Translate
Text Highlighter

Bookmark

PDF

Share

Report a problem
AMICUS AI
Citation Codes
Equivalent Citations
citation codes
Docket Number
Attorney(S)
Judges
Are you a practicing lawyer?
Enhance your digital presence and reach by creating a Casemine profile.
Upload pleading to use the new AI search
Cites
Cited by
Citation Codes
Equivalent Citations
citation codes
Docket Number
Attorney(S)
Judges
Smart Summary

Case Summary: Smith v. Ruberg, Docket No. 97866 (Mich. Ct. App. Mar. 7, 1988)

Factual and Procedural Background

On April 5, 1982, plaintiff Clinton Smith was admitted to Lakeview General Hospital for a cervical laminectomy to be performed the next day by Dr. Raymond Ruberg. Upon admission Smith signed an arbitration agreement with the hospital; Dr. Ruberg did not sign such an agreement and apparently executed no separate arbitration agreement. After the surgery Smith developed cervical radiculitis, which he claimed caused permanent partial disability.

On March 30, 1984, Smith and his wife filed a medical malpractice complaint naming as defendants the estate of Dr. Ruberg, Raymond L. Ruberg, D.O., P.C., and Lakeview General Hospital. The complaint alleged, among other things, that Dr. Ruberg was an employee of the hospital.

On November 20, 1986, the hospital moved for summary disposition or, alternatively, to compel arbitration. Other defendants filed a similar motion several days later. At a December 1, 1986 hearing, plaintiffs stipulated to dismissal of the hospital with prejudice. At the conclusion of the hearing the circuit court granted the remaining defendants' motion to compel arbitration, reasoning that those defendants could compel arbitration by virtue of the binding arbitration agreement between Smith and the hospital. The circuit court later entered orders (1) dismissing the claim against the hospital and striking allegations that Dr. Ruberg was a hospital employee, and (2) referring plaintiffs' claims against the remaining defendants to arbitration. Plaintiffs appealed the second order as of right.

Legal Issues Presented

  1. Whether a defendant in a medical malpractice action who has no standing to compel arbitration in his own right may nevertheless obtain arbitration by virtue of an arbitration agreement between the plaintiff and another defendant who is no longer a party to the proceedings (i.e., whether MCL 600.5046(4); MSA 27A.5046(4) permits such joinder/compelled arbitration absent a request by a party).

Arguments of the Parties

Plaintiffs' Arguments

  • Plaintiffs appealed the circuit court's order referring claims against the estate and corporate defendant to arbitration, challenging the notion that those defendants could compel arbitration based solely on the plaintiff's arbitration agreement with the hospital.
  • The central contention on appeal was that defendants who are not parties to the arbitration agreement and who were not invited to join arbitration lack the statutory right to compel arbitration under MCL 600.5046(4); MSA 27A.5046(4).

Defendants' Arguments

  • The hospital moved to compel arbitration; the other defendants filed similar motions, asserting they could compel arbitration by virtue of the binding arbitration agreement between Smith and the hospital.
  • As noted by the court, defendants did not dispute there was no arbitration agreement between Smith and Dr. Ruberg, and they did not claim an employer-employee relationship with the hospital that would entitle them to take advantage of the hospital's agreement.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Hiltz v Phil's Quality Market, 417 Mich. 335, 343; 337 N.W.2d 237 (1983) Principle that when statutory language is clear and unambiguous, courts must enforce the statute as written and judicial interpretation to vary the plain meaning is precluded. The court relied on this principle to treat MCL 600.5046(4) as plain and unambiguous and therefore applied the statute's text literally.
Nerat v Swacker, 150 Mich. App. 61, 64; 388 N.W.2d 305 (1986), lv den 426 Mich. 857 (1986) Same statutory-construction principle that clear statutory language must be enforced as written. The court cited this authority to support construing the statute according to its plain language and concluding that no right to compel arbitration exists for a nonparty absent a request by a party.

Court's Reasoning and Analysis

The court framed the dispute as a question of statutory construction of MCL 600.5046(4); MSA 27A.5046(4), which the opinion quoted in full:

"A person who is not a party to the arbitration agreement may join in the arbitration at the request of any party with all the rights and obligations of the original parties. Each party to an arbitration under this chapter is deemed to be bound by the joinder of a new party."

The panel emphasized that this issue was one of first impression in Michigan and then applied basic rules of statutory construction. Citing authorities that require enforcement of clear and unambiguous statutes as written, the court concluded that the statute's phrase "at the request of any party" is plain: a nonparty may join arbitration only if requested by a party to the arbitration. The court reasoned that absent such a request the statute confers no right on a nonparty to compel arbitration.

Applying that construction to the facts, the court found that the remaining defendants were not invited to join arbitration and did not claim any independent right to arbitration. Because there was no request by a party to bring those defendants into arbitration, the circuit court erred in granting their motion to compel arbitration.

Holding and Implications

Holding: The Court of Appeals REVERSED the circuit court's order referring plaintiffs' claims against the estate of Dr. Ruberg and Raymond L. Ruberg, D.O., P.C., to arbitration, and remanded for further proceedings.

Implications: The practical effect of the decision is that defendants who are not parties to a plaintiff's arbitration agreement and who were not requested to join arbitration by a party cannot compel arbitration under MCL 600.5046(4); MSA 27A.5046(4). The case was returned to the trial court for further proceedings consistent with that ruling.

SMITH v RUBERG

R.M. MAHER, P.J.

Plaintiffs appeal as of right from the order of the Calhoun Circuit Court dismissing their claims against defendants estate of Dr. Raymond Ruberg, deceased, and Raymond L. Ruberg, D.O., P.C., and referring the matter to arbitration. We reverse.

On April 5, 1982, plaintiff Clinton Smith was admitted into Lakeview General Hospital to undergo a surgical procedure known as a cervical laminectomy. The operation was to be performed the next day by Dr. Ruberg. Upon his admission, Smith signed an arbitration agreement with the hospital. Dr. Ruberg was not a party to that agreement and apparently did not execute an agreement of his own. Following the surgery, Smith developed cervical radiculitis, which he claims rendered him permanently and partially disabled.

Cervical radiculitis is an inflammation of the roots of the cervical spinal nerves as they emerge from the spinal cord. 3 Schmidt, Attorneys' Dictionary of Medicine (1986), pp R-6 — R-7.

On March 30, 1984, Smith and his wife filed a medical malpractice claim against the estate of Dr. Ruberg (the doctor passed away approximately one and a half years after performing the operation), the doctor's private corporation, and Lakeview General Hospital. The complaint alleged, among other things, that Dr. Ruberg was an employee of the hospital.

On November 20, 1986, the hospital filed a motion for summary disposition or, in the alternative, to compel arbitration. The other defendants filed a similar motion several days later.

A hearing on the motions was held on December 1, 1986, during which the plaintiffs stipulated to dismissal of the hospital with prejudice. At the conclusion of the hearing, the circuit court granted the other defendants' motion for arbitration. The court reasoned that those defendants could compel arbitration by virtue of the binding agreement between Smith and the hospital. After a later hearing to resolve disputes over the contents of the proposed orders, the court entered orders (1) dismissing plaintiffs' claim against the hospital and striking allegations in the complaint that Dr. Ruberg was a hospital employee, and (2) referring plaintiffs' claim against the other defendants to arbitration. It is from the second order that plaintiffs claim their appeal as of right.

The sole issue presented on appeal is whether a defendant in a medical malpractice action who has no standing to compel arbitration in his own right may nevertheless obtain arbitration by virtue of an agreement between the plaintiff and another defendant where that defendant is no longer a party to the proceedings. Resolution of this issue, which is one of first impression in this state, is dependent upon the proper construction of MCL 600.5046(4); MSA 27A.5046(4). That statutory section provides:

A person who is not a party to the arbitration agreement may join in the arbitration at the request of any party with all the rights and obligations of the original parties. Each party to an arbitration under this chapter is deemed to be bound by the joinder of a new party.

Applying rules of simple statutory construction, we can only conclude that the circuit court erred in granting defendants' motion for arbitration.

When statutory language is clear and unambiguous, judicial interpretation to vary the plain meaning of the statute is precluded. The Legislature must have intended the meaning it plainly expressed, and the statute must be enforced as written. Hiltz v Phil's Quality Market, 417 Mich. 335, 343; 337 N.W.2d 237 (1983); Nerat v Swacker, 150 Mich. App. 61, 64; 388 N.W.2d 305 (1986), lv den 426 Mich. 857 (1986). Here, the language of MCL 600.5046(4); MSA 27A.5046(4) is clear and unambiguous: "A person who is not a party to an arbitration agreement may join in the arbitration at the request of any party. . . ." (Emphasis added.) Absent a request, the statute does not grant a nonparty any right to compel arbitration. Since defendants were not invited to join in arbitration, and do not claim any independent right to arbitration, the circuit court erred as a matter of law in granting their motion for arbitration.

Defendants do not dispute that there was no arbitration agreement between Smith and Dr. Ruberg. Nor do they claim that Dr. Ruberg was an employee of the hospital, thus entitling them to take advantage of that agreement. Even if made, such a claim would be meritless since the circuit court found — and they did not challenge — that the doctor and hospital did not have an employer-employee relationship.

Reversed and remanded for further proceedings.

Use AI to get other relevant cases.

Comments

SMITH v. RUBERG
(Mar 7, 1988)