McPherson v. Walgreens Boot Alliance

993 N.W.2d 679, 314 Neb. 875
CourtNebraska Supreme Court
DecidedAugust 11, 2023
DocketS-22-603
StatusPublished
Cited by6 cases

This text of 993 N.W.2d 679 (McPherson v. Walgreens Boot Alliance) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McPherson v. Walgreens Boot Alliance, 993 N.W.2d 679, 314 Neb. 875 (Neb. 2023).

Opinion

Nebraska Supreme Court Online Library www.nebraska.gov/apps-courts-epub/ 08/11/2023 09:11 AM CDT

- 875 - Nebraska Supreme Court Advance Sheets 314 Nebraska Reports MCPHERSON V. WALGREENS BOOT ALLIANCE Cite as 314 Neb. 875

Yvonne McPherson, appellee, v. Walgreens Boot Alliance, Inc., appellee, Ferrandino & Son, Inc., appellant, and Patera Landscaping, LLC, appellee. ___ N.W.2d ___

Filed August 11, 2023. No. S-22-603.

1. Jurisdiction: Appeal and Error. A jurisdictional question which does not involve a factual dispute is determined by an appellate court as a matter of law. 2. ____: ____. Before reaching the legal issues presented for review, it is the duty of an appellate court to determine whether it has jurisdiction over the matter before it. 3. Courts: Jurisdiction: Legislature: Appeal and Error. For an appellate court to have jurisdiction over an appeal, appellate jurisdiction must be specifically provided by the Legislature. 4. Arbitration and Award: Federal Acts: Contracts. In Nebraska, arbi- tration is governed by the Federal Arbitration Act if it arises from a contract involving interstate commerce; otherwise, it is governed by Nebraska’s Uniform Arbitration Act. In analyzing whether the Federal Arbitration Act applies, the initial question is whether the parties’ contract evidences a transaction involving commerce as defined by the Federal Arbitration Act. 5. Arbitration and Award: Federal Acts: Final Orders: Appeal and Error. Even when an arbitration provision is governed by the Federal Arbitration Act, Nebraska courts still determine finality for purposes of appeal by first applying state procedural rules. 6. Courts: Legislature: Appeal and Error. The Nebraska Legislature has authorized appeals from judgments, decrees, and final orders made by the district court.

Appeal from the District Court for Douglas County: Jeffrey J. Lux, Judge. Appeal dismissed. - 876 - Nebraska Supreme Court Advance Sheets 314 Nebraska Reports MCPHERSON V. WALGREENS BOOT ALLIANCE Cite as 314 Neb. 875

Jennifer D. Tricker and Brian Barmettler, of Baird Holm, L.L.P., for appellant. Michael T. Gibbons and Raymond E. Walden, of Woodke & Gibbons, P.C., L.L.O., for appellee Patera Landscaping, LLC. Heavican, C.J., Cassel, Stacy, Funke, Papik, and Freudenberg, JJ. Stacy, J. This is an interlocutory appeal from a district court order granting a motion to stay arbitration proceedings between codefendants in a negligence action. Because we conclude the order staying arbitration was not immediately appealable, we must dismiss this appeal for lack of jurisdiction. BACKGROUND Walgreens Boot Alliance, Inc. (Walgreens), is a national retail pharmacy chain that contracted with Ferrandino & Son, Inc. (Ferrandino), a national facility maintenance company incorporated and headquartered in New York, to provide land- scaping and maintenance services at various pharmacy loca- tions across the United States. In February 2018, Ferrandino subcontracted with Patera Landscaping, LLC (Patera), to per- form landscaping and snow and ice removal services at three pharmacy locations in Omaha, Nebraska. Patera is a limited liability company registered in Nebraska. The subcontract between Ferrandino and Patera contained a clause that required Patera to defend, indemnify, and hold harmless Ferrandino and its customers from “any and all claims reasonably related to [s]ervices you provided or failed to provide under [the subcontract].” The subcontract also con- tained the following arbitration and choice-of-law provisions: A. Arbitration. All disputes, controversies and claims of any kind arising out of or relating to this Agreement or the rights and obligations of the parties shall be settled through arbitration by the American Arbitration Association at its Philadelphia, Pennsylvania office, in - 877 - Nebraska Supreme Court Advance Sheets 314 Nebraska Reports MCPHERSON V. WALGREENS BOOT ALLIANCE Cite as 314 Neb. 875

accordance with the Federal Arbitration Act and the Commercial Arbitration Rules. . . . B. Governing Law and Jurisdiction. THE LAWS OF THE STATE OF PENNSYLVANIA SHALL GOVERN THE VALIDITY, PERFORMANCE, INTERPRETATION, AND EFFECT OF THIS AGREEMENT. . . . IF THERE IS AN APPEAL FROM OR RELATING TO AN ARBITRATION, THEN THE PARTIES AGREE TO THE JURISDICTION AND VENUE OF THE COURTS IN MONTGOMERY COUNTY, PENNSYLVANIA OR THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA IN PHILADELPHIA. In December 2018, Yvonne McPherson was injured when she slipped and fell on an icy sidewalk outside a Walgreens pharmacy in Omaha. In March 2022, McPherson filed a per- sonal injury action against Patera, Ferrandino, and Walgreens in the district court for Douglas County. McPherson’s com- plaint alleged “[t]here was no ice melt, salt, sand, or other abrasive on the sidewalk” where she fell, and she alleged her fall was proximately caused by the negligence of all three named defendants. The three defendants filed separate answers, represented by separate counsel. As relevant to the issues on appeal, Patera’s answer specifically denied that it had a duty, under the sub- contract, to provide snow and ice removal at the Walgreens pharmacy on the date of McPherson’s fall. Ferrandino’s answer included a cross-claim against Patera for indemnity and contri- bution. In answering the cross-claim, Patera denied the allega- tions regarding indemnity and contribution and alleged several affirmative defenses, including that the cross-claim failed to state a claim upon which relief could be granted. Demand for Arbitration and Motion to Stay Arbitration Shortly after the defendants filed their responsive plead- ings, Walgreens tendered defense of the negligence claims - 878 - Nebraska Supreme Court Advance Sheets 314 Nebraska Reports MCPHERSON V. WALGREENS BOOT ALLIANCE Cite as 314 Neb. 875

to Ferrandino under the terms of its contract. Ferrandino, in turn, tendered defense of the claims against Walgreens and Ferrandino to Patera under the terms of the subcon- tract. When Patera refused the tender of defense, Ferrandino filed a demand for arbitration with the American Arbitration Association seeking a determination that under the terms of the subcontract, Patera had a contractual duty to defend and indemnify both Ferrandino and Walgreens against McPherson’s claims. The arbitration demand described the nature of the dispute as a “[b]reach of contract” and asked that the arbitration be conducted in Pennsylvania using an arbi- trator who was an “[a]ttorney experienced in [Pennsylvania] law as it applies to contractual disputes involving defense/ indemnification provisions.” On July 1, 2022, Patera filed a motion in the district court case to stay the arbitration, expressly relying on Neb. Rev. Stat. § 25-2603 (Reissue 2016) of Nebraska’s Uniform Arbitration Act (UAA). 1 Section 25-2603(b) provides in part: “On appli- cation, the court may stay an arbitration proceeding com- menced or threatened on a showing that there is no agreement to arbitrate.” The district court held an evidentiary hearing on Patera’s motion to stay arbitration, and several exhibits were received without objection, including the subcontract agreement and the arbitration demand. Patera took the position that the arbi- tration provision in the subcontract was governed by the UAA and not the Federal Arbitration Act (FAA). 2 Patera argued that under the UAA, the arbitration provision was unenforce- able for the following reasons: (1) specific notice language required by § 25-2602.02 was not included, (2) claims “arising out of personal injury based on tort” are not subject to arbi- tration under § 25-2602.01(f)(1), (3) Ferrandino exceeded the 1 See Neb. Rev. Stat. §§ 25-2601

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Bluebook (online)
993 N.W.2d 679, 314 Neb. 875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcpherson-v-walgreens-boot-alliance-neb-2023.