Opinion
NO. CIV. S-12-0751 LKK/EFB
07-17-2012
OTASHE GOLDEN, M.D.; THE CALIFORNIA PRIMARY CARE MEDICAL GROUP, INC. and THE CALIFORNIA HOSPITALIST PHYSICIANS, INC., Plaintiffs, v. DAMERON HOSPITAL ASSOCIATION, a California Non-Profit Association; NICHOLAS ARISMENDI, an individual; DIEGO FERRO, M.D. and DOES 1-10, inclusive, Defendants.
ORDER
Defendants seek an order from this court sending all of plaintiffs' claims to binding arbitration. However, the court requires further briefing on the matter. Accordingly, defendants as the moving parties, shall, no later than fourteen (14) days from the date of this order, file a brief and any supporting papers, with the brief not to exceed ten (10) pages in length, regarding the following:
1. It appears that in order for this court to exercise its authority under the Federal Arbitration Act, the Agreements containing the arbitration clauses at issue must evidence "a transaction involving [interstate] commerce." 9 U.S.C. § 2. Defendants do not assert that any of these Agreements involve interstate commerce. The Supreme Court however, has recently emphasized the importance of considering the Commerce Clause in determining whether a federal grant of authority may be exercised. See Nat'l Ass'n of Independent Business v. Sebelius, 567 U.S. ___, 132 S. Ct. 2566 (June 28, 2012). Accordingly, defendants, in their brief and any accompanying declarations and documentation, shall make a showing sufficient for the court to determine whether the Agreements at issue evidence a transaction involving interstate commerce.
The court is aware that plaintiffs have asserted that defendant Dameron is a recipient of federal funds. If defendants intend to rely upon this allegation, they must explain why it is sufficient to establish interstate commerce.
2. Defendants seek an order of this court based upon the arbitration clause contained in the Hospitalist Agreement. That is an Agreement which is alleged (by plaintiffs) to be a contract between California Hospitalist Physicians, Inc. and Dameron Hospital. However, defendants have not submitted a final, signed Hospitalist Agreement, nor even a stipulation as to its existence and contents. If defendants wish to compel arbitration pursuant to this Agreement, they must provide a copy of it to the court, accompanied by an authenticating declaration, or explain why they have not done so.
The court is aware that plaintiffs have attached an Exhibit A, and that they allege that Exhibit A is the Agreement. However, Exhibit A is labeled "DRAFT 2," is unsigned, and purports to be between Dameron Hospitalist Medical Group and Dameron Hospital Association.
3. Defendants seek an order of this court based upon the arbitration clause contained in the Recruitment Agreement. However, defendants have not submitted a final, signed Recruitment Agreement to the court, nor even a stipulation as to its existence and contents. If defendants wish to compel arbitration pursuant to this Agreement, they must provide a final, signed copy of it to the court, accompanied by an authenticating declaration, or explain why they have not done so.
The Recruitment Agreement submitted by defendants is not signed by all the parties to it.
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3. Plaintiffs shall have fourteen (14) days from the date defendants' brief is filed, to file their response, if any. The legal portion of the response shall not exceed ten (10) pages in length.
4. There shall be no further briefing without further order of this court.
IT IS SO ORDERED.
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LAWRENCE K. KARLTON
SENIOR JUDGE
UNITED STATES DISTRICT COURT