Woischke v. Stursberg & Fine, Inc.
Woischke v. Stursberg & Fine, Inc.
Opinion of the Court
Respondents William Woischke, Shirley Woischke, Woischke Enterprises, LLC, and Woischke Parks, LLC (collectively "Woischke") sued appellants Stursberg & Fine, Inc., Henry Stursberg, Jeremy Stursberg, and Joel Zimmerman (collectively "Stursberg") after learning that Stursberg had provided brokerage services to Woischke without the required state license. Woischke alleged, in relevant part, that the fee agreement obligating Woischke to pay for those services was void as contrary to public policy. Stursberg moved to compel arbitration in Pennsylvania pursuant to the terms of the fee agreement and to dismiss, or in the alternative to stay, the underlying proceedings. The district court concluded that the fee agreement was not void, ordered arbitration, and dismissed the case. The court of appeals reversed, concluding that the district court's order was appealable and that the fee agreement was void.
We conclude that the district court erred by directing entry of final judgment rather than staying the proceedings, and thus there is no proper final judgment from *421which to take an appeal. We therefore vacate the court of appeals' decision and remand to the district court with instructions to vacate the judgment and to enter a stay pending the completion of arbitration.
FACTS
This case centers on a brokerage fee agreement between Woischke Enterprises and Stursberg & Fine. The contract, signed on March 4, 2016, provided that Stursberg & Fine would attempt to find a purchaser for Woischke Enterprises' mobile-home and recreational-vehicle park. If the property was not sold, the contract granted Stursberg & Fine the exclusive right to refinance the property and collect an origination fee.
The contract contained an arbitration clause. It read, "[Woischke Enterprises] agrees that all disputes arising out of this Fee Agreement will be submitted to ADR (Alternative Dispute Resolution) Options, Inc., Two Commerce Square, Suite 1100, 2001 Market Street, Philadelphia, PA.... [Woischke Enterprises] and Stursberg & Fine agree the decision by the ADR shall be binding to both parties."
Woischke Enterprises did not sell the property, and Stursberg & Fine obtained a mortgage that closed on May 5, 2016. At the time of closing, Stursberg & Fine's origination fee was held in escrow. Immediately after closing but before disbursement, Woischke informed Henry Stursberg that "no record of any broker license for any of the [appellants] could be located, and that [appellants] could not receive the funds unless they were licensed at the time of the transaction." The parties agreed to "an extension until June 1." In the interim, Henry Stursberg contacted the Minnesota Department of Commerce, which issued Stursberg & Fine a limited broker license on May 24. Later that day, Stursberg contacted Woischke, asking it to release the escrowed funds. Woischke refused to do so.
On June 3, Woischke filed a complaint in district court seeking, inter alia, a declaration that it was entitled to the escrowed funds.
Woischke appealed. The court of appeals questioned whether it had jurisdiction and, after briefing by the parties, accepted jurisdiction over the case. Woischke v. Stursberg & Fine, Inc. , No. A17-0408, Order at 2-3 (Minn. App. filed Apr. 25, 2017). While the appeal was pending, we issued our decision in City of Rochester v. Kottschade ,
In a published opinion, the court of appeals reversed the district court's decision. Woischke v. Stursberg & Fine, Inc. ,
ANALYSIS
This case requires us to consider the scope of appellate review of a district court order that dismisses a case and orders arbitration when the order is based on the conclusion that the contract requiring arbitration is enforceable. We review questions of appellate jurisdiction de novo. Howard v. Svoboda ,
"An appeal may be taken ... from a final judgment." Minn. R. Civ. App. P. 103.03(a). An order dismissing all claims constitutes a final judgment because it ends the litigation on the merits and leaves nothing for the court to do but execute the judgment. T.A. Schifsky & Sons, Inc. v. Bahr Const., LLC ,
On its face, the application of these rules to this case is straightforward. The district court erred by dismissing the case instead of staying proceedings, and the court of appeals erred when it concluded that it had jurisdiction over the merits of this case.
But Woischke contends that these rules do not apply here because the district court addressed the merits of the lawsuit by interpreting the fee agreement in connection with its analysis of Minn. Stat. ch. 82.
Moreover, Eckblad is distinguishable because the district court in Eckblad did not order arbitration. Instead, the court issued only a final declaratory judgment, which is *423appealable. See Minn. R. Civ. App. P. 103.03(a) ; see also Eckblad ,
Woischke seeks to avoid this distinction by arguing that the arbitration order was contained in a final judgment, which is appealable. See City of Rochester ,
CONCLUSION
For the foregoing reasons, we vacate the decision of the court of appeals and remand to the district court with instructions to vacate the judgment and to enter an order staying the underlying proceedings until arbitration is completed.
Vacated and remanded.
Woischke claimed that, because Stursberg did not have a broker license at the time of the transaction, Stursberg had violated
At oral argument, Woischke also argued that arbitration was not required because (1) the arbitration clause of the fee agreement is unconscionable; and (2) the prohibition in
Reference
- Full Case Name
- William WOISCHKE v. STURSBERG & FINE, INC., John Doe
- Cited By
- 1 case
- Status
- Published