Opinion ID: 2423786
Heading Depth: 2
Heading Rank: 1

Heading: Application of Res Judicata to a Fee Arbitration Panel Determination

Text: [¶ 17] Emerson first argues the narrow legal issue that a Fee Arbitration Panel determination cannot constitute an adjudication because there is no opportunity for de novo appellate review of that determination. Consequently, Emerson asserts, collateral estoppel cannot bar litigation of factual issues, such as those relating to her legal malpractice claims against K & P and Perry, in a subsequent court proceeding. [¶ 18] The findings made by the Fee Arbitration Panel, to the extent necessary to its determination, see Efstathiou, 2009 ME 107, ¶ 7, 982 A.2d at 342, have preclusive effect for purposes of collateral estoppel. We have recently held that a valid and final award by arbitration has the same effects under the rules of res judicata... as a judgment of a court as long as the process leading to the award contains the essential elements of adjudication. Beal v. Allstate Ins. Co., 2010 ME 20, ¶ 14, 989 A.2d 733, 739 (holding that an arbitration award had preclusive effect under the doctrine of collateral estoppel even though the award was not judicially confirmed). [¶ 19] The essential elements of adjudication include: (1) adequate notice, (2) the right to present evidence and legal argument and to rebut opposing evidence and argument, (3) a formulation of issues of law or fact to apply rules to specified parties concerning a specified transaction, (4) the rendition of a final decision, and (5) any other procedural elements as may be necessary to constitute the proceeding a sufficient means of conclusively determining the matter in question. Id. ¶ 13, 989 A.2d at 738. Contrary to Emerson's contention, the availability of de novo review on the merits of the Fee Arbitration Panel's decision is not a factor that is considered in determining that decision's preclusive effect. [1] [¶ 20] The summary judgment record reveals that the elements of adjudication were present in the fee arbitration proceeding as between Emerson and Perry/K & P, which resulted in a valid and final award. Accordingly, the collateral estoppel component of the res judicata doctrine is applicable to bar the relitigation of factual issues necessarily determined by the Fee Arbitration Panel. [¶ 21] Even if the Fee Arbitration Panel's final determination was not judicially confirmed or reduced to a court judgment, because the essential elements of adjudication were present in the fee arbitration proceeding, the panel's determination is capable, as a matter of law, of having preclusive effect. See Beal, 2010 ME 20, ¶ 14, 989 A.2d at 739. In this case, the record indicates that the court did enter a judgment on the Panel's determination pursuant to M. Bar R. 9(i) and the Uniform Arbitration Act, 14 M.R.S. §§ 5927-5949 (2009). Such a judgment may be enforced as any other judgment or decree, 14 M.R.S. § 5940, which is a final judgment capable of preclusive effect. See, e.g., W. Indus. & Envtl. Servs., Inc. v. Kaldveer Assocs., Inc., 126 Idaho 541, 887 P.2d 1048, 1050-51 (1994) (holding that a judgment entered upon an arbitration award, pursuant to that state's Uniform Arbitration Act, is a final judgment for purposes of applying collateral estoppel, determining also that adjudicatory procedures were present in the arbitration proceeding).