Opinion ID: 417775
Heading Depth: 2
Heading Rank: 2

Heading: Goldberg's Claims

Text: 37 The district court granted judgment in favor of Schwartz on his cross-claim against Goldberg under the ORI Repayment Agreement, finding that Goldberg had failed to cooperate as ordered by the arbitration decision. Goldberg challenges this portion of the judgment on a number of grounds. His principal contention is that the issues raised by Schwartz's cross-claim had previously been submitted to arbitration, and that the arbitrators' award, which was confirmed by the appropriate state courts, became res judicata on these issues. This argument must be rejected on the basis of the Arbitrators' Opinion itself. 38 In 1975 the arbitrators rejected Schwartz's claim that Goldberg was liable to him under the ORI Repayment Agreement. At that time, however, although Travelers had denied Woodcrest's claims for reimbursement for its payments to ORI, there was pending the appeal by Schwartz and Goldberg, seeking payment of those claims under the exception provided by 42 C.F.R. Sec. 405.427(d). Accordingly, Schwartz's claim in 1975 was premature, and in dismissing it the arbitrators stated explicitly that nothing in their award was to preclude Schwartz from asserting such a claim against Goldberg upon a final judicial determination 10 that Woodcrest should not be reimbursed for its ORI payments by virtue of incorrect or inappropriate rates. See Arbitrators' Opinion set forth in full in Part I.A. above. Hence nothing could be clearer than the fact that the arbitrators' award was not a final determination of the rights of Schwartz and Goldberg under the ORI Repayment Agreement. The court confirmed the award without modification, and the fact that the award was judicially confirmed does not imbue it with any greater finality, on this undecided issue, than the arbitrators intended it to have. 39 As to the merits of Schwartz's cross-claim, we are unpersuaded that the entry of judgment against Goldberg was improper. The arbitrators did not simply decline to decide the question of Schwartz's rights under the ORI Repayment Agreement; they also directed Goldberg to cooperate fully in the adjudication of these reimbursement claims. Id. It is entirely proper for arbitrators to direct such conduct of the parties as is necessary to the settlement of the matters in dispute, Ruppert v. Egelhofer, 3 N.Y.2d 576, 581, 170 N.Y.S.2d 785, 788, 148 N.E.2d 129, 131 (1958); accord 6 C.J.S. Arbitration Sec. 110, at 342 (1975), and the district court's finding here that Goldberg's conduct violated the arbitrators' directive was not error. Apparently there was no dispute in the district court as to the fact that Goldberg did not fully cooperate--even after remand by the court for reconsideration--in the hearing panel's review of Woodcrest's claims regarding its ORI payments. At every stage, the hearing officials stated that ORI had withheld needed information, with the result that its costs--the maximum rate of reimbursement normally allowed under 42 C.F.R. Sec. 405.427(a)--could not be determined. In the circumstances, we find no error.