare”), Respondent, sued Beulah Addison, Petitioner, a resident of the nursing home, for $71,928.90 2 in delinquent “nursing home care and service” payments, in a breach of contract action brought in the Circuit Court for Baltimore City. Ms. Addison defended against the breach of contract claim by filing an Answer, asserting both negative and affirmative defenses, as well as a seven-count *257 counterclaim, 3 alleging that she was unable to pay because one of FutureCare’s employees, a social worker, embroiled her in a real estate “foreclosure rescue scam” that deprived her of the equity in her former home, which not only prevented her from paying the bill, but also from successfully applying for medical assistance, and that FutureCare mismanaged the filing of her Medicaid application. 4 FutureCare responded to Ms. Addi *258 son’s Counterclaim by filing an Answer generally denying liability. FutureCare also filed a “Motion to Compel Arbitration of Counterclaims, Motion to Stay, and Request for Attorney’s Fees,” asserting that the Resident and Facility Arbitration Agreement, signed by Ms. Addison upon her entry to the nursing home, required her to submit her counterclaims to arbitration. After a hearing, the judge denied FutureCare’s arbitration motion, after which FutureCare requested that the order denying the motions be certified as a final judgment *259 under Rule 2-602(b). The judge denied the motion to certify the order as final.

FutureCare, nevertheless, appealed immediately to the Court of Special Appeals, challenging the denial of its motion to compel arbitration and for a stay. Ms. Addison responded by filing a “Motion to Dismiss the Interlocutory Appeal” in that court, arguing that there was no final judgment on all claims within the meaning of Rule 2-602 and that, therefore, the appeal was premature. The Chief Judge of the Court of Special Appeals denied the motion, stating that Section 12-303(3)(ix) 5 permits an interlocutory appeal of an order “granting a petition to stay arbitration pursuant to § 3-208[ 6 ] of this article,” and that, “[tjhere is little difference between the denial of a motion to arbitrate and a CJ § 12 — 303(3)(ix) order staying arbitration: both stop arbitration. See Essex Corp. v. Susan Katharine Tate Burrowbridge, LLC, et. al, [178 Md. *260 App. 17, 940 A.2d 199 (2008) ].” In the order, the Chief Judge also left open the opportunity for FutureCare, “to request in its brief that a Panel of [the intermediate appellate court] enter a final judgment pursuant to Maryland Rule 8-602(e)(1) on the circuit court’s arbitration ruling, as happened in Essex Corp., supra.” After oral argument, 7 a panel of the Court of Special Appeals, in an unpublished opinion, acceded to Future-Care’s request as to the circuit court order denying Future-Care’s motion to compel arbitration and certified it as final.

The Court of Special Appeals reversed the circuit court judge’s denial of FutureCare’s Motion to Compel Arbitration, holding that ambiguity existed regarding whether the counterclaim fell within the arbitration clause and remanded the case with instructions for the circuit court to enter an order compelling arbitration and staying litigation. In so ordering, the intermediate appellate court, nevertheless, remained cognizant of the public policy dimension of an arbitration agreement involving a nursing home patient:

In concluding that the ambiguity of key terms of the agreement require us to defer their interpretation to an arbitrator, we are not unmindful of the fact that the use of arbitration provisions in nursing home contracts is a matter of public concern. In addition, two bills are moving through Congress to make unenforceable all pre-dispute, mandatory binding arbitration clauses in contracts between long-term care facilities and their residents. Nevertheless, the present state of Maryland law on arbitration leaves us no other course.

(Internal citations omitted). Ms. Addison thereafter petitioned this Court for a writ of certiorari, which we granted, 406 Md. 743, 962 A.2d 370 (2008), to address the following question:

*261 Did the Court of Special Appeals err in compelling arbitration of claims arising from a predatory real estate scam and sabotaged Medicaid application?

After argument before us, we requested the parties to submit supplemental briefs and to argue an additional issue:

Assuming that the denial of the motion to compel arbitration and to stay the judicial proceedings in the present case is not appealable as a final judgment, does Section 12-303(3)(ix) of the Courts and Judicial Proceedings Article permit an appeal as an appealable interlocutory order?

We shall not address the merits of this controversy as raised by the original certiorari question, but will vacate the judgment of the Court of Special Appeals and direct that Future-Care’s appeal be dismissed, because the Court of Special Appeals could not certify the circuit court order as final, after the circuit court judge had refused to do so, and the denial of the motion to compel arbitration does not constitute an appeal-able interlocutory order or collateral order from which FutureCare could appeal.

II. Discussion

A. Final Judgment

Generally, under Section 12-301, 8 a party may appeal only from a final judgment entered in a civil or criminal case by a circuit court. A “final judgment” is “a judgment, decree, sentence, order, determination, decision, or other action by a court ... from which an appeal ... may be taken.” Section 12-101(f). We have often stated that our jurisdiction is defined by statute, and that appeals must be taken from final judgments, except under certain limited exceptions, as Judge Irma S. Raker, writing for this Court in Gruber v. *262 Gruber, 369 Md.

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Bluebook (online)
983 A.2d 138, 411 Md. 251, 2009 Md. LEXIS 836, Counsel Stack Legal Research, https://law.counselstack.com/opinion/addison-v-lochearn-nursing-home-llc-md-2009.