Rutgers, Etc. v. American Association of University Professors, Etc.

New Jersey Superior Court Appellate Division·Decided October 6, 2025·No. A-3986-23·Unpublished

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION This opinion shall not "constitute precedent or be binding upon any court ." Although it is posted on the internet, this opinion is binding only on the parties in the case and its use in other cases is limited . R. 1:36-3.

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-3986-23

RUTGERS, THE STATE UNIVERSITY OF NEW JERSEY,

Plaintiff-Appellant,

v.

AMERICAN ASSOCIATION OF UNIVERSITY PROFESSORS - BIOMEDICAL AND HEALTH SCIENCES OF NEW JERSEY,

Defendant-Respondent.

Argued September 10, 2025 – Decided October 6, 2025 Before Judges Gooden Brown and DeAlmeida.

On appeal from an interlocutory order of the Superior Court of New Jersey, Law Division, Middlesex County, Docket No. L-4768-23.

James P. Lidon argued the cause for appellant (McElroy, Deutsh, Mulvaney & Carpenter, LLP, attorneys; James P. Lidon, of counsel and on the briefs).

Justin Schwam argued the cause for respondent (Weissman & Mintz, LLC, attorneys; Justin Schwam, of counsel and on the brief).

PER CURIAM Plaintiff Rutgers, the State University of New Jersey appeals from the Law Division's July 3, 2024 order confirming an arbitration award reinstating a part- time professor and granting the application of the professor's union, defendant American Association of University Professionals – Biomedical and Health Sciences of New Jersey, for attorney's fees and costs. Because the order does not set the amount of attorney's fees and costs awarded to defendant it is interlocutory. Plaintiff's notice of appeal was therefore premature and did not establish jurisdiction in this court.

However, because the parties have briefed the substantive issues with respect to the validity of the arbitration award and in light of defendant's failure to address the attorney's fees award in its merits brief, we sua sponte grant leave to appeal from the July 3, 2024 order. We affirm the provisions of the July 3, 2024 order confirming the arbitration award and reverse the provisions of the July 3, 2024 order awarding attorney's fees and costs to defendant.

A-3986-23

I.

On January 5, 2009, the former University of Medicine and Dentistry of New Jersey ("UMDNJ") appointed Dr. Lily Arora, a psychiatrist, as a part-time Physician Specialist for the University Behavioral Health Center (UBHC). In that position, Arora evaluated patients for medication.

On July 8, 2010, UMDNJ appointed Arora as a part-time Clinical Assistant Professor, non-tenure, in the Department of Psychiatry (DOP) at the UMDNJ – New Jersey Medical School (NJMS) on a part-time basis. To maintain her part-time employee status and benefits Arora was required to work twenty hours per week. Arora's responsibilities included "patient care activities[,]" providing "direct clinical care to UBHC patients[,]" and developing, implementing, and evaluating "plans for treatment of UBHC patients." Under the terms of the appointment, Arora agreed "to take steps to ensure that [her] services [were] provided in accordance with requirement s of the Medicare and Medicaid Programs and third-party payors."

At around this time, Arora started a private practice treating patients on a cash-only basis. She was not registered as a provider with commercial insurance carriers. Arora disclosed her private practice to UMDNJ, which approved her

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outside employment. She treated patients at both UBHC and her private practice from the time of her appointment to June 2012.

In July 2012, UBHC contracted with the New Jersey Department of Health (DOH) to provide a psychiatrist to serve as independent clinical chair of Involuntary Medication Administration Review (IMAR) panels at three State psychiatric hospitals for twenty hours per week. IMAR panels made determinations about the administration of psychotropic medications to patients without informed consent. Arora was the primary UBHC psychiatrist who provided independent psychiatric services for IMAR panels from July 2012 to December 2019. During that time, she worked twenty hours per week on IMAR panels, did not treat UBHC patients, and continued to maintain her private practice.

On August 24, 2015, plaintiff reappointed Arora as Clinical Assistant Professor retroactive to July 1, 2015. 1 The appointment letter reiterated Arora's agreement "to ensure that [her] services [were] provided in accordance with requirements of the Medicare and Medicaid Programs and third-party payors."

1 Effective July 1, 2013, the New Jersey Medical and Health Sciences Education Restructuring Act, N.J.S.A. 18A:64M-1 to -43, incorporated certain schools, centers, and institutes of the former UMDNJ into plaintiff. At that time, UBHC became part of plaintiff.

A-3986-23

On June 13, 2016, plaintiff reappointed Arora as a Clinical Assistant Professor on the professional practice track, non-tenure, in the NJMS DOP.

On April 26, 2018, plaintiff reappointed Arora as a Clinical Assistant Professor, non-tenure, on the professional practice track in the NJMS DOP. Her appointment was for one year from July 1, 2017 to June 30, 2018. The appointment letter directed Arora to enroll in the "Medicaid and Medicare Programs as required" and again required her to provide services in accordance with the requirements of those programs and third-party providers.

Arora was required to comply with Rutgers Policy 60.9.21, "Outside Employment." That policy provides the "primary work obligation" of all faculty members, including part-time faculty members, "is to the [u]niversity, school or other operational unit where he or she is employed." In addition, the policy permits faculty members to engage in outside employment only if doing so "does not constitute a conflict of interest" or "diminish" the faculty member's "efficiency in performing his or her primary work obligation at the University." Failure to comply with any policy "shall result in disciplinary action up to and including termination."

By letter dated June 22, 2018, plaintiff notified Arora of her promotion to Associate Professor, non-tenure, on the professional practice track at NJMS

A-3986-23

DOP for a one-year term from July 1, 2018 to June 30, 2019. According to the appointment letter, Arora's responsibilities were those "assigned by [her] Department Chair and/or Division Chief/Program Director." Under this appointment, Arora continued to work twenty hours per week as the independent psychiatrist on IMAR panels and did not treat UBHC patients.

Plaintiff's contract with DOH expired on June 30, 2019, but remained in holdover status. As of December 30, 2019, plaintiff and DOH had entered a new contract requiring plaintiff to provide an independent psychiatrist for IMRA panels for only sixteen hours per week.

On December 6, 2019, Arora's supervisor, Michele Miller, informed her of the reduction in IMRA hours under the new contract with DOH. She told Arora if she wished to maintain her part-time employee status and benefits, she would be required to perform four hours per week of telepsychiatry services with UBHC patients. Miller directed Arora to enroll as a provider for insurance carriers to allow plaintiff to be paid for her telepsychiatry services.

Arora was concerned about the effect enrolling as a provider with insurance carriers would have on her cash-only private practice. She believed if she enrolled with insurance carriers she would be required to accept those carriers' insurance payments for her private patients, ending her cash-only

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relationship with those patients. 2 She asked Miller if she could perform non- clinical duties for four hours per week to maintain her part-time employee status and benefits.

Arora also requested copies of the commercial insurance contracts she would have to sign or agree to enroll under to determine if her concerns about her private practice were valid. Plaintiff refused to provide copies of its commercial insurance contracts to Arora.

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