State Farm Mut. Auto. Ins. Co. v. Ahmed
Decision Date | 07 December 2004 |
Docket Number | No. A04-310.,A04-310. |
Citation | 689 N.W.2d 306 |
Parties | STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Respondent, v. Naima M. AHMED, Appellant. |
Court | Minnesota Court of Appeals |
Kay Nord Hunt, Lommen, Nelson, Cole & Stageberg, P.A., Minneapolis, MN; and Patrick M. Conlin, Brett W. Olander & Associates, St. Paul, MN, for respondent.
Rhett A. McSweeney, McSweeney & Fay, P.L.L.P., Minneapolis, MN, for appellant.
Considered and decided by HUDSON, Presiding Judge; KALITOWSKI, Judge; and KLAPHAKE, Judge.
Appellant challenges the district court's decision (1) quashing an arbitrator's order concerning appellant's attendance at a future independent medical examination; and (2) dismissing appellant's Minnesota no-fault claim for unreimbursed medical expenses. Because we conclude that the arbitrator's order did not constitute an "award" subject to vacation by the district court under Minn.Stat. § 572.19, subd. 1(3) (2002), the district court lacked jurisdiction to consider the matter and we vacate the judgment accordingly.
Appellant Naima M. Ahmed was injured in an automobile accident on May 24, 2002. Following the accident, appellant received medical and chiropractic treatment for her injuries. Respondent State Farm Insurance Company scheduled two independent medical examinations (IMEs) to determine whether appellant's injuries were related to the car accident. Appellant failed to attend both IMEs, and respondent suspended appellant's no-fault benefits. Appellant then petitioned for arbitration, seeking reimbursement under her no-fault insurance policy for the medical care she received.
The arbitrator set a hearing date, and respondent scheduled an IME for appellant, pursuant to Minn.Stat. § 65B.56, subd. 1 (2002). Appellant failed to attend the IME and respondent requested that appellant's claim be dismissed for failure to attend an IME. In response, appellant's attorney notified the arbitrator that appellant was unable to attend the IME because she was in London for a family emergency, and that she would return in two weeks and attend an IME. The arbitrator continued the hearing to August 5, 2003, and ordered appellant to attend the next scheduled IME.
Respondent scheduled a second IME, in conjunction with the arbitration proceedings. Approximately one week before the second IME appointment, appellant's attorney notified respondent that appellant would be unable to attend because she had not yet returned to the United States. Respondent rescheduled the IME, and simultaneously requested that the arbitrator dismiss appellant's claim based on her failure to comply with the arbitrator's order requiring her to submit to the next scheduled IME. Appellant failed to attend the rescheduled IME, and respondent renewed its request that the arbitrator dismiss appellant's claim. At the August 5, 2003, hearing, the arbitrator did not dismiss appellant's claim, but instead took evidence concerning appellant's failure to attend any of the scheduled IMEs. Following the hearing, the arbitrator ordered appellant to attend the next scheduled IME and warned that failure to attend the IME would result in an award of costs against appellant. The arbitrator also continued the hearing for a second time, until October 14, 2003.
Respondent then sought relief in the district court from the arbitrator's August 5, 2003 order, alleging that the arbitrator exceeded his powers under Minn.Stat. § 572.19, subd. 1(3) (2002). The district court vacated the arbitrator's order, dismissed appellant's claim for unreimbursed medical expenses, and awarded respondent costs. This appeal follows.
Is an arbitrator's interlocutory order concerning compliance with independent medical examinations subject to district court review under Minn.Stat. § 572.19, subd. 1(3) (2002), prior to the completion of arbitration proceedings and the issuance of an award?
Appellant argues that in a matter involving the arbitration of no-fault insurance benefits, the district court lacks jurisdiction to review an arbitrator's "discovery ruling" because it does not constitute an "award" under Minn.Stat. § 572.19 (2002). Respondent contends that the arbitrator's discovery order constitutes an "award" under Minn. R. No-Fault Arb. 32, because the order provided appellant with a clear remedy — that she be permitted to attend the next IME and that the arbitration hearing be continued. We find no merit in respondent's position.
This court reviews de novo the existence of subject-matter jurisdiction. Olson v. Am. Family Mut. Ins. Co., 636 N.W.2d 598, 601 (Minn.App.2001). Upon application by a party, the district court shall vacate an award when the arbitrator exceeds his power. Minn.Stat. § 572.19, subd. 1(3); see Minn. R. No-Fault Arb. 38 ( ). Minn.Stat. § 65B.525, subd. 1 (2002), provides that the American Arbitration Association has jurisdiction to arbitrate no-fault disputes when the claim at the commencement of arbitration is $10,000 or less. Minn.Stat. § 65B.525, subd. 2, also sets out rules that govern such arbitrations. One specific rule, Minn. R. No-Fault Arb. 32, provides that an award includes "any remedy or relief that the arbitrator deems just and equitable consistent with the Minnesota No-Fault Act." Here, it is undisputed that the arbitrator's order requiring appellant to submit to the next scheduled IME was an interlocutory order involving discovery matters. See Minn.Stat. § 65B.56, subd. 1 (2002) ( ); see also Minn. R. No-Fault Arb. 12 ( ). Therefore, respondent cannot obtain judicial review of the arbitrator's discovery order because it is not an "award" under Minn.Stat. § 572.19.
Likewise, we reject respondent's argument that the arbitrator's discovery order constitutes an award based on Minn. R. No-Fault Arb. 32, entitled "scope of award." That rule provides Minn. R. No-Fault Arb. 32. While that rule grants broad authority to arbitrators to grant any remedy or relief they deem necessary in the award, this does not mean that an interlocutory discovery order constitutes an award. Rather, the rule empowers arbitrators with great leeway in fashioning fair and equitable awards.
At oral argument respondent's counsel suggested that if an "award" must be final to fall within Minn. R. No-Fault Arb. 32, then the legislature...
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