Filed: Jun. 12, 2017
Latest Update: Jun. 12, 2017
Summary: ORDER WITH REASONS JERRY A. BROWN , Bankruptcy Judge . This matter came before the Court on the Motion to Dismiss or Alternatively Stay Proceedings filed by eClinicalWorks, LLC ("ECW") (P-22) and the Oppositions filed by Cardiovascular Care Group, LLC ("CCG"), Louisiana Medical Center and Heart Hospital, LLC ("Hospital"), LMCHH PCP, LLC ("LMCHH"), Dr. Alan Weems, M.D. ("Weems"), and Neurological Surgery of Covington, PLLC ("NSC"). On August 3, 2016, Cardiovascular Care Group, LLC ("CCG")
Summary: ORDER WITH REASONS JERRY A. BROWN , Bankruptcy Judge . This matter came before the Court on the Motion to Dismiss or Alternatively Stay Proceedings filed by eClinicalWorks, LLC ("ECW") (P-22) and the Oppositions filed by Cardiovascular Care Group, LLC ("CCG"), Louisiana Medical Center and Heart Hospital, LLC ("Hospital"), LMCHH PCP, LLC ("LMCHH"), Dr. Alan Weems, M.D. ("Weems"), and Neurological Surgery of Covington, PLLC ("NSC"). On August 3, 2016, Cardiovascular Care Group, LLC ("CCG"),..
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ORDER WITH REASONS
JERRY A. BROWN, Bankruptcy Judge.
This matter came before the Court on the Motion to Dismiss or Alternatively Stay Proceedings filed by eClinicalWorks, LLC ("ECW") (P-22) and the Oppositions filed by Cardiovascular Care Group, LLC ("CCG"), Louisiana Medical Center and Heart Hospital, LLC ("Hospital"), LMCHH PCP, LLC ("LMCHH"), Dr. Alan Weems, M.D. ("Weems"), and Neurological Surgery of Covington, PLLC ("NSC").
On August 3, 2016, Cardiovascular Care Group, LLC ("CCG"), Louisiana Medical Center and Heart Hospital, LLC ("Hospital"), and LMCHH PCP, LLC ("LMCHH") filed suit against Dr. Alan Weems, M.D. ("Weems") and Neurological Surgery of Covington, PLLC ("NSC") in the 22nd Judicial District Court, St. Tammany Parish, State of Louisiana entitled "Cardiovascular Care Group, Inc., et al. v. eClinicalWorks, LLC, et al., Case No. 2016-13222" (hereinafter referred to as "CCG State Court Suit").
On February 24, 2017, and before ECW's Exception of Prematurity or Alternate Motion to Stay was ruled upon, the CCG State Court Suit was removed to the District Court pursuant to 28 U.S.C. §1425(a) and §1334(b), and then on April 28, 2017, the District Court transferred the case to Bankruptcy Court because the case relates to the Chapter 11 Bankruptcy filings by Hospital and LMCHH.
The CCG State Court Suit involves billing and collections payments totaling approximately $1,000,000 that were alleged to be incorrectly deposited into an account set up for a medical practice owned and operated by Weems. ECW contends this action should be dismissed or alternatively stayed as subject to arbitration under an arbitration clause included in the Master Services Agreement1("Agreement") between LMCHH and Weems. CCG, NSC, Weems, LMCHH, and Hospital contend that ECW is not a party to the Agreement and thus, has no rights to compel arbitration.
The Court must first consider the terms of the Agreement. "Who is actually bound by an arbitration agreement is a function of the intent of the parties, as expressed in the terms of the agreement."2 It is apparent that the four corners of the agreement do not grant authority to ECW to compel arbitration of this dispute. ECW did not sign the Agreement, nor was it defined as a party in the agreement. "To be enforceable, an arbitration clause must be in writing and signed by the party invoking it . . . [Further, a] [n]onsignatory may invoke an arbitration agreement only when the party ordered to arbitrate has agreed to arbitrate disputes arising out of the contract and is suing in reliance upon that contract."3
LMCHH and Hospital's claims against ECW do not arise from the Agreement. CCG relies on a secondary agreement between those parties to assert contractual claims against ECW, but there is no arbitration clause in that second agreement. Additionally, ECW is expressly not a third-party beneficiary of the Agreement or any of its schedules.4 Accordingly,
IT IS ORDERED that the Motion to Dismiss or Alternatively Stay Proceedings is DENIED.