Mulqueen v. Radiology Associates of Albuquerque

CourtNew Mexico Court of Appeals
DecidedFebruary 4, 2019
DocketA-1-CA-35852
StatusUnpublished

This text of Mulqueen v. Radiology Associates of Albuquerque (Mulqueen v. Radiology Associates of Albuquerque) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mulqueen v. Radiology Associates of Albuquerque, (N.M. Ct. App. 2019).

Opinion

MULQUEEN V. RADIOLOGY ASSOCIATES OF ALBUQUERQUE

This memorandum opinion was not selected for publication in the New Mexico Appellate Reports. Please see Rule 12-405 NMRA for restrictions on the citation of unpublished memorandum opinions. Please also note that this electronic memorandum opinion may contain computer-generated errors or other deviations from the official paper version filed by the Court of Appeals and does not include the filing date.

CATHERINE MULQUEEN, D.O., Plaintiff-Appellant, v. RADIOLOGY ASSOCIATES OF ALBUQUERQUE, P.A.; JOSEF NISENBAUM, D.O.; BRIAN POTTS, M.D.; KENT HOOTMAN, M.D.; DOUGLAS MEEK, M.D.; CHRISTOPHER BAUMAN, M.D.; and RENEE BUTLER-LEWIS, M.D., Defendants-Appellees.

No. A-1-CA-35852

COURT OF APPEALS OF NEW MEXICO

February 4, 2019

APPEAL FROM THE DISTRICT COURT OF BERNALILLO COUNTY, Carl J. Butkus, District Judge

COUNSEL

L. Helen Bennett, P.C., L. Helen Bennett, Albuquerque, NM, Sandoval Firm, Richard Sandoval, Santa Fe, NM, Valdez & White, Timothy White, Albuquerque, NM, for Plaintiff

Rodey, Dickason, Sloan, Akin & Robb, P.A., Jocelyn Drennan, Scott Gordon, Albuquerque, NM, for Defendants

JUDGES

JULIE J. VARGAS, Judge. WE CONCUR: M. MONICA ZAMORA, Chief Judge, MEGAN P. DUFFY, Judge

AUTHOR: JULIE J. VARGAS

MEMORANDUM OPINION VARGAS, Judge.

{1} Plaintiff asks us to reverse the district court’s order compelling arbitration. She argues that the claims stated in her complaint are: (1) outside the scope of the arbitration agreement, (2) that the Defendants failed to satisfy the agreement’s conditions precedent and thus waived their right to compel arbitration, and (3) that individual Defendants who were not signatories to the agreement cannot compel arbitration of the claims against them. We conclude that Plaintiff’s claims are within the scope of the arbitration agreement, that Defendants did not expressly waive arbitration, and that Plaintiff is estopped from preventing Defendants from compelling arbitration. We affirm the district court’s order.

BACKGROUND

{2} Catherine T. Mulqueen (Plaintiff) left the employ of Radiology Associates of Albuquerque, P.A. (RAA) on January 1, 2014. After leaving RAA, Plaintiff filed suit against RAA and six of RAA’s shareholders: Joseph Nisenbaum, D.O., Brian Potts, M.D., Kent Hootman, M.D., Douglas Meek, M.D., Christopher Bauman, M.D., and Renee Butler-Lewis, M.D. (collectively, Shareholder Defendants). Plaintiff’s complaint asserts nine counts: “Count I. Tortious Interference with Contractual Relations Against the Individual Defendants”; “Count II. Oppressive Conduct [and] Breach of Fiduciary Duties by Individual Defendants”; “Count III. Fraud and Misrepresentation by All Defendants”; “Count IV. Breach of Contract, Express or Implied by RAA”; “Count V. Breach of the Implied Covenant of Good Faith and Fair Dealing by RAA”; “Count VI. Conspiracy Among Individual Defendants”; “Count VII. Prima Facie Tort Against All Defendants”; “Count VIII. Discrimination in Violation of the New Mexico Human Rights Act”; and “Count IX. Retaliation.” Plaintiff brought Counts III, VII, VIII, and IX against RAA and the Shareholder Defendants (collectively, Defendants), Count I, Count II, and Count VI against Shareholder Defendants alone, and Count IV and Count V against RAA alone. In response, Defendants filed a motion to dismiss the complaint and compel arbitration or, alternatively, to stay the proceedings and compel arbitration. Following full briefing and a hearing on the motion, the district court granted Defendants’ motion, ordered all of Plaintiff’s claims to be arbitrated according to the alternative dispute resolution provision of the employment agreement Plaintiff signed with RAA, and stayed further proceedings pending arbitration.

{3} When Plaintiff joined RAA, she signed a contract entitled, “Physician Employment Agreement for Shareholders” (the Agreement). The Agreement contained a clause providing for arbitration:

7.2 Alternate Dispute Resolution: [RAA and Plaintiff] agree that any dispute arising from the employment relationship (including, but not limited to, claims arising under contract, common law, or Federal or State statutes and regulations) will first be subject to negotiation. The parties agree to discuss their dispute in an attempt at resolution. If resolution fails and an impasse is reached in negotiation, the parties shall submit the dispute to mediation at the request of either party. A request should be submitted by either party promptly.

A mediator located in New Mexico should be selected within fourteen (14) days of the parties’ request and a mediation session should be scheduled in Albuquerque, New Mexico within fourteen (14) days of the selection of the mediator. Mediators shall be selected upon agreement of the parties from any list maintained by the American Arbitration Association or the U.S. District Court for the District of New Mexico or the National Health Lawyers Association, or the parties may agree upon any other person as a mediator.

If the mediation process fails, the dispute shall be submitted to binding arbitration. Within fourteen (14) days of the conclusion of the mediation session, parties may select one arbitrator by agreement or each party shall select one arbitrator who will choose a third. The arbitrator or arbitrators shall hear the dispute and determine their decision by a majority vote. The arbitration shall be governed by the Commercial Arbitration Rules of the American Arbitration Association.

The parties may cooperatively extend the time frame limitations in the preceding paragraphs. The parties agree to share the cost of any mediation and arbitration by each paying one-half of the total cost. The parties will pay their own attorney[] fees if any.

The only signatories to the Agreement are Plaintiff and Defendant Potts, who signed the Agreement on behalf of RAA in his capacity as president.

DISCUSSION

{4} Plaintiff appeals the district court’s order compelling arbitration, arguing that the claims stated in her complaint were not within the scope of the arbitration agreement; that the arbitration agreement was not enforceable because the conditions precedent stated therein were not satisfied; Defendants, therefore, waived any right to enforce the agreement; and that as non-signatories to the arbitration agreement, the Shareholder Defendants could not enforce the Agreement. We address each argument in turn.

I. Scope of Arbitration

{5} We begin with the question of whether the allegations set forth in Plaintiff’s complaint fall within the scope of the Agreement. See NMSA 1978, Section 44-7A-7(b) (2001) (requiring the court to determine “whether an agreement to arbitrate exists or a controversy is subject to an agreement to arbitrate”). As a preliminary matter, we note that Plaintiff does not challenge the validity of the Agreement or the arbitration clause therein; nor does she challenge the district court’s determination that the arbitration clause is valid. See Rule 12-318(A)(4) NMRA (requiring that brief in chief “shall set forth a specific attack on any finding, or the finding shall be deemed conclusive”); Flemma v. Halliburton Energy Servs., Inc., 2013-NMSC-022, ¶ 28, 303 P.3d 814 (stating that “[w]hether a valid contract to arbitrate exists is a question of state contract law” and that a legally valid contract must be “supported by an offer, . . . acceptance, consideration, and mutual assent” (internal quotation marks and citations omitted)). Instead, Plaintiff claims that the “shareholder and tort claims” in her complaint are outside the scope of the Agreement and “are not based on the terms or conditions of [her] employment agreement with RAA,” but rather on RAA’s bylaws and articles of incorporation.

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Mulqueen v. Radiology Associates of Albuquerque, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mulqueen-v-radiology-associates-of-albuquerque-nmctapp-2019.