Murtagh v. Emory University
321 Ga. App. 411
Ga. Ct. App.2013Background
- Series of lawsuits between James J. Murtagh, M.D. and Emory University dating to 1999; initial settlement in 2001 included nondisparagement, confidentiality, and arbitration clauses under FAA; 2003 arbitration demand followed by 2004 suit by Murtagh in state court and Emory counterclaims for settlement breaches; 2005–2007 contempt proceedings found Murtagh in contempt and awarded sanctions and fees to Emory; 2008–2009 arbitrator awards dismissed Murtagh’s claims, awarded Emory fees, then offset against settlement; 2012 trial court confirmed arbitrator’s award, issued permanent injunction, awarded Emory over $1.1 million in fees/damages, and then this appeal by Murtagh
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of vacatur motion under FAA | Murtagh: timely vacatur required | Emory: FAA deadline applies | Vacatur motion untimely; not timely under 9 USC § 12 |
| Arbitrator exceeded powers under FAA | Murtagh: arbitrator exceeded authority | Emory: dismissal with prejudice within powers | Arbitrator did not exceed powers; affirm award |
| Contempt sanctions amount and characterization | Murtagh: fines improper under law | Emory: sanctions warranted | Criminal contempt fines for three acts improper beyond $1,500 total; remand for $1,500 sanction; prior order valid otherwise |
| Attorney fees under OCGA 13-6-11 | Murtagh: no authority for fees beyond contempt | Emory: fees authorized for bad-faith breach and counterclaims | Affirm award of attorney fees under OCGA 13-6-11; overall fee award affirmed |
| Scope of final judgment and FAA/GA arbitration framework | Murtagh: FAA controls, Georgia law limited | Emory: FAA governs arbitration; Georgia law supports sanctions/fees | FAA governs arbitration; judgment affirmed subject to $1,500 contempt sanction; remand for final judgment |
Key Cases Cited
- IMC-Agrico Co. v. Intl. Chemical Workers Council, 171 F.3d 1322 (11th Cir. 1999) (arbitrator may dismiss claims for party misconduct within powers)
- Grantham v. Universal Tax Systems, 217 Ga. App. 676 (Ga. App. 1995) (civil/criminal contempt distinction; statutory penalties cap at $500/day)
- Carey Canada, Inc. v. Hinely, 257 Ga. 150, 356 S.E.2d 202 (Ga. 1987) (distinguishes civil vs. criminal contempt; sanctions authority limits)
- Edwards-Warren Tire Co. v. Coble, 102 Ga. App. 106, 115 S.E.2d 852 (Ga. App. 1960) (bad-faith breach may support attorney-fee recovery under OCGA 13-6-11)
- DeKalb County v. Bolick, 249 Ga. 843, 843-845, 295 S.E.2d 92 (Ga. 1982) (attorney fees not authorized in criminal contempt; exceptions under OCGA 13-6-11)