Blitz v. Beth Isaac Adas Israel Congregation

694 A.2d 107, 115 Md. App. 460, 1997 Md. App. LEXIS 83
CourtCourt of Special Appeals of Maryland
DecidedMay 6, 1997
Docket1361, Sept. Term, 1996
StatusPublished
Cited by24 cases

This text of 694 A.2d 107 (Blitz v. Beth Isaac Adas Israel Congregation) is published on Counsel Stack Legal Research, covering Court of Special Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blitz v. Beth Isaac Adas Israel Congregation, 694 A.2d 107, 115 Md. App. 460, 1997 Md. App. LEXIS 83 (Md. Ct. App. 1997).

Opinion

HOLLANDER, Judge.

We must decide whether the Maryland Uniform Arbitration Act permits recovery of attorney’s fees incurred in connection with a suit instituted to confirm and enforce an arbitration award, necessitated by a refusal to comply with binding arbitration. We must also determine whether the circuit court abused its discretion in declining to impose sanctions, pursuant to Maryland Rule 1-341.

Rabbi Marcel Blitz, appellant, and the Beth Isaac Adas Israel Congregation (“Beth Isaac” or “the Synagogue”), appel-lee, negotiated a binding arbitration agreement to resolve a dispute based on appellant’s service as the Synagogue’s rabbi. At the conclusion of the arbitration proceeding, the panel awarded Rabbi Blitz the sum of $5,000. When the Synagogue failed to pay, Rabbi Blitz resorted to litigation in the Circuit Court for Baltimore County to confirm and enforce the arbitration award. Although the court confirmed the award, it denied Rabbi Blitz’s requests for attorney’s fees and sanctions. He now presents the following questions for our review:

I. Did the Circuit Court err when it denied Blitz’s request under Section 3-228 of the Courts and Judicial Proceedings *467 Code that he be awarded the attorney’s fees he incurred in connection with confirming and enforcing the arbitration award against [Beth Isaac], in light of the clear, unambiguous and broad language in Section 3-228 which authorizes the Circuit Court to award the “costs of the petition, the subsequent proceedings, and disbursements” when the Circuit Court confirms an arbitration award?
II. Did the Circuit Court err when it denied Blitz’s Motion for Sanctions under Maryland Rule 1-341 because of the Court’s personal distaste for Court intervention in a dispute between a Rabbi and a Congregation, in light of the fact that the undisputed evidence before the Court demonstrated that the conduct of [Beth Isaac] and its attorney was without substantial justification and/or in bad faith and that conduct merited the imposition of sanctions?
III. Did the Circuit Court err when it denied Blitz’s Motion to Alter or Amend Judgment, which requested, among other things, that the Court review certain documents, in camera, which would have proven that the conduct of [Beth Isaac] and its attorney was without substantial justification and/or in bad faith and that conduct merited the imposition of sanctions?

We conclude that the Maryland Uniform Arbitration Act (“the Maryland Act”), Maryland Code (1957, 1995 ReplVol.), § 3-228(b) of the Courts and Judicial Proceedings Article (“C.J.”), does not authorize the award of attorney’s fees. We are, however, of the view that the circuit court abused its discretion when it summarily denied appellant’s alternative motion for sanctions. As we shall affirm in part and reverse in part, and remand the case for further proceedings, we need not address appellant’s remaining question.

Factual Background 1

A unanimous arbitration decision issued by a Beth *468 Din, 2 a religious tribunal that arbitrated the parties’ underlying dispute, is the central event underpinning the present controversy. The Beth Din, convened pursuant to an agreement between the parties dated February 27, 1994, was composed of a panel of three rabbis; each party selected one rabbi and the two rabbis then chose the third rabbi. In accordance with the terms of the contract, the decision of the Beth Din was to be “binding on both parties,” as well as “final and with no appeal.” On June 14, 1994, the Beth Din awarded Rabbi Blitz $5,000 in damages, payable in two installments; a $3,000 payment was due before July 9, 1994, and a $2,000 payment was due before July 28, 1995. Although the Synagogue did not contest the validity of the judgment in the period immediately subsequent to the Beth Din’s decision, it failed to make either payment.

In January 1995, Rabbi Blitz filed suit in the District Court for Baltimore County, seeking to recover the money owed by the Synagogue. 3 After the Synagogue filed a Notice of Intention to Defend, Rabbi Blitz appeared for trial with two of the three rabbis who presided at the Beth Din. The Synagogue moved to dismiss for lack of subject matter jurisdiction, claiming the District Court lacked jurisdiction to confirm and enforce an arbitration award. That motion was granted, without prejudice.

Thereafter, in mid March, Rabbi Blitz’s attorney notified the Synagogue that he would seek to enforce the arbitrators’ award in court if the money was not paid. On March 28,1996, Rabbi Blitz filed in the circuit court a Petition to Confirm and *469 Enforce Arbitration Award and Complaint for Damages, as well as a motion for summary judgment, supported by the arbitration agreement, an affidavit from the rabbis who served on the Beth Din, and Rabbi Blitz’s affidavit. He asked, inter alia, for costs and attorneys’ fees, premised on C.J. § 3-228. The Synagogue was served on April 8, 1996, but it did not timely file its answer to the Petition. As a result, on May 14, 1996, the court signed an Order entering judgment in favor of Rabbi Blitz in the amount of $5,000, which was docketed on May 16, 1996. In the Order, the court said that Rabbi Blitz’s attorney’s fees would “be determined by the court upon submission of sufficient evidence in support thereof.” As directed by the court, appellant promptly submitted an affidavit seeking attorney’s fees and costs in the amount of $1,615.

By order dated May 22, 1996, docketed May 28, 1996, the circuit court entered judgment in favor of appellant in the amount of $415 for costs, but denied appellant’s request for attorney’s fees under C.J. § 3-228. Appellant then filed a “Motion for Reconsideration” on June 25, 1996, seeking to invoke the court’s revisory power under Rule 2-535. After the court denied the motion on July 10, 1996, appellant noted his appeal on July 12, 1996. 4

In the interim, on May 15, 1996, the Synagogue filed its answer, along with a Petition to Modify or Vacate the arbitra *470 tion award and a Response to Motion for Summary Judgment. It contended that “the arbitrators exceeded their authority;” it claimed that the parties had limited the arbitrators to a maximum award of $3,000. Because the order had already been signed when these papers were filed, it is unclear whether the judge revisited the order of May 14 before it was docketed on May 16.

Counsel for Rabbi Blitz contacted appellee’s counsel to advise him that the Synagogue’s challenges were untimely, based on C.J. § 3-223 (requiring filing of a petition to modify within 90 days after receipt of the arbitration decision) and C.J. § 3-224 (requiring filing of a petition to vacate within 30 days from receipt of the award). Although appellee’s counsel was aware of the time limitations, he felt that the case of C.W. Jackson & Assocs., Inc. v. Brooks, 289 Md.

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Bluebook (online)
694 A.2d 107, 115 Md. App. 460, 1997 Md. App. LEXIS 83, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blitz-v-beth-isaac-adas-israel-congregation-mdctspecapp-1997.