Belnap v. Iasis Healthcare

844 F.3d 1272, 2017 WL 56277, 2017 U.S. App. LEXIS 180
CourtCourt of Appeals for the Tenth Circuit
DecidedJanuary 5, 2017
Docket15-4010
StatusPublished
Cited by157 cases

This text of 844 F.3d 1272 (Belnap v. Iasis Healthcare) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Belnap v. Iasis Healthcare, 844 F.3d 1272, 2017 WL 56277, 2017 U.S. App. LEXIS 180 (10th Cir. 2017).

Opinion

HOLMES, Circuit Judge.

LeGrand P. Belnap, M.D., is a surgeon at the Salt' Lake Regional Medical Center (“SLRMC”). Dr. Belnap arid SLRMC entered into a Management Services Agreement (“Agreement”) under which he would provide consulting services to help SLRMC develop a new surgical center. The Agreement contained an arbitration provision, including an agreement to arbitrate questions of arbitrability. SLRMC subsequently disciplined Dr. Belnap for alleged misconduct and then reversed course and vacated the discipline. As a result, Dr. Belnap brought various claims against SLRMC, its alleged parent company, and several of its individual employees. These Defendants moved to compel arbitration on the basis of the arbitration provision in the Agreement. The district court determined that most of the claims fell outside the scope of the Agreement, and granted in part and denied in part the motion. Exercising jurisdiction under the Federal Arbitration Act (“FAA”), 9 U.S.C. § 16(a)(1)(A) arid (C), we AFFIRM IN PART, REVERSE IN PART, and REMAND for further proceedings.

I

A

Dr. Belnap is a general surgeon. In 2009, he joined the staff of the Salt Lake City hospital, SLRMC. Dr. Belnap was appointed Surgical Director of SLRMC’s intensive-care unit.

As an SLRMC staff, member, Dr. Bel-nap’s relationship with the hospital is governed by the SLRMC Bylaws of the Medical and Dental Staff (“Bylaws”). In addition to governing the treatment and care of patients, the Bylaws provide rules for investigating a physician, implementing a suspension, and guaranteeing due process through fair hearing procedures. The Bylaws do not contain an arbitration provision. ' ■ ''

On February 1, 2012, Dr. Belnap entered into The Agreement with SLRMC. It related to- the development of a “Hepatic Surgical department devoted to a[n] Abdominal Treatment Program,” called the “Center.” Aplts.’ App. at 54. Specifically, the Agreement engaged Dr. Belnap’s “management and consulting services” to develop and operate the Center. Id. at 55. 1 *1275 With respect to those services, the Agreement created an “independent contractor” relationship between Dr. Belnap and SLRMC. Id. at 65 (§ 5.1). provided that SLRMC could “terminate th[e] Agreement effective immediately.” Id. at 66-67 (§ 8.3).

In the Agreement, Dr. Belnap represented that he:

(i) holds a license to practice medicine in the State of Utah, and neither that license nor any license to practice- medicine in any other jurisdiction has ever been denied, suspended, revoked, terminated, voluntarily relinquished under threat of disciplinary action, or restricted in any way; (ii) maintains an active surgery practice; (iii) holds medical staff privileges at [SLRMC]; [and] (iv) has not had medical staff privileges denied, suspended, revoked, terminated, voluntarily relinquished under threat of disciplinary action, or made subject to terms of probation or any other restriction' at any health care facility[.]

Id. at 63 (§ 4.2). If any of these representations ceased to be true, the Agreement

The Agreement contained the following dispute-resolution provision:

24. Dispute Resolution. The Parties shall initially attempt to settle any dispute between them (as well as with all or any of the Service Providers; each Party and any such Service Provider being referred to individually in this Section 24 as a “Disputant”) arising under or related to this Agreement informally. If the Disputants are unable to resolve the dispute informally, the Disputants shall seek to resolve the dispute through mediation and if mediation fails, shall have the dispute resolved by arbitration. No Disputant may prosecute any suit until and unless the Disputants have submitted the issues to mediation and, if necessary, to arbitration in Salt Lake County,- Utah, in accordance with the rules of JAMS and applying' laws of the United States and State of Utah, or another suitable dispute resolution service agreeable to their respective attorneys. [Dr. Belnap] will secure the agreement of each Service Provider to be bound by the provisions of this Section 24. Notwithstanding the foregoing, [SLRMC] may at any point bring action in a court of competent jurisdiction to enforce the provisions of Section 10 [regarding confidentiality-. of health information], 14 [regarding the noncompetition agreement] and 15 [regarding SLRMC’s confidential information] of this Agreement.
24.1 Mediation. Mediation shall be initiated by a Disputant, and the mediation shall be conducted, in accordance with the JAMS mediation guidelines, except as herein provided otherwise. The mediator shall be chosen by the Disputants, or if they are unable - to agree within fourteen (14) days, by the applicable representative of JAMS. If the mediator chosen has not succeeded in achieving a mediated settlement after ninety (90) days, any Disputant may initiate *1276 resolution of the dispute through arbitration.
24.2 Arbitration. If the Disputants are unable to resolve the dispute informally or through mediation, any Disputant may within thirty (30) days of completion of the failed mediation submit the matter to final, binding arbitration, provided that the issue is arbitrable under Utah law. The arbitration shall be administered by JAMS and conducted in accordance unth its Streamlined Arbitration Rules and Procedures (the “Rules”), except as provided otherwise herein. Selection of an arbitrator shall be made on or before fourteen (14) days after the receipt of the demand for arbitration. In the event the Disputants cannot agree on the selection of an arbitrator within this time,' the arbitrator shall be selected pursuant to the Rules. A preliminary conference -shall be held as provided in the Rules. The Disputants, the JAMS Case Manager and the arbitrator shall maintain the substance of any proceedings hereunder in confidence and the Case Manager and the arbitrator, prior to any proceedings being held ' hereunder, shall sign an agreement whereby they agree' to keep the substance of any proceedings hereunder in confidence. The arbitrator may award, wholly or in such partial amount(s) as the arbitrator determines, any Disputant its costs of the arbitration proceeding (including attorneys fees) at the expense of the other Disputant(s).

Id. at 73, 75 (§ 24) (emphases added).

On March 18, 2013, SLRMC’s Medical Executive Committee (“MEC”) suspended Dr. Belnap’s medical privileges. The suspension was based on allegations that Dr. Belnap had sexually harassed an SLRMC employee, as well as “other allegations of prior incidents.” Aplts.’ App. at 17. Dr. Belnap challenged the suspension by requesting a fair hearing pursuant to the Bylaws. Id. at 18. SLRMC’s Fair Hearing Committee (“FHC”) held a hearing and determined that “the MEC’s actions on the whole were not supported by the evidence, and were arbitrary and capricious.” Id. at 19. As a result, the FHC recommended that the MEC vacate Dr. Belnap’s suspension.

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Cite This Page — Counsel Stack

Bluebook (online)
844 F.3d 1272, 2017 WL 56277, 2017 U.S. App. LEXIS 180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/belnap-v-iasis-healthcare-ca10-2017.