Virk v. Maple-Gate Anesthesiologists, P.C.

80 F. Supp. 3d 469, 2015 U.S. Dist. LEXIS 7061, 2015 WL 268873
District Court, W.D. New York·Decided January 21, 2015·No. No. 14-CV-381S·Published·Cited by 2 cases

Opinion

DECISION AND ORDER

WILLIAM M. SKRETNY, Chief Judge.

I. INTRODUCTION

Plaintiff Amarjit S. Virk, M.D., commenced this action in February 2014 in New York State Supreme Court, Erie County, alleging state law breach of contract and discrimination claims, as well as employment discrimination under federal law. Defendants removed the aqtion to this Court shortly after being served with the summons and complaint in May 2014. Presently before this Court is Defendants’ motion for, an order pursuant to the Federal Arbitration Act, 9 U.S.C. § 1 et seq. and Rule 12(b) of the Federal Rules of Civil Procedure to compel arbitration in this matter. For the reasons that follow, Defendants’ motion is granted.

II. BACKGROUND

On May 8, 2000, Plaintiff entered into an employment agreement with Defendant Maple-Gate Anesthesiologists, P.C. (“MGAPC”). (Am. Compl. ¶¶ 23-24, Docket No. 7 1; Chen Decl. ¶ 11 Ex. A, Docket No. 5-1.) Pursuant to its terms, the 2000 Employment Agreement was to remain effective until termination in accordance with Article 9, which provides:

This Agreement shall be terminated upon the occurrence of any of the following events:
(a) Disqualification of the Employee, whether temporarily or permanently, by the appropriate licensing authority, to practice his profession within the State of New York; or revocation, suspension or modification of medical privileges limiting Employee’s ability to provide services pursuant to this Contract. In such event, Employee shall receive only such compensation as accrued, and nothing further[;]
[472] (b) The death of the Employee;
(c) The permanent disability of the Employee that renders him unable to perform his duties;
(d) Whenever the Employer, acting upon a majority vote of its Board of Directors, and the Employee shall mutually agree to terminate this Agreement in writing[;]
(e) Upon sixty (60) days prior written notice of termination to the other by either the Employer, or the Employee.

(Chen Decl. Ex. A.) The employment agreement could also only be amended in a writing signed by both parties. (Id. (Article 12).)

Article 16 contains an arbitration clause: Any controversies or claims arising out of or relating to this Agreement or the breach thereof, with the exception of the Non-Competition During Employment Clause contained in Paragraph 4 and the Covenant Not to Compete contained in Paragraph 9 and the enforcement of those provisions by Court Order, Judgment, Temporary Restraining Order or Injunction, shall be settled by arbitration in accordance with the then current rules of the American Arbitration Association, and judgment upon the award rendered may be entered in a Court having jurisdiction thereof. Any and all arbitration proceedings must be commenced with[in] six (6) months of the date of any alleged controversy or claim and if not so commenced shall be permanently barred.

(Id.) Rule 6 of the American Arbitration Association’s Employment Arbitration Rules and Mediation Procedures provides as relevant:

a. The arbitrator shall have the power to rule on his or her own jurisdiction, including any objections with respect to the existence, scope or validity of the arbitration agreement.
b. The arbitrator shall have the power to determine the existence or validity of a contract of which an arbitration clause forms a part. Such an arbitration clause shall be treated as an agreement independent of the other terms of the contract. A decision by the arbitrator that the contract is null and void shall not for that reason alone render invalid the arbitration clause.

(Weissflach Decl. Ex. B, Docket No. 5.-2.)

Finally, as relevant here, the 2000 Employment Agreement also provided for Plaintiffs attainment of shareholder status in MGAPC after one year:

Upon the faithful performance and completion of the terms of this Agreement the Employee shall be entitled after one (1) year of full-time employment to membership in the corporation of the Employer together with all the rights and privileges attendant to a full shareholder and member of the Board of Directors and an employment contract under the same conditions and terms as then existing for other equally qualified full-time physician employees of the Employer. Provided, however, that should this Agreement be terminated pursuant to Paragraph 9 herein for whatever reason prior to the completion of one year of full-time employment, the Employee shall not be entitled to any rights or benefits under this Paragraph ...

(Id. (Article 18).)

Plaintiff successfully completed his first year of employment and became a member/shareholder/director of MGAPC in 2001. (Pi’s Aff. ¶¶ 13, 15, Docket No. 8.) MGAPC terminated the parties’ relationship in 2013. (Am. Compl. ¶¶ 27-28.) The notification letter, dated May 17, 2013, states as relevant:

[473] Today Maple-Gate Anesthesiologists, P.C. received a letter from Kaleida Health stating that effective May 15, 2013, Kaleida suspended your clinical privileges.
As you know, your contract with Maple-Gate Anesthesiologists, P.C., Section 9(a) states: “This Agreement shall be terminated upon the occurrence of any of the following events: (a) ... revocation, suspension, or modification of medical privileges limiting Employee’s ability to provide services pursuant to this cont[r]aet.”
Because you are unable to serve as a physician in Kaleida Health’s facilities, your contract with Maple-Gate Anesthe-siolgists, P.C. was terminated effective May 15, 2013.

(Chen Aff. Ex. B, Docket No. 10-3.)

Plaintiff obtained an order from New York State Supreme Court, Erie County, in February 2014 annulling Kaleida Health’s “precautionary suspension” of Plaintiffs privileges and directing Kaleida Health to expunge any reference to that suspension from Plaintiffs personnel file. (Pl’s Aff. ¶ 26 Ex. 3, Docket No. 8.) Although Plaintiff informed MGAPC that the suspension had been expunged, he was never reinstated. (Id. ¶ 29.)

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Virk v. Maple-Gate Anesthesiologists, P.C., 80 F. Supp. 3d 469, 2015 U.S. Dist. LEXIS 7061, 2015 WL 268873 (W.D.N.Y. 2015).

80 F. Supp. 3d 469 (Virk v. Maple-Gate Anesthesiologists, P.C.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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