# Opposition Brief — El Shahawy v. Harrison

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 1995
- **Citation:** 516 U.S. 821

## Text

@ GUL 17 19%
No. 94-2082 | CLERK
In The 4

Supreme Court of the United States
October Term, 1995
¢-

MAHFOUZ EL SHAHAWY, M.D. and MAHFOUZ
EL SHAHAWY, M.D., P.A.,

Petitioners,

V.

WILLIAM T. HARRISON, JR., et al.,
Respondents.

*

On Petition For A Writ Of Certiorari
To The United States Court Of Appeals
For The Eleventh Circuit

; ;
- i. @

RESPONDENTS’ BRIEF IN OPPOSITION
S

FRANK STRELEC, EsQuireE

(Counsel of Record)

Frazer F. Hitper, Esquire

WituraMs, Parker, HARRISON,
Drerz & GetzENn

Post Office Box 3258

Sarasota, Florida 34230-3258

(941) 366-4800

Attorneys for C. Ted French

July 17th, 1995

C. Lawrence Stace, Esquire
AKERMAN, SENTERFITT & Empson, P.A.
P.O. Box 3273
Tampa, Florida 33601-3273
Attorneys for Sarasota County Public Hospital Board,
David Bowman, H.J. Floyd, and C. Ted French

MuRNAGHAN, FERGUSON AND MAGUIRE
100 S. Tampa Street, Suite 2600
Tampa, Florida 33602 :
Co-Counsel for Sarasota County Public Hospital Board,
David Bowman, H.]. Floyd, and C. Ted French

Donatp W. STANLEY, Jr., EsQuire
SHort, SMITH, HENNEN, JENKINS,
STANLEY & GRAMAVOT, P.A.

One North Dale Mabry, Suite 800 ©
Tampa, Florida 32436
Co-Counsel for David Bowman —

G. Hunter Grpsons, Esquire
RicHARD GARLAND, EsQuiRE
Dickinson & Gripsons, P.A. .
P.O. Box 3979
Sarasota, Florida 34236
Attorneys for Physicians
Davip Mcreapir, Esquire
Lau, L..ng, Preper, CONLEY & McreApDIE
100 :. Ashley Drive, Suite 1700
Tampa, Florida 33601
Attorneys for Patrick DelMastro, M.D.

QUESTION PRESENTED

Whether the court of appeals erred in affirming the
district court’s ruling that the arbitration panel was not
guilty of misconduct by its refusal to admit in evidence a
proffered document.*

*The statement of Questions Presented For Review in the
petition is misleading by asserting baldly (a) that the arbitra-
tors “indisputably” were guilty of misconduct, and (b) that the
evidence in question was “pertinent and material” to the con-
troversy. This brief will show that the document in question
(the so-called “TECS Report”) was not pertinent or material
within the meaning of the arbitration statute and that the
arbitrators clearly were not guilty of misconduct.

TABLE OF CONTENTS

Guestion: Prague oo ci.6.o cs vices cis cwee svat seus i
Tee OF TO. 5 cc vce oc iene iieeans ii
Tae: OE ATO oo isin ee eae elise iii
| rr re rrr rere free ree 1
Summary of Argument .... 2.0.1. ..cccsceccsecsseces 3
ATBUMAORE 20 6 one cin chee rhacieeennsesceestesenensar 4
Reasons for Denying Writ ...............eeeeeeeees 4

I. Exclusion of the TECS Report was not Miscon-
duct on the Part of the Arbitrators.......... 4

A. Shahawy Expressly Waived any Objection
Based on Exclusion of Evidence ........ 6

B. Exclusion of the TECS Report was not
a 8. ghee renege re errr yey 6

II. This Case does not have Broad National Sig-
PATI soo ks wh. ee ak hae ce Es 8

III. Evaluation of this Petition is not Affected by
this Court’s Recent Opinion Concerning Stan-

Ge BE TAU . 5 5 iv kkk eke coke ec ee 9
( DUNE ee os hk roca Lk Oe ka a ees 11
Appendix

Order of the District Court Denying Shahawy’s
Petition to Vacate Arbitration Award.......... App. 1

Order of the Court of Appeals Affirming per
curiam the District Court Order Denying Shah-
awy’s Petition to Vacate Arbitration Award ...App. 8

iil

TABLE OF AUTHORITIES

Page
CASES
City of Columbia v. Omni Outdoor Advertising, Inc.,
499 U.S. 365, 111 S.Ct. 1344, 113 L.Ed. 2d 382
2 | RE Ee ree eb ep R Me re pry eee cc ats ke pee 7
Cordis Corp. v. C.R. Bard, Inc., 30 U.S.P.Q. 2d 1664,
1993 WL 7238443 (S.D. Tex. March 11, 1993)....... 8

First Options of Chicago, Inc. v. Kaplan, ____ U.S. __,
RO Sec, HE EE a kk ak ce ee 4,9, 10

Hoteles Condado Beach, La Concha & Convention
Center v. Union de Tronquistas Local 901, 763 F.2d

co BO PEPE rrr ratty My eyar en 7, 8
Hunt v. Mobil Oil Corp., 654 F.Supp. 1487 (S.D.N.Y.
EI J xis 66s Panay ne aed ire T A ees a es Oe a rss 7

Newark Stereotypers’ Union No. 18 v. Newark Morn-
ing Ledger Co., 397 F.2d 594 (3d Cir.) cert. denied,

393 U.S. 954, 89 S.Ct. 378, 21 L.Ed. 2d 365 (1958) ..... 7
Robbins v. Day, 954 F.2d 679 (11th Cir. 1992)......... 10
Shahawy v. Harrison, 778 F.2d 636 (11th Cir. 1985),

modified, 790 F.2d 75 (11th Cir. 1986)............... 2
Shahawy v. Harrison, 875 F.2d 1529 (11th Cir. 1989) ..... 2

United Paperworkers Int. Union, AFL-CIO v. Misco,
Inc., 484 U.S. 29, 108 S.Ct. 364, 98 L.Ed. 2d 286
CIB}. oss fa vSae OE TEAS ATE LS OER CUE DE COTES Mek os 6

No. 94-2082
o¢-—

In The

Supreme Court of the United States

October Term, 1995
*
MAHFOUZ EL SHAHAWY, M.D. and MAHFOUZ
EL SHAHAWY, M.D., P.A.,

Petitioners,

WILLIAM T. HARRISON, JR., et al.,

Respondents.

+

On Petition For A Writ Of Certiorari
To The United States Court Of Appeals
For The Eleventh Circuit

@--
RESPONDENTS’ BRIEF IN OPPOSITION
6

kespondents respectfully pray that the Court deny
the petition for a writ of certiorari to review the decision
of the United States Court of Appeals for the Eleventh
Circuit.

STATEMENT OF CASE

Petitioner, Mahfouz El Shahawy, was a member of
the medical staff of Sarasota Memorial Hospital, owned
and operated by defendant Sarasota County Public Hos-
pital Board. Petition, p.1.

In 1982 the Hospital Board denied Shahawy’s appli-
cation for privileges in the cardiac catheterization labora-
tary. Shahawy filed suit in the federal district court
alleging antitrust, civil rights and RICO claims, plus pen-
dent state law claims. The district court dismissed that
complaint. The Eleventh Circuit affirmed in part and
reversed as to the antitrust counts. Shahawy v. Harrison,
778 F.2d 636 (11th Cir. 1985), modified, 790 F.2d 75 (11th
Cir. 1986).

During pendency of that first appeal, the Hospital
Board declined to renew Shahawy’s medical staff mem-
bership. Following remand, the complaint was amended
to include that non-renewal, alleging antitrust, civil
rights, RICO and various state claims. In addition to the
Hospital Board, the amended complaint named 17 defen-
dants, including four administrators, two attorneys and
11 physicians. Again, the district court ruled in favor of
the defendants. Again, the Eleventh Circuit affirmed
except for the antitrust claims. Shahawy v. Harrison, 875
F.2d 1529 (11th Cir. 1989). The opinion noted that sub-
stantial competent evidence supported the decision to
terminate Shahawy’s medical staff membership, and that
Shahawy had received more than minimum procedural
due process. Id., 875 F.2d at 1533-1534. Thus, the two
Eleventh Circuit opinions do not support Shahawy’s
assertions of a vendetta.

In 1991, the parties agreed to mediation of the
remaining antitrust claims. R1-473,474. A settlement
resulted which included an agreement to “final, binding,
and enforceable” arbitration of the antitrust claims.
R1-483 Ex. A,B. The three member arbitration panel was
selected from a list of 22 retired federal judges. Id. After a

12-day evidentiary hearing, hundreds of documentary
exhibits and extensive post-hearing memoranda, the arbi-
tration panel ruled in favor of all defendants, stating
simply that “the plaintiffs have failed to prove any viola-
tion of federal or state antitrust laws.” R1-483 Ex. F.

The district court denied Shahawy’s petition to
vacate tle arbitration award.! The Eleventh Circuit
affirmed the district court’s order without opinion. 51
F.3d 1049 (11th Cir. 1995).

The order of the district court included a ruling that
exclusion of the TECS Report was not improper; the
parties had waived the right to challenge the award on
the ground of an erroneous evidentiary ruling, and the
exclusion was not “egregious error.” Order, App. pp. 3-5.
The petition challenges only the affirmance of exclusion
of the TECS Report. Petition, pp. 16-24.

¢

SUMMARY OF ARGUMENT

The sole ground for this petition is that the arbitra-
tors improperly excluded the TECS Report and that the
district court and the court of appeals improperly refused
to vacate the award for that reason.

That claim is untenable because Shahawy expressly
waived any right to challenge the award on the ground
that the arbitrators were guilty of misconduct by failing

The order of the district court is provided as an appendix
to this brief. It is cited as “Order, App. p. __.” The per curium
order of the court of appeals is also included as an appendix.

to consider pertinent or material evidence. Moreover, the
TECS Report was not “pertinent and material to the con-
troversy” within the meaning of the federal arbitration
statute, so that exclusion of this evidence could not be
misconduct.

This petition falls far outside the criteria for certiorari
petitions set forth in Rule 10. There is no conflict with
decisions of other courts. The per curiam opinion of the
court of appeals does not present any important federal
question. It does not establish any precedent. It simply
affects the medical staff of a single physician. The basic
issue is correctness or incorrectness of an evidentiary
ruling by arbitrators. There is no national significance
worthy of this Court’s attention.

Subsequent to the judgment of the Eleventh Circuit,
this Court announced First Options of Chicago, Inc. v.
Kaplan, <_ U.S. __, 115 S.Ct. 1920 (1995), concerning
courts of appeals’ standard of review of district court
decisions confirming arbitration awards. That opinion
does not affect this petition in view of the overwhelming
correctness of the opinion of the district court in this case.

+

ARGUMENT
REASONS FOR DENYING WRIT

I. Exclusion Of The TECS Report Was Not Misconduct
On The Part Of The Arbitrators.

The petition asks this Court to monitor the arbitra-
tors’ exercise of discretion within their authority. There

are no special circumstances which might call for grant-
ing this petition.

The sole claim in the petition is that “[t]he Arbitra-
tors knowingly and unlawfully excluded a singularly crit-
ical piece of evidence - the ‘TECS Report,’ ” contrary to 9
U.S.C.A. §10(a) (3). Petition, p- 16. The statute provides:

(a) In any of the following cases the United
States court in and for the district wherein the
award was made may make an order vacating
the award upon the application of any party to
the arbitration

* * +

(3) Where the arbitrators were guilty of
misconduct . . . in refusing to hear evidence
pertinent and material to the controversy;

The TECS Report (Training, Education and Consult-
ing Services Report) is described in the Order as a docu-
ment prepared by an outside consultant for the purpose
of assessing the current (1990) status of the Cardiovascu-
lar Program with special emphasis on the cardiac cathe-
terization laboratory. The report was compiled by a
behavioral psychologist, not a physician, based on his
interviews with certain cardiac catheterization laboratory
personnel. R1-482. Thus it was basically hearsay. The
petition contends that the TECS Report, prepared in 1990,
reveals the motivation of the Hospital Board in ruling
adversely to Shahawy years before in 1983. Petition, p. 22.

The district court upheld exclusion by the arbitrators
on the following two grounds.

A. Shahawy expressly waived any objection based
on exclusion of evidence.

In the Arbitration Agreement, Shahawy agreed:

In making decisions about discovery and infor-
mation exchange procedures, admission of evi-
dence, and all other matters, the Arbitrators
shall balance the need to consider the evidence
against the goal of this Agreement to ensure that
the dispute Plaintiffs and Defendant (sic) is
resolved in a timely and cost-effective way. So
long as the Arbitrators allow (1) the written oral
submissions provided for in this Agreement to
be made and (2) the time set out in this Agree-
ment for preparation and hearing, no Party shall
challenge the Award on the ground that the
arbitrators were guilty of misconduct by failing
to consider pertinent or material evidence or by
failing to postpone the hearing.

R1-483 Ex. B; Order, p. App. 3.

The parties are free to set such ground rules. United
Paperworkers Int. Union, AFL-CIO v. Misco, Inc., 484 U.S.
29, 39, 108 S.Ct. 364, 9 L.Ed. 2d 286 (1987). Shahawy did
not raise any question as to the conditions of the waiver.

B. Exclusion Of The TECS Report Was Not
“Egregious Error.”

Federal courts applying section 10(a) (3) generally do
not focus on literal tests of “pertinent” or “material.”2

* The TECS Report was conceivably neither “pertinent” nor
“material” under dictionary definitions of those terms. The

|
|

Instead, they customarily look at whether exclusion of
“relevant” evidence “so affects the rights of a party that it
may be said that he was deprived of a fair hearing.”
Hoteles Condado Beach, La Concha & Convention Center v.
Union de Tronquistas Local 901, 763 F.2d 34, 40 (1st Cir.
1985), quoting Newark Stereotypers’ Union No. 18 v. Newark
Morning Ledger Co., 397 F.2d 594, 599 (3d Cir.), cert. denied,
393 U.S. 954, 89 S.Ct. 378, 21 L.Ed. 2d 365 (1968). Here the
district court followed that trend, citing Hunt v. Mobil Oil
Corp., 654 F.Supp. 1487, 1512 (S.D.N.Y. 1987), for the
principle that vacatur is justified only by finding a “most
egregious error” on the part of the arbitrator. Order, App.
p. 4. In this connection, the district court held:

The Court finds that the arbitrators’ refusal to
receive the TECS Report was not an “egregious
error which resulted in adversely affecting the
rights” of the plaintiffs. The TECS Report was
compiled in 1990, years after this case was filed.
There is no indication that the scenarios
depicted in the TECS Report took place during
the period of time relevant to this case. Assum-
ing arguendo that the TECS Report does accu-
rately depict the cardiovascular program at the
times relevant to this case, the plaintiffs had
ample opportunity to offer proof of their theory
by providing direct evidence. The plaintiffs fail-
ure to do so does not create the exceptional
circumstances contemplated in the case law

panel arguably was required to hold there was no antitrust
violation by virtue of the doctrine of state action immunity
delineated in City of Columbia v. Omni Outdoor Advertising,
Inc., 499 U.S. 365, 111 S.Ct. 1344, 113 L.Ed 2d 382 (1991). In that
circumstance, the Report would have been completely irrele-

vant.

vacating arbitrator awards. In sum, the Court
finds that the plaintiffs have failed to meet their
burden to establish that the TECS Report was
improperly excluded.

Order, App. p. 5. The court of appeals did not need to
write an opinion to agree with that sound reasoning.

Moreover, the district court’s order shows that the
arbitration panel heard extensive argument as to recep-
tion of the TECS Report. Order, App. p. 4.n.4. This further
demonstrates that Shahawy received the “fair hearing”
contemplated by Hoteles Condado Beach. See Cordis Corp. v.
C.R. Bard, Inc., 1993 WL 723844 3 (S.D. Tex. March 11,
1993) (“Because the arbitrator is judge of the admissibility
and relevance of evidence submitted in an arbitration
proceeding, and because the arbitrator in this proceeding
entertained argument on the relevancy of evidence
derived from test performed on used balloons before
deciding to exclude it as irrelevant, the arbitrator’s deci-
sion to exclude this evidence did not prevent Cordis from
receiving a fundamentally fair hearing.”)

II. This Case Does Not Have Broad National Signifi-
cance.

Despite agreeing to binding arbitration, Shahawy is
unhappy with the result. Two federal courts have upheld
that result. Now Shahawy relies on a single evidentiary
ruling by the arbitrators to ask this Court to rexamine the
enormous arbitration record.

The weakness of the petition is emphasized by the
fact that all parties to the arbitration expressly waived
any right to challenge the award on the ground that the

arbitrators had improperly excluded pertinent or material
evidence.

This case does not even approach the general criteria
set forth in Rule 10 of the Supreme Court Rules. There is
no conflict with decisions of other courts interpreting 9
U.S.C.A. §10(a) (3). The materiality of the TECS Report -
discussing events occurring years after the last amend-
ment of the complaint - is not such an important federal
question as to deserve the attention of this Court.

This case involves the qualifications of one physician
to be a member of the medical staff of a major hospital. It
is a “peer review” controversy depending solely on its
own particular facts. It will not establish any precedent,
not even for subsequent peer review proceedings at this
same hospital. National significance - even local signifi-
cance — is completely lacking.

III. Evaluation Of This Petition Is Not Affected By
This Court’s Recent Opinion Concerning Standard
Of Review.

The judgment of the Eleventh Circuit in this case was
entered on March 20, 1995. On May 22, 1995 this Court
decided First Options of Chicago Inc. v. Kaplan, ___ U.S. __,
115 S.Ct. 1920 (1995). The First Options opinion will
undoubtedly provide guidance to the Eleventh Circuit in
the future, but it does not affect this petition.

In First Options, the Court was reviewing a decision
of the Third Circuit concerning arbitrability of a dispute,
not exclusion of evidence by an arbitrator. In discussing
standard of review of district court arbitration decisions,

10

the Court criticized Robbins v. Day, 954 F.2d 679, 681-682
(11th Cir. 1992), which explained reasons for applying a
specially lenient abuse of discretion standard when
reviewing district court decisions that confirm arbitration
awards. Id., 115 S.Ct. at 1926.

The per curiam judgment of the Eleventh Circuit
does not state that it was applying a lenient standard of
review.

The Eleventh Circuit affirmance cites 11th Cir. R.
36-1. App. p. 8. That rule provides in pertinent part:

When the court determines that any of the fol-
lowing circumstances exist:

(a) judgment of the district court is based on
findings of fact that are not clearly erro-
neous;

* * +

(e) judgment has been entered without a
reversible error of law;

and an opinion would have no precedential
value, the judgment or order may be affirmed or
enforced without opinion.

This is not a case where the court of appeals wrote a
long opinion holding that there were valid arguments
both ways but that its “lenient standard” impelled it to
uphold the district court. To the contrary, the district
court’s opinion is so overwhelmingly correct that the
court of appeals found no need to write any opinion, and
so affirmed per curiam.

11

CONCLUSION

For the foregoing reasons, the writ of certiorari to the
United States Court of Appeals for the Eleventh Circuit
should be denied.

Respectfully submitted,

FRANK STRELEC, ESQUIRE

(Counsel of Record)

FRAZER F. Hi_per, Esquire

WILLIAMS, PARKER, HARRISON,

Dietz & GETZEN

Post Office Box 3258

Sarasota, Florida 34230

(941) 366-4800

Attorneys for C. Ted French
AND

C. LAawreENCE STAGG, EsQuIRE
AKERMAN, SENTERFITT & EIDSON, P.A.
P.O. Box 3273

Tampa, Florida 33601-3273
Attorneys for Sarasota County
Public Hospital Board,

David Bowman, H.]. Floyd,

and C. Ted French

MURNAGHAN, FERGUSON AND
MAGuIRE

100 S. Tampa Street, Suite 2600

Tampa, Florida 33602

Co-Counsel for Sarasota County

Public Hospital Board,

David Bowman, H.J. Floyd,

and C. Ted French

12

DONALD w. STANLEY, JR., ESQUIRE

SHorFI, SMITH, HENNEN, JENKINS,
STANLEY, GRAMAVOT, P.A.

One North Dale Mabry, Suite 800

Tampa, Florida 32436

Co-Counsel for David Bowman

G. Hunter Gipsons, EsQuire
RICHARD GARLAND, ESQUIRE
DickINSON & Grpsons, P.A.
P.O. Box 3979

Sarasota, Florida 34236
Attorneys for Physicians

Davip McrEADIE, ESQUIRE
Lau, LANE, PIEPER, CONLEY

& MCcREADIE
100 S. Ashley Drive, Suite 1700
Tampa, Florida 33601
Attorneys for Patrick DelMastro,
M.D.

App. 1

APPENDIX

UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF FLORIDA
TAMPA DIVISION

MAHFOUZ EL SHAHAWY,
M.D., etc., et al.,

Plaintiffs,

Case No.
V. 82-1207-CIV-T-WC
WILLIAM T. HARRISON, JR.,
et al.,
Defendants.

ORDER

Before the Court is the plaintiffs’ motion to vacate
arbitration award, (D-482) and defendants’ motion for
enforcement of settlement agreement (D-483).!

The facts and procedural history emanating from this
case are extensive. The Court need not repeat them here
because they are reported at 778 F.2d 636 (11th Cir. 1985),
modified, 790 F.2d 75 and 875 F.2d 1529 (11th Cir. 1989).
The plaintiffs seek vacation of the arbitration award pur-
suant to 9 U.S.C. § 10, and progeny case law. Section 10
provides:

' Plaintiffs’ petition has been filed in violation of Middle
District of Florida Local Rule 3.01(c) to the extent that the peti-
tion exceeds twenty pages in length. The Court directs plain-
tiffs’ counsel to refrain from making non-relevant, personal and
superfluous comments about opposing counsel or parties in
pleadings submitted to the Court.

App. 2

(a) In any of the following cases the Uruted
States Court in and for the district wherein the
award was made may make an order vacating
the award upon the application of any party to
the arbitration -—

(1) Where the award was procured by corrup-
tion, fraud, or undue means.

(2) Where there was evident partiality or cor-
ruption in the arbitrators, or either of them.

(3) Where the arbitrators were guilty of mis-
conduct in refusing to postpone the hearing,
upon sufficient cause shown, or in refusing to
hear evidence pertinent and material to the con-
troversy; or of any other misbehavior by which
the rights of any party have been prejudiced.

(4) Where the arbitrators exceeded their
powers or so imperfectly executed them that a
mutual, final, and definite award upon the sub-
ject matter submitted was not made.

The plaintiffs set forth six arguments in support of their
petition.

As a threshold matter, it should be noted that the
burden to establish these claims rests squarely upon the
plaintiffs. Furthermore, judicial review of arbitration
awards is very limited. Brown v. Rauscher Pierce Refsnes,
Inc., 994 F.2d 775, 778 (11th Cir. 1993). The Eleventh
Circuit has set forth the following framework for analyz-
ing an arbitration award:

The FAA (Federal Arbitration Act) presumes
that awards will be confirmed, 9 U.S.C. § 9, and
enumerates only four narrow bases for
vacatur. . . . In addition to these four statutory
grounds for vacatur, we have recognized two

App. 3

additional non-statutory bases upon which an
arbitration award may be vacated. First, an arbi-
tration award may be vacated if it is arbitrary
and capricious. Second, an arbitration award
may be set aside if contrary to public policy.

Id. at 778-79 (citations omitted).?

The plaintiffs first argue that “the [a]rbitrators know-
ingly and unlawfully excluded a singularly critical piece
of evidence — the “Training, Education and Consulting
Services Report” (“TECS Report”).3 The TECS Report was
prepared by an outside consultant “for the purpose of

2 The plaintiffs do not argue that the arbitrators’ award was
arbitrary and capricious or contrary to public policy. Accord-
ingly, the Court will limit its analysis to the statutory grounds
for vacatur as set forth in 9 U.S.C. § 10.

3 For reasons unknown to this Court, the argument and
subsequent panel ruling were not reported as part of the tran-
script testimony.

Paragraph 7.1 of the parties’ Arbitration Agreement pro-
vides:

In making decisions about discovery and information
exchange procedures, admission of evidence, and all
other matters, the Arbitrators shall balance the need
to consider the evidence against the goal of this
Agreement to ensure that the dispute between Plain-
tiffs and Defendant [sic] is resolved in a timely and
cost-effective way. So long as the Arbitrators allow (1)
the written oral submissions provided for in this
Agreement to be made and (2) the time set out in this
Agreement for preparation and hearing, no party
shall challenge the Award on the ground that the
Arbitrators were guilty of misconduct by failing to
consider pertinent or material evidence or by failing
to postpone a hearing.

App. 4

assessing the current status of the Cardiovascular Pro-
gram with special emphasis on the Heart Catheterization
Laboratory.” In their current motion, the plaintiffs spend
a significant amount of time relaying the contents of the
TECS Report, while advancing few substantive argu-
ments on its alleged wrongful exclusion. The arbitration
panel apparently excluded the TECS Report based upon
the following grounds: (1) hearsay; (2) irrelevance; and
(3) Evidence Rule 403.4

Federal Courts, in dealing with an arbitrator’s refusal
to hear evidence, have held that “[o]nly the most
egregious error which resulted in adversely affecting the
rights of a party would justify the application of the rule
(9 U.S.C. § 10(c)) and require vacatur of an award.” Hunt
v. Mobil Oil Corp., 654 F.Supp 1487, 1512 (S.D.N.Y. 1987).
Furthermore, absent exceptional circumstances, a review-
ing court may not overturn an arbitrator’s determination
of the relevancy or persuasiveness of evidence submitted.
Hoteles Condado Beach, La Concha and Convention Center v.

4 At the arbitration hearing, the plaintiffs also contended
that the TECS Report was admissible because it was not within
the purview of Florida Statute § 768.40. Section 768.40 shields
investigations, proceedings and records of a committee/board
“in any civil or administrative action against any provider of
professional health services arising out of the matters which are
the subject of evaluation and review” by such committee /
board. The defendants argued, inter alia, that 768.40 precluded
admissibility of the TECS Report because it fell squarely within
the language of the statute. The arbitrators found, however, that
§ 768.40 could not bar the admissibility of such evidence in the
trial of a federal cause of action. The Court need not resolve this
issue because the Court finds that the arbitration panel properly
excluded the TECS Report on separate grounds.

era te athe AN dS a RO y

App. 5

Union De Tronquistas Local 901, 763 F.2d 34, 39-40 (1st Cir.
1985).

The Court finds that the arbitrators’ refusal to receive
the TECS Report was not an “egregious error which
resulted in adversely affecting the rights” of the plain-
tiffs. The TECS Report was compiled in 1990, years after
this case was filed. There is no indication that the sce-
narios depicted in the TECS Report took place during the
period of time relevant to this case. Assuming arguendo
that the TECS Report does accurately depict the cardio-
vascular program at the times relevant to this case, the
plaintiffs had ample opportunity to offer proof of their
theory by providing direct evidence. The plaintiffs failure
to do so does not create the exceptional circumstances
contemplated in the case law vacating arbitrator awards.
In sum, the Court finds that the plaintiffs have failed to
meet their burden to establish that the TECS Report was
improperly excluded.

The plaintiffs next argue that the arbitrators improp-
erly denied discovery of the “Horty, Springer & Mattern
documents” (“Horty documents”). Horty, Springer &
Mattern, a law firm, represented the Hospital during the
period of time when Dr. Shahaway’s medical privileges
were terminated.> After a hearing and in camera review of
the documents, the chairman of the arbitration panel
denied the plaintiffs’ motion to compel production based
upon the attorney-client privilege. At the arbitration

> The Hospital Board voluntarily produced certain docu-
ments produced between it and the law firm. It objected, how-
ever, to the production of those documents which contained the
menta! impressions of counsel.

App. 6

hearing the plaintiffs made a similar request, which was
again denied by the chairman.®

The Court finds that, under the preceding authority,
the plaintiffs have failed to meet their burden to show
that the arbitration panel improperly denied discovery of
the Horty documents.

The plaintiffs next argue that: (1) the arbitrators’
failure to enter an award within the allotted time [under
the arbitration agreement] requires vacatur of the award;”
(2) there was evident partiality in the arbitrators; (3) there
was a repudiation of the agreement by the defendants;
and (4) the award was procured by undue means.

The plaintiffs have failed to cite legal authority to
support these arguments. Notwithstanding the plaintiffs’
failure in that regard, the Court again finds that the
plaintiffs have failed to meet their burden.

Accordingly, it is ORDERED:

(1) That the plaintiffs’ motion to vacate arbitration
award (D-482) is DENIED.

(2) That the defendants’ motion for enforcement of
settlement agreement (D-483) is GRANTED and
Endispute, Inc. is ORDERED to deliver the original
mutual release executed by the plaintiffs and original

6 The designated United States Magistrate Judge consid-
ered and denied the same request by Orders of August 4, 1986,
and August 25, 1986.

7 The case cited by plaintiffs, lerna v. Arthur Murray Int'l,
Inc., 833 F.2d 1472 (11th Cir. 1987), does not stand for the propo-
sition asserted.

App. 7

stipulation for dismissal with prejudice executed by
counsel for the parties.

(3) That this case is DISMISSED.

DONE AND ORDERED at Tampa, Florida this 8th
day of SEPT., 1993.

/s/ Elizabeth A. Kovachevich
ELIZABETH A. KOVACHEVICH
UNITED STATES
DISTRICT JUDGE

Copies to
Counsel of Record

App. 8

IN THE UNITED STATES COURT OF APPEALS
FOR THE ELEVENTH CIRCUIT

No. 93-3367

D. C. Docket No. 82-1207-CIV-T-15

MAHFOUZ EL SHAHAWY, M.D., M.S., F.A.C.C.,
Individually and MAHFOUZ EL SHAHAWY, M.D.,
P.A., a Florida Professional Assoc.,

Plaintiff-Appellant,
versus

WILLIAM T. HARRISON, JR., Individually,

F. EDWARDS RUSHTON, M.D., Individually,
JOHN N. CARLSON, M.D., Individually,
WILLIAM L. PAGE, M.D., Individually,
RICHARD J. SARKIS, M.D., Individually, Et Al.,

Defendants-Appellees.

Appeal from the United States District Court
for the Middle District of Florida

(March 20, 1995)

Before COX and BLACK, Circuit Judges, and FAY, Senior
Circuit Judge.

PER CURIAM: AFFIRMED. See 11th Cir. R. 36-1.

“Costs taxed against plaintiff-appellant.”

App. 9

Judgment Entered: March 20, 1995
For the Court: Miguel J. Cortez, Clerk

By: /s/ Karleen McNabb
Deputy Clerk

ISSUED AS MANDATE: APR 28 1995

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386012_1945%3A2. Public record. Not legal advice.
