Norwalk Medical Group, P.C. v. Yee

199 Conn. App. 208
CourtConnecticut Appellate Court
DecidedJuly 21, 2020
DocketAC42511
StatusPublished
Cited by1 cases

This text of 199 Conn. App. 208 (Norwalk Medical Group, P.C. v. Yee) is published on Counsel Stack Legal Research, covering Connecticut Appellate Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norwalk Medical Group, P.C. v. Yee, 199 Conn. App. 208 (Colo. Ct. App. 2020).

Opinion

*********************************************** The “officially released” date that appears near the be- ginning of each opinion is the date the opinion will be pub- lished in the Connecticut Law Journal or the date it was released as a slip opinion. The operative date for the be- ginning of all time periods for filing postopinion motions and petitions for certification is the “officially released” date appearing in the opinion.

All opinions are subject to modification and technical correction prior to official publication in the Connecticut Reports and Connecticut Appellate Reports. In the event of discrepancies between the advance release version of an opinion and the latest version appearing in the Connecticut Law Journal and subsequently in the Connecticut Reports or Connecticut Appellate Reports, the latest version is to be considered authoritative.

The syllabus and procedural history accompanying the opinion as it appears in the Connecticut Law Journal and bound volumes of official reports are copyrighted by the Secretary of the State, State of Connecticut, and may not be reproduced and distributed without the express written permission of the Commission on Official Legal Publica- tions, Judicial Branch, State of Connecticut. *********************************************** THE NORWALK MEDICAL GROUP, P.C., ET AL. v. ARTHUR YEE (AC 42511) DiPentima, C. J., and Alvord and Pellegrino, Js.

Syllabus

The plaintiffs, a medical group, together with former physician shareholders of the medical group, sought to vacate an arbitration award in favor of the defendant, who filed an application to confirm the award, which was issued in connection with the plaintiffs’ alleged breach of a shareholder employment agreement. The arbitrator denied and dismissed the defen- dant’s claims against the physician shareholders but issued an award on his claim against the medical group. In their application to vacate the award, the plaintiffs claimed that the award was not mutual, final and definite because the arbitrator had failed to allocate arbitration costs, expenses and compensation and set forth a reasoned award with respect to the issue of attorney’s fees, having failed to award attorney’s fees to the physician shareholders. The trial court denied the plaintiffs’ application to vacate the award, granted the defendant’s application to confirm the award and rendered judgments thereon, from which the plaintiffs appealed to this court. Held that the trial court properly granted the defendant’s motion to confirm the arbitration award: the plaintiffs failed to sustain the heavy burden necessary to vacate an arbitration award pursuant to statute (§ 52-418) as they failed to present a reasoned legal argument for why the award should be vacated on the ground that the arbitrator failed to allocate arbitration costs, expenses and compensation, the arbitrator’s award of attorney’s fees was reasoned and the arbitrator’s failure to explain his decision denying attorney’s fees for the physician shareholders did not constitute grounds to vacate the award. Argued February 11—officially released July 21, 2020

Procedural History

Application to vacate an arbitration award, brought to the Superior Court in the judicial district of Stamford- Norwalk, where the defendant filed an application to confirm the award; thereafter, the cases were consoli- dated and tried to the court, Hon. Taggart D. Adams, judge trial referee; judgment denying the application to vacate and judgment granting the application to con- firm, from which the plaintiff appealed to this court. Affirmed. James C. Riley, with whom, on the brief, was Thomas P. O’Connor, for the appellants (plaintiffs). Anita D. Di Gioia, for the appellee (defendant). Opinion

DiPENTIMA, C. J. Our courts ‘‘undertake judicial review of arbitration awards in a manner designed to minimize interference with an efficient and economical system of alternative dispute resolution. . . . Such a limited scope of judicial review is warranted given the fact that the parties voluntarily bargained for the deci- sion of the arbitrator and, as such, the parties are pre- sumed to have assumed the risk of and waived objection to that decision.’’ (Citations omitted; internal quotation marks omitted.) Industrial Risk Insurers v. Hartford Steam Boiler Inspection & Ins. Co., 258 Conn. 101, 110, 779 A.2d 737 (2001). Led by these overarching princi- ples, we consider the present appeal challenging the propriety of an arbitration award rendered in favor of the defendant, Arthur Yee. The plaintiffs, The Norwalk Medical Group, P.C. (medical group), and thirteen indi- vidual physicians (physicians) who formerly were mem- bers of the medical group,1 appeal from the judgment of the trial court denying their application to vacate an arbitration award and the judgment of the trial court granting the application to confirm the arbitration award filed by the defendant. On appeal, the plaintiffs claim that the court improperly confirmed the award because it was not mutual, final and definite due to the failure of the arbitrator to (1) allocate arbitration costs, expenses and compensation and (2) set forth a reasoned award with respect to the issue of attorney’s fees. We disagree and, accordingly, affirm the judgments of the trial court. The following facts, as found by the arbitrator or otherwise undisputed, and procedural history are nec- essary for our resolution of this appeal. The defendant, a physician licensed to practice medicine in the state of Connecticut, became an employee of the medical group on August 1, 1988, and, some twenty years later, executed a written shareholder employment agreement (agreement) with the medical group on or about July 7, 2008. Paragraph 30 of the agreement provided: ‘‘Any controversy, claim, or breach arising out of or relating to this [a]greement shall be submitted for resolution to the American Arbitration Association [(AAA)] before one arbitrator. Such arbitration shall be held in Nor- walk, Connecticut, in accordance with the rules and practice of the [AAA] then pertaining, and the judgment upon the award rendered shall be final and determina- tive and may be entered by consent in any court having jurisdiction thereof. The arbitrator shall have no author- ity to order punitive or exemplary damages but may award reasonable attorney’s fees to the prevailing party.’’ On October 19, 2016, the defendant e-mailed the chief executive officer of the medical group regarding his intention to retire from the practice of medicine prior to the merger of the medical group with another medical practice. The defendant retired from the medical group on or about June 1, 2017. On August 7, 2017, the defendant filed a demand for arbitration, claiming that the plaintiffs had breached the agreement and sought approximately $220,242 in damages, as well as attorney’s fees and arbitration costs. The defendant claimed that, following his retire- ment, he was entitled to a buy-out from the medical group, pursuant to appendix II of the agreement, in the amount of $215,042. He also sought an additional $5000 for his 250 shares of the medical group.2 The medical group denied any obligation to pay the defendant. The defendant’s demand was directed to all the plaintiffs. In a response dated August 29, 2017, the plaintiffs denied the defendant’s material allegations and asserted that the physicians were not parties to the agreement and that the demand for arbitration had failed to state a claim against these individuals. The plaintiffs further asserted that the medical group had ‘‘ceased the active conduct of its business and [was] in the process of winding up its affairs and liquidating its assets.

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Bluebook (online)
199 Conn. App. 208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norwalk-medical-group-pc-v-yee-connappct-2020.