Las Palmas Med. Ctr. v. Moore (Summary)

PHYSICIAN RECRUITMENT/ARBITRATION

Las Palmas Med. Ctr. v. Moore, No. 08-09-00226-CV (Tex. App. Oct. 6, 2010)

The Court of Appeals of Texas reversed the decision of the trial court and rendered judgment confirming an arbitration award between two physicians and a medical center.

Two urologists signed a recruitment agreement with a medical center which required them to arbitrate any disputes arising out of or relating to the recruitment agreement. The physicians did not provide accounting information as required by the recruitment agreement and the medical center initiated an arbitration proceeding. The physicians challenged the arbitration award, arguing that the arbitrator was biased and that the award was obtained by fraud because the arbitrator failed to disclose her relationship with the medical center’s attorneys.

The court found no evidence that the arbitrator was partial to the medical center, nor was there evidence that the arbitrator acted immorally, illegally, or in bad faith. Additionally, the arbitrator had disclosed her relationship with the medical center’s attorneys. The physicians did not ask additional questions about the relationship before accepting her and they also did not object to her appointment when they were given the opportunity to do so.