Saltzman v. Thomas Jefferson University Hospitals, Inc.

166 A.3d 465, 2017 Pa. Super. 206, 2017 WL 2823523, 2017 Pa. Super. LEXIS 488
CourtSuperior Court of Pennsylvania
DecidedJune 30, 2017
DocketSaltzman, L. v. Thomas Jefferson Univ. Hospital No. 2593 EDA 2015
StatusPublished
Cited by37 cases

This text of 166 A.3d 465 (Saltzman v. Thomas Jefferson University Hospitals, Inc.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saltzman v. Thomas Jefferson University Hospitals, Inc., 166 A.3d 465, 2017 Pa. Super. 206, 2017 WL 2823523, 2017 Pa. Super. LEXIS 488 (Pa. Ct. App. 2017).

Opinion

OPINION BY

MOULTON, J.:

Thomas Jefferson University Hospitals, Inc. and Jefferson Medical Care (together, “Jefferson”) appeal from the July 17, 2015 order entered in the Philadelphia County Court of Common Pleas overruling Jefferson’s preliminary objections to the complaint of Leslie Saltzman, D.O. and ordering Jefferson to file an answer within 20 days. 1 We reverse and remand.

The trial court set forth the following facts:

[Saltzman] began working for Jefferson in August 2014 at the Myrna Brind Center for Integrative Medicine. A few days prior to her start date, [Saltzman] *469 signed an employment contract with Defendant, Jefferson Medical Care [(“JMC”)]. This employment contract contains a portion that the parties refer to as the Physician Service Agreement [ (“Agreement”) ], and it contains an arbitration clause that reads as follows:
Dispute Resolution. In the event of any controversy or claim between the parties hereto arising under or related to this Agreement or an[y] breach thereof, the parties shall confer in good faith in an attempt to resolve the dispute informally. If the controversy is not satisfactorily resolved at this level, then the grieving party shall inform the other party in writing of its intention to pursue arbitration, such notice stating the substance of the controversy. If the matter is not resolved within thirty (30) days after such notice, then the controversy shall be settled by binding arbitration in Philadelphia, Pennsylvania in accordance with the American Health Lawyers Association Alternative Dispute Resolution Services Rules of Procedure for Arbitration then in effect. The Defendant, Thomas Jefferson
University Hospital[s], Inc. [(“TJUH”)], was not a party to the Physician Service Agreement, and no representative signed the Agreement on behalf of [TJUH].
[Saltzman] avers that while she was working at Myrna Brind Center for Integrative Medicine, she learned that [Jefferson was] engaging in wrongdoing. Specifically, [Saltzman] avers that [Jefferson] ... w[as] holding forth a chiro-praetor, George Zabrecky, as a licensed doctor of medicine, when he did not hold such credentials. She avers that [Jefferson] delegated medical responsibilities to Mr. Zabrecky despite [its] knowledge that he was not qualified, trained, experienced, licensed or certified-to perform these duties. [Saltzman] avers that she reported this wrongdoing on or about October 15, 2014, October 24, 2014, and October 28, 2014. [Saltzman’s] employment was terminated on November 11, 2014.

Opinion, 7/11/16, at 1-2 (“1925(a) Op.”).

On May 8, 2015, Saltzman filed a complaint against Jefferson, alleging claims for retaliation in violation of the Pennsylvania Whistleblower Law, 43 P.S. §§ 1421-28, and common law wrongful termination. Jefferson filed preliminary objections, seeking to compel arbitration pursuant to the Agreement. On July 17, 2015, the trial court overruled the preliminary objections and ordered Jefferson to file an answer within 20 days.

In its opinion, the trial court offered three reasons for denying Jefferson’s preliminary objections. First, the trial court stated that “[t]he fact that [TJUH] was not a party to the Physician Service Agreement was a critical factor” in its decision not to compel arbitration. 1925(a) Op. at 3-4. The court explained that because TJUH “was not a party to the ... Agreement, [Saltzman] could not knowingly waive her right to sue [TJUH] in a court of law when she” signed the Agreement. Id. at 3. 2 Second, the trial court found that *470 the “Agreement was an unconscionable contract of adhesion” that unreasonably-favored Jefferson. Id. at 4. In making this determination, the court asserted that Jefferson failed to establish that Saltzman read and understood the consequences of the arbitration provision before signing the Agreement. Id. Third, the trial court concluded that “[compelling arbitration in this matter would be fundamentally incompatible with the remedial and deterrent functions of the” Whistleblower Law, finding that “[t]he citizens of the Commonwealth of Pennsylvania, and the public at large, have an interest in the public resolution of’ Saltzman’s claims. Id. at 5. Jefferson timely appealed to this Court.

Jefferson raises the following issues on appeal:

1. Did the Trial Court abuse its discretion and/or err as a matter of law when it failed to consider, let alone apply, the liberal policy favoring arbitration agreements under the Federal Arbitration Act (“FAA”) and Pennsylvania law and overruled Jefferson’s preliminary objections seeking to compel arbitration, when there exists a valid enforceable agreement to arbitrate that both JMC and TJUH may enforce against Saltzman and when the claims asserted by Saltzman against Jefferson fall within the scope of the Arbitration Provision because the claims constitute “any controversy or claim between the parties to the [Agreement]” and “aris[e] under or relatfe] to [the Agreement] or any breach thereof’?
2. Did the Trial Court abuse its discretion or err as a matter of law in overruling Jefferson’s preliminary objections based on the finding that the Arbitration Provision was an unenforceable unconscionable contract of adhesion, especially when the Trial Court:
a. did not determine both that: (i) one of the parties lacked a meaningful choice before accepting the terms of the provision (procedural unconscionability); and (ii) the provision unreasonably favors Jefferson (substantive unconsciona-bility);
b. improperly placed the burden on Jefferson to present evidence disproving procedural unconsciona-bility when Saltzman did not initially present such evidence, and, in the purported absence of such evidence from Jefferson, found the Arbitration Provision unconscionable and unenforceable; and
c. the evidence Jefferson presented (some of which the Trial Court erred in not considering) showed that the Arbitration Provision was not procedurally and/or substantively unconscionable?
3.Did the Trial Court abuse its discretion when it overruled the preliminary objections on the basis of public policy and/or the “nature of the claims,” when:
a. There is no basis in the Whistle-blower Law to do so (i.e., the Arbitration Provision is not in derogation of any right Saltzman has been provided by statute and there is no inherent conflict between arbitration and the Whistle-blower Law’s underlying purpose);
*471 b. The public policy on which the Trial Court relied — the right of the public to be privy to the litigation of Saltzman’s claims — is not sufficiently well-defined and dominant, as the law requires, to justify rendering the Arbitration Provision unenforceable based on public policy;
c.

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Bluebook (online)
166 A.3d 465, 2017 Pa. Super. 206, 2017 WL 2823523, 2017 Pa. Super. LEXIS 488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saltzman-v-thomas-jefferson-university-hospitals-inc-pasuperct-2017.