Louisiana Health Service Indemnity Co. v. Gambro a B
2010 U.S. Dist. LEXIS 135579
| W.D. La. | 2010Background
- BCBSLA filed suit Aug. 8, 2005 to recover overpayments to Gambro for alleged unlawful conduct.
- Gambro moved to stay and compel arbitration under their contract; court granted arbitration and administratively terminated the action with a 30-day reopen option.
- BCBSLA timely commenced class arbitration under AAA rules on Oct. 26, 2006.
- Arbitration panel issued Clause Construction Award on Oct. 5, 2007 finding the agreement permits class arbitration.
- Gambro moved for reconsideration after Stolt-Nielsen was decided; panel denied, citing functus officio and contract/AAA rules.
- Gambro moved to reopen to vacate the awards or to clarify the March 2006 order; court denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Rule 12 FAA deadline bars vacatur. | Gambro argues deadline not fatal due to ongoing arbitration. | BCBSLA argues deadline controls; failure to timely object waives review. | Section 12 deadline bars vacatur; motion untimely. |
| Whether Stolt-Nielsen invalidates the Clause Construction Award. | Gambro contends panel erred by allowing class arbitration where clause silent. | Panel followed FAA, Louisiana law, and AAA rules; distinguishable from Stolt-Nielsen. | Stolt-Nielsen distinguished; award upheld. |
| Whether functus officio prevents rehearing of the Clause Construction Award. | Gambro argues reconsideration permissible. | Panel properly applied functus officio for partial final award. | functus officio barred reconsideration. |
| Whether Gambro waived review and/or the award can be vacated for other reasons. | Gambro forfeited review and had no right to vacate post-stay. | Waiver and timeliness bar relief; PLC final award upheld. | Waiver and timeliness bar vacatur; award stands. |
Key Cases Cited
- Stolt-Nielsen S.A. v. AnimalFeeds Int'l Corp., 130 S. Ct. 1758 (2010) (silent arbitration clause; panel exceeded powers by imposing class arbitration)
- Hall Street Assocs., L.L.C. v. Mattel, Inc., 552 U.S. 576 (2008) (FAA §10 grounds are exclusive for vacatur; no manifest disregard ground remaining)
- Citigroup Global Markets, Inc. v. Bacon, 562 F.3d 349 (5th Cir.2009) (manifest disregard not independent ground after Hall Street)
- Cigna Ins. Co. v. Huddleston, 986 F.2d 1418 (5th Cir.1993) (Section 12 deadline governs; untimely vacatur defenses barred)