Lakeland Anesthesia, Inc. v. Cigna Healthcare of Louisiana, Inc.

812 So. 2d 695, 2001 La.App. 4 Cir. 1059, 2002 La. App. LEXIS 245, 2002 WL 264607
CourtLouisiana Court of Appeal
DecidedFebruary 6, 2002
Docket2001-CA-1059
StatusPublished
Cited by22 cases

This text of 812 So. 2d 695 (Lakeland Anesthesia, Inc. v. Cigna Healthcare of Louisiana, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lakeland Anesthesia, Inc. v. Cigna Healthcare of Louisiana, Inc., 812 So. 2d 695, 2001 La.App. 4 Cir. 1059, 2002 La. App. LEXIS 245, 2002 WL 264607 (La. Ct. App. 2002).

Opinion

812 So.2d 695 (2002)

LAKELAND ANESTHESIA, INC. Individually, and on Behalf of Others Similarly Situated
v.
CIGNA HEALTHCARE OF LOUISIANA, INC.

No. 2001-CA-1059.

Court of Appeal of Louisiana, Fourth Circuit.

February 6, 2002.

*696 Andrew A. Lemmon, Donna M. Bossier, Lemmon Law Firm, New Orleans, LA, and Paul A. Lea, Jr., Covington, LA, and Joe R. Whatley, Jr., Whatley Drake, L.L.C., Birmingham, AL, Counsel for Plaintiff/Appellee.

Brian D. Boyle, O'Melveny & Myers, L.L.P., Washington, DC, and Charles R. Penot, Jr., B. Franklin Martin, III, McGlinchey Stafford and Normand F. Pizza, Milling Benson & Woodward, L.L.P., New Orleans, LA, Counsel For Defendant/Appellant, CIGNA HealthCare of Louisiana, Inc.

Court composed of Judge JOAN BERNARD ARMSTRONG, Judge STEVEN R. PLOTKIN, Judge TERRI F. LOVE.

PLOTKIN, Judge.

Defendant, CIGNA HealthCare of Louisiana, Inc., appeals a trial court judgment partially denying its exception of prematurity and alternative motion for a stay pending arbitration based on its contention that all claims asserted by plaintiffs, Anesthesia East, Inc. and Lakeland Anesthesia, Inc., are subject to a contractual mandatory arbitration provision. CIGNA claims that the trial court improperly failed to dismiss all of the claims asserted by Anesthesia East and Lakeland Anesthesia. We affirm.

*697 Facts

Plaintiffs, Lakeland Anesthesia and Anesthesia East, two groups of independent anesthesiologists, filed suit against defendant, CIGNA HealthCare, alleging that CIGNA HealthCare failed to make timely payments for healthcare services they rendered to CIGNA HealthCare insureds. According to the "Group Practice Managed Care Agreement" between CIGNA HealthCare and Anesthesia East, CIGNA HealthCare "contracts directly or indirectly with Payors, employers, individuals, insurers, sponsors and others, to provide, insure, arrange for and administer the provision of health care services." CIGNA HealthCare also "contracts with physicians, hospitals and other health care practitioners and entities, to provide, arrange for or administer, at predetermined rates, the delivery of such health care services."

Anesthesia East seeks payment of claims under the provisions of its aforementioned "Group Practice Managed Care Agreement" with CIGNA HealthCare. However, Lakeland Anesthesia is not a signatory to any agreement with CIGNA HealthCare. Thus, Lakeland Anesthesia seeks payment for services under the provisions of an agreement between CIGNA HealthCare and Columbia/HCA. Lakeland Anesthesia claims that it provided health care services to CIGNA HealthCare insureds at Columbia/HCA.

CIGNA HealthCare filed an exception of prematurity and motion for stay pending arbitration. The trial court granted the exception "with respect to claims arising under that certain contract between Anesthesia East, Inc. and CIGNA HealthCare of Louisiana, Inc. entitled `Group Practice Managed Care Agreement' that has an effective date of September 1, 1999," based on an arbitration provision found in that agreement. Those claims were dismissed by the trial court without prejudice. However, the trial court denied the exception and the motion to stay regarding all claims asserted by Anesthesia East other than those arising under the agreement executed on September 1, 1999. The trial court also denied the exception and motion to stay regarding all claims asserted by Lakeland Anesthesia, apparently because Lakeland Anesthesia was not a signatory to any agreement containing an arbitration clause. CIGNA HealthCare appeals.[1]

Standard of review

This court most recently described the proper standard of review for a trial court decision based on interpretation of a contract in Bartlett Construction Co., Inc. v. St. Bernard Parish Council, 99-1186 (La.App. 4 Cir. 5/31/00), 763 So.2d 94, writ denied, 2000-2322 (La.11/03/00), 773 So.2d 142, as follows:

The issue of whether or not the language of a contract is ambiguous is an issue of law subject to de novo review on appeal. Orleans Parish School Board v. City of New Orleans, 96-2664 (La.App. 4 Cir. 9/3/97), 700 So.2d 870. "In the interpretation of contracts, the trial court's interpretation of the contract is a finding of fact subject to the manifest error rule." Grabert v. Greco, 95-1781, (La.App. 4 Cir. 2/29/96), 670 So.2d 571, 573. In applying the manifest error rule to the trial court's interpretation, the Court of Appeal may not simply substitute its own view of the evidence for the trial court's view, nor may it disturb the trial court's finding of fact so long as it is reasonable. Syrie v. Schilhab, 96-1027, *698 (La.5/20/97), 693 So.2d 1173. In such cases, appellate review of questions of law is simply to determine whether the trial court was legally correct.

Id. at 4-5, 763 So.2d at 97-98. Because we find no ambiguity in the arbitration clause at issue in the instant case, we will simply determine whether the trial court was legally correct in partially denying CIGNA HealthCare's exception and alternative motion to stay.

Arbitration principles

The Louisiana Arbitration Law ("LAL") is virtually identical to the United States Arbitration Act, 9 U.S.C. §§ 1. 14; thus, Louisiana courts look to federal law in interpreting the LAL. Blount v. Smith Barney Shearson, Inc., 96-0207, p. 5 (La. App. 4 Cir. 2/12/97), 695 So.2d 1001, 1003. Citing the Steelworkers' Trilogy,[2] the United States Supreme Court in AT & T Technologies, Inc. v. Communications Workers of America, 475 U.S. 643, 106 S.Ct. 1415, 89 L.Ed.2d 648 (1986) established four "precepts" for determining whether a given dispute must be submitted to arbitration. Only the first and fourth of those precepts are pertinent to this case. The first precept is that "`arbitration is a matter of contract and a party cannot be required to submit to arbitration any dispute which he has not agreed so to submit.'" 475 So.2d at 648, quoting Schneider Moving & Storage Co. v. Robbins, 466 U.S. 364, 371-372, 104 S.Ct. 1844, 80 L.Ed.2d 366 (1984). The fourth precept is that "where the contract contains an arbitration clause, there is a presumption of arbitrability in the sense that `[a]n order to arbitrate the particular grievance should not be denied unless it may be said with positive assurance that the arbitration clause is not susceptible of an interpretation that covers the asserted dispute.'" Id. at 650.

Claims asserted by Anesthesia East

The contractual relationship between CIGNA HealthCare and Anesthesia East goes back to 1991. Prior to September 1, 1999, all of the contracts between Anesthesia East and CIGNA HealthCare contained the following "Dispute Resolution" provision:

The parties shall resolve complaints or grievances arising between the parties or the parties and Payor or the parties and Participants in accordance with the dispute resolution procedures described in the applicable Program Requirements.

However, the renewal contract between the CIGNA HealthCare and Anesthesia East, signed on September 1, 1999 and valid when the instant suit was filed, contains the following "Dispute Resolution" provision:

1.

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Bluebook (online)
812 So. 2d 695, 2001 La.App. 4 Cir. 1059, 2002 La. App. LEXIS 245, 2002 WL 264607, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lakeland-anesthesia-inc-v-cigna-healthcare-of-louisiana-inc-lactapp-2002.