Patricia Norwood, V. Multicare Health System

CourtCourt of Appeals of Washington
DecidedMay 21, 2024
Docket57864-6
StatusPublished

This text of Patricia Norwood, V. Multicare Health System (Patricia Norwood, V. Multicare Health System) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patricia Norwood, V. Multicare Health System, (Wash. Ct. App. 2024).

Opinion

Filed Washington State Court of Appeals Division Two

May 21, 2024 IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II PATRICIA NORWOOD, an individual, No. 57864-6-II

Petitioner,

v.

MULTICARE HEALTH SYSTEM, a Washington State Non-Profit Corporation, MULTICARE CONNECTED CARE, LLC, a PUBLISHED OPINION Washington State Limited Liability Company, TACOMA ANESTHESIA ASSOCIATES, INC., P.S., RAINIER ANESTHESIA ASSOCIATES, P.C. and JOHN DOE 1-8,

Respondents.

MAXA, J. – Dr. Patricia Norwood appeals the trial court’s order granting a motion to

compel arbitration of her claims against Tacoma Anesthesia Associates (Tacoma), Rainier

Anesthesia Associates (Rainier), MultiCare Health System, and MultiCare Connected Care, LLC

(collectively, MultiCare). The motion to compel arbitration was based on an arbitration clause in

Norwood’s contract with LT Medical, LLC (LT), a company that contracts with health care

professionals who travel to work at medical facilities on a temporary basis. Tacoma, Rainier,

and MultiCare were not signatories to that contract.

Norwood is an anesthesiologist. She signed a “Services Agreement” with LT, agreeing

to provide services to LT’s clients as an independent contractor of LT. The Services Agreement

included an arbitration provision that mandated arbitration in Atlanta, Georgia of “any

controversy or claim arising out of or relating to the interpretation, enforcement or breach of” the

agreement. No. 57864-6-II

Norwood worked for a short time for both Tacoma and Rainier at MultiCare facilities.

During her time at both facilities, Norwood alleged that she witnessed unsafe medical practices.

She claims that after she reported these unsafe practices she was forced to resign from Tacoma

and was terminated from Rainier. Norwood sued Tacoma, Rainier, and MultiCare, asserting

claims of tortious interference with contractual relations, wrongful constructive discharge in

violation of public policy, wrongful discharge in violation of public policy, and intentional

infliction of emotional distress.

Tacoma, Rainier, and MultiCare moved to arbitrate Norwood’s claims pursuant to the

arbitration provision in her Services Agreement with LT. The trial court granted their motion to

compel arbitration and ordered that the arbitration take place in Atlanta.

We hold that (1) the trial court did not err in ordering arbitration because equitable

estoppel allows enforcement of the arbitration provision regarding Norwood’s claims in that her

claims are intertwined with the provisions of the Services Agreement, and (2) the trial court did

not err in ordering arbitration in Atlanta because it is not clear that Georgia law will apply and

therefore that arbitration in Atlanta will contravene Washington public policy.

Accordingly, we affirm the trial court’s order granting the motion to compel arbitration of

Norwood’s claims in Atlanta.1

FACTS Background

Norwood is a practicing anesthesiologist. She travels to hospitals and medical care

centers to work on a temporary basis.

1 Because of our holding, we do not address the alternative arguments of Tacoma, Rainier, and MultiCare that they were third party beneficiaries of the Services Agreement and that the decision on applicability of the arbitration provision should be delegated to the arbitrator.

2 No. 57864-6-II

MultiCare operates several medical facilities in Washington. Tacoma and Rainier

provide services at various facilities under contracts with MultiCare.

LT finds opportunities for health care professionals, working as independent contractors,

to fill temporary needs at hospitals and other medical facilities around the country. An affiliate

of LT is LocumTenens.com.

LT Services Agreement

In 2017, Norwood entered into a Services Agreement with LT. Under the Services

Agreement, Norwood agreed to provide professional medical services to LT’s clients or a

client’s assigned facility as an independent contractor of LT. LT agreed to offer Norwood’s

services to its clients, consistent with the Client Agreements with those clients. LT also agreed

to pay Norwood for the services she provided to LT’s clients. The agreement stated that

Norwood at all times would be acting as LT’s independent contractor and nothing in the

agreement was intended to create an employer/employee relationship.

Under the Services Agreement, Norwood acknowledged that her medical staff

appointment and privileges at an assigned facility may terminate upon “the termination of your

service at an assigned facility by Client or [LT] for any other reason whatsoever, without

recourse to any hearing and appeal procedure.” Clerk’s Papers (CP) at 8-9. Norwood also

agreed to “release the Client, the assigned facility and [LT] and [LT] affiliates from any claim or

liability whatsoever . . . arising out of or related to any . . . termination, or loss of medical staff

appointment.” CP at 9.

The Services Agreement included an arbitration provision:

Any controversy or claim arising out of or relating to the interpretation, enforcement or breach of this Services Agreement or the relationship between the parties hereto shall be resolved by binding arbitration in accordance with the Commercial Arbitration Rules for the American Arbitration Association at any

3 No. 57864-6-II

arbitration hearing to be held in Atlanta, Georgia. If LT prevails, Contractor agrees to pay the cost of the arbitrator(s) and AAA fees and for reasonable expenses incurred by LT in connection with the arbitration, including attorneys’ fees. This paragraph shall be specifically enforceable. The award rendered by the arbitrator(s) may be entered and enforced in any court of competent jurisdiction.

CP at 9 (emphasis added).

The Services Agreement stated that the laws of the state of Georgia would apply to “this

Services Agreement.” CP at 10.

LT Client Agreements

LocumTenes.com entered into a Client Agreement with Rainier in April 2011.

LocumTenes.com entered into a Client Agreement with Tacoma in December 2017. The

agreements related to LT’s provision of temporary medical providers to Rainier and Tacoma.

LT agreed to use its best efforts to present acceptable providers, and Rainier and Tacoma agreed

to pay LT specified fees for the providers. Similar to the Services Agreement, the Client

Agreements stated that providers were independent contractors. The Client Agreements also

included an arbitration provision nearly identical to the arbitration provision included in the

Services Agreement.

LT did not enter into any agreements with MultiCare. However, MultiCare entered into

agreements with Tacoma and Rainier to provide medical services.

Norwood Work at Tacoma and Rainier

In March 2018, Norwood was assigned to work at Tacoma. Norwood alleged that while

working for Tacoma at MultiCare hospitals, she observed on three occasions a patient fall off an

operating room table. Norwood alleged that she reported the incidents to Tacoma, but no action

was taken. Norwood alleged that she resigned from Tacoma in May 2019 because of safety

issues that were not being addressed.

4 No. 57864-6-II

Norwood began work at Rainier in mid-2019. In June or July of 2019, Norwood alleged

that she observed a patient fall off an operating room table at a MultiCare hospital. She alleged

that she reported the incident to the patient’s surgeons, but no follow-up took place.

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