State of Maryland Central Collection Unit v. Gettes

584 A.2d 689, 321 Md. 671, 1991 Md. LEXIS 24
CourtCourt of Appeals of Maryland
DecidedJanuary 23, 1991
DocketNo. 27
StatusPublished
Cited by8 cases

This text of 584 A.2d 689 (State of Maryland Central Collection Unit v. Gettes) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State of Maryland Central Collection Unit v. Gettes, 584 A.2d 689, 321 Md. 671, 1991 Md. LEXIS 24 (Md. 1991).

Opinions

RODOWSKY, Judge.

This District Court collection case is an offshoot of a Health Care Malpractice Claims Act case. At issue is liability for arbitration costs. The panel assessed part of the arbitration costs against, and the State of Maryland now seeks to collect those costs from, the party who prevailed on the merits in arbitration, who later prevailed on the merits in the adversary’s action to nullify, but who did not seek any form of direct judicial review of the panel’s adverse award of partial costs. As we explain below, the State may recover the costs in this action.

[674]*674The respondent, Norton I. Gettes, M.D., is a health care provider. One of his patients filed and arbitrated a claim against him pursuant to the Maryland Health Care Malpractice Claims Act (the Act), Md.Code (1974, 1989 Repl.Vol., 1990 Cum.Supp.), §§ 3-2A-01 through 3-2A-09 of the Courts and Judicial Proceedings Article (CJ).1 The arbitration panel rendered its decision on a preprinted form containing three sections, one section each for liability, damages, and costs. As to liability, the panel found in favor of Dr. Gettes so that no damages were awarded. In the costs section of the form the panel inserted: “[T]o be equally divided between the parties.” No amount of costs was inserted. The Health Claims Arbitration Office (HCAO) subsequently determined that each party to the arbitration was to pay $810.66 in costs.

The claimant timely gave notice of rejection and brought an action to nullify in the Eighth Judicial Circuit. That action was tried to a jury which returned its verdict in favor of the defendant, Dr. Gettes. The clerk entered judgment on the docket in favor of the defendant “for costs of suit.”

In May 1981 when the arbitration award was rendered, and on two occasions in 1988, the HCAO made written demand on the parties to the arbitration, through their counsel, for payment of the arbitration costs. Then, in 1989, the State instituted the action which is now before us by filing in the District Court of Maryland sitting in Baltimore City a complaint against Dr. Gettes claiming $810.66, without any interest. The complaint alleged that the arbitration panel had determined that the administrative costs of the proceedings were to be divided, that Dr. Gettes had [675]*675been billed for his share of the costs “which he has refused to pay,” and that “[u]nable to obtain payment,” the State “brings this suit in the amount of $810.66.” The District Court entered judgment in favor of Dr. Gettes.

The State appealed to the Circuit Court for Baltimore City which entered judgment in favor of Dr. Gettes. Finding merit in the positions of each party, the circuit court ruled in favor of Dr. Gettes because “the passive position taken by the Health Claims Board by letting this matter go over these many years ... should throw them out of Court at this late date.”

We granted the State’s petition for certiorari.

In response to the ground of decision by the circuit court in this action, the State submits that neither the statute of limitations nor laches applies to the State when it sues in its sovereign capacity in its own courts, citing Central Collection Unit, State of Md. v. Atlantic Container Line, Ltd., 277 Md. 626, 628-29, 356 A.2d 555, 557 (1976), as to the statute of limitations, and Salisbury Beauty Schools v. State Bd. of Cosmetologists, 268 Md. 32, 63-64, 300 A.2d 367, 384-85 (1973), as to laches. Dr. Gettes does not dispute this analysis.

The parties to this appeal also share common ground in recognizing that an arbitration panel is not restricted to assessing costs against the losing party. CJ § 3-2A-05(f) provides:

“The award shall include an assessment of costs, including the arbitrators’ fees. If there is no panel determination, the panel chairman shall assess costs.”

We have held that the dictate of the above language

“is that, regardless of whom the award favors, included in the award shall be an assessment of costs. [The above quoted] subsection contains no prohibition against assessing the costs against the party [i]n whose favor the award is made. On the face of the statutes the assessment of costs is left to the discretion of the arbitration panel. Thus, in the exercise of that discretion, an assessment of [676]*676costs against the prevailing party does not offend the statutes. The challenged regulation is within the ambit of the Act____” [2]

Tabler v. Medical Mut. Liab. Ins. Soc’y, 301 Md. 189, 200, 482 A.2d 873, 879 (1984).

Thus, in arbitrations under the Act, we do not deal with a system in which costs follow the result. Under the legislatively created system the parties are ultimately to pay the costs of the arbitration. In practice, the HCAO initially pays the arbitrators’ fees as an advance on behalf of the party or parties against whom the panel assesses costs in its discretion. There is no automatic connection between the obligation for arbitration costs, as determined by the panel, and the result on the merits, either in arbitration or in any subsequent malpractice action in court.

Here the State contends that the apportionment of one-half of the arbitration costs against Dr. Gettes is an award against him which he has never sought to set aside. Dr. Gettes contends that the award of costs cannot be enforced because it has never been confirmed, and, indeed, that it was rejected by the claimant. Independently of that argument Dr. Gettes also contends that the judgment of the court in his favor for costs, following the jury verdict, operated to reallocate for payment the arbitration costs so that it is the claimant who is now obligated to pay the portion of the arbitration costs previously assessed by the panel against the health care provider.

The fundamental conceptual issue presented by these contentions is the number of awards involved, or of proceedings required, for the purpose of subsequently attempting to overturn in some way the decision of the panel, both as to the merits and as to costs, or a part of the costs. As we shall see, resolution of the issue implicates justiciability [677]*677principles and the nature and scope of the judicial action. In other words, the procedure has to be governed by who is complaining, about what, to whom, and with what power to do something about it.

The State essentially views the panel’s decision as at least two awards for purposes of the present problem, one deciding the merits and one or two additional awards deciding costs. Dr. Gettes essentially views the panel’s decision as one, indivisible award. Thus, under Dr. Gettes’s analysis, the notice of rejection filed by the claimant operated to reject the award of costs against him. Thereafter that conceptually indivisible award either remained “undetermined” or was brought to the court that heard the malpractice case where the judgment for circuit court costs also acted to adjudicate the arbitration costs in his favor.

Dr.

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Bluebook (online)
584 A.2d 689, 321 Md. 671, 1991 Md. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-maryland-central-collection-unit-v-gettes-md-1991.