L. G., by Chippewa Family Servs., Inc. v. Aurora Residential Alternatives, Inc.
L. G., by Chippewa Family Servs., Inc. v. Aurora Residential Alternatives, Inc.
Opinion
*592 *727 ¶1 This case addresses whether a circuit court order denying a request to compel arbitration and stay a pending lawsuit is final for the purposes of appeal. We hold that it is and so reverse and remand the matter to the court of appeals.
I. BACKGROUND
¶2 Aurora Residential Alternatives, Inc., Aurora Integrated Management, Inc., and Aurora Community Services, Inc. (collectively, "Aurora") own and operate residential facilities. L.G., the respondent, is a mentally disabled resident of one of Aurora's facilities. In October 2012, L.G. accused an Aurora employee of sexually assaulting her by forcing her to perform sexual acts on him, for which he was convicted of fourth-degree sexual assault.
¶3 Approximately four years later, L.G. filed a lawsuit against Aurora over the incident in the Dunn County Circuit Court. 1 But L.G. 2 had signed an arbitration agreement with Aurora that provided, in relevant part:
*728 Any and all claims or controversies arising out of or in any way relating to this Arbitration Agreement, the Admission Agreement, and/or any of the Consumer's stay(s) at the Home, including disputes regarding the making, execution, validity, enforceability, voidability, unconscionability, severability, scope, arbitrability, interpretation, waiver, duress, preemption, or any other defense to enforceability of this Arbitration Agreement, whether arising out of State or Federal law, whether now existing or arising in the future, whether for statutory, compensatory or punitive damages and whether sounding in breach of contract, tort (i.e., negligence or wrongful death), or breach of statutory duties (including, without limitation, any claim based on Consumers' Rights or a claim for unpaid Home charges), irrespective of the basis for the duty or of the legal theories upon which the claim is asserted, shall be submitted to binding arbitration.
....
The Parties hereby expressly agree that the Admission Agreement, this Arbitration Agreement, and the Consumer's stay at the Home involve interstate commerce. The Parties also stipulate that the Federal Arbitration Act,9 U.S.C. § 1 - 16 in effect as of July 1, 2013 ("FAA"), shall apply to this Arbitration Agreement and that the FAA shall preempt any inconsistent state law and shall not be reverse preempted.
(Emphasis in original.)
¶4 In response to the lawsuit, Aurora filed a motion to compel arbitration and stay the circuit court proceedings pending the arbitration pursuant to the Federal Arbitration Act,
¶6 Aurora filed a petition for review of the court of appeals' orders, which we granted. We now reverse the court of appeals' dismissal of Aurora's appeal.
II. STANDARD OF REVIEW
¶7 In the course of this opinion we are required to interpret and apply our statutes. "These are questions of law that we review de novo."
Kieninger v. Crown Equip. Corp.
,
*731 III. ANALYSIS
¶8 Whether Aurora may appeal the Order depends entirely on whether it was final within the meaning of
¶9 The finality of the Order is outcome dispositive because of its jurisdictional consequences. Our statutes provide for an appeal as of right only from final orders or judgments: "A final judgment or a final order of a circuit court may be appealed as a matter of right to the court of appeals unless otherwise expressly provided by law."
*732
McConley v. T.C. Visions, Inc.
,
¶10 "Finality," to the extent it concerns us today, has two components. Our statutes say that "[a] final judgment or final order is a judgment, order or disposition that disposes of the entire matter in litigation as to one or more of the parties, whether [it is] rendered in an action or special proceeding ...."
A. "Action" versus "Special Proceeding"
¶11 We will start with the first component-whether the Order denying the Motion to compel arbitration was entered in an action as opposed to a special proceeding. The distinction is important because it will define the "matter in litigation" that must be resolved before we may consider whether the order was final. If the Motion was part of L.G.'s "action" against Aurora for damages stemming from the sexual assault, then there can be no disposition of the "entire matter in litigation" until the question of Aurora's alleged liability to L.G. has been answered. But if the Motion represents a "special proceeding" separate from L.G.'s "action," then we will need to identify the "disputed matter" within that special proceeding so that we may determine whether the Order entirely disposed of it. The court of appeals' conclusion that the
*733
Order had not disposed of the entire matter indicates it understood the Motion to have been part of L.G.'s action, rather than a separate special proceeding. This is a question on which we have not yet provided any guidance.
See
Wisconsin Auto Title Loans, Inc. v. Jones
, No. 2011AP2482, unpublished slip op.,
¶13 When a party to an arbitration agreement refuses to arbitrate, the other party may apply to our courts for relief. If there is no pending lawsuit when the refusal occurs, the aggrieved party may "petition" the circuit court for an order compelling arbitration: "The party aggrieved by the alleged failure, neglect or refusal of another to perform under a written agreement for arbitration may petition any court of record having jurisdiction of the parties or of the property for an order directing that such arbitration proceed as provided for in such agreement."
¶14 Upon the filing of such a petition, the Arbitration Act limits the circuit court's role to determining
*734
the existence of an enforceable arbitration agreement and any failure to comply with it. If the parties do not dispute those matters, the circuit court simply orders compliance: "The court shall hear the parties, and upon being satisfied that the making of the agreement for arbitration or the failure to comply therewith is not in issue, the court shall make an order directing the parties to proceed to arbitration in accordance with the terms of the agreement."
¶16 The circuit court's role is similarly limited when the attempt to enforce an arbitration agreement takes place in a pending lawsuit. The procedure under
If any suit or proceeding be brought upon any issue referable to arbitration under an agreement in writing for such arbitration, the court in which such suit is pending, upon being satisfied that the issue involved in such suit or proceeding is referable to arbitration under such an agreement, shall on application of one of the parties stay the trial of the action until such arbitration has been had in accordance with the terms of the agreement, providing the applicant for the stay is not in default in proceeding with such arbitration.
*736
§ 788.02. The stay issues if the circuit court is "satisfied that the issue involved in such suit or proceeding is referable to arbitration under such an [arbitration] agreement."
¶17 An application to stay proceedings under
¶18 The relationship between an application to stay and the action in which it is made convinces us the former is a special proceeding within the meaning of
¶19 We used the
Voss
test just last term to help us identify the relationship between a pending criminal
*737
proceeding and a proceeding to determine the defendant's competency.
State v. Scott
,
¶20 L.G. rejects this analysis, and points instead to a line of cases that describe a special proceeding as "one either entirely outside of an action, as a
*738
proceeding for contempt or to condemn land, or one merely connected with an action as a proceeding by a person not a party to an action to be made such."
State v. Wisconsin Tel. Co.
,
¶21 We believe the best reading of
Alger
,
Wisconsin Tel. Co.
, and
Wellens
is that they describe, but do not prescribe. In
Alger
we relied on
Black's Law Dictionary
for the proposition that special proceedings "can be commenced independently of a pending action."
¶22 Reading Alger as descriptive, as well as Wisconsin Tel. Co. and Wellens , harmonizes them with Scott , our most recent analysis of this question. The competency proceeding at issue in Scott was most assuredly not "a stand-alone proceeding that [was] not part of an existing case."
*598
Alger
,
*740 B. Finality
¶23 The second (and final) step in our analysis is determining whether the circuit court's order denying Aurora's motion to compel arbitration represented a final disposition of "the entire matter in litigation as to one or more of the parties" in the special proceeding.
¶24 We said in a recent case that, in the context of a petition to compel arbitration, the potential scope of matters the court may address is quite limited: "In an action to compel arbitration under
¶25 Aurora's Motion presented no issue to the circuit court outside the parameters of
¶26 We conclude that the circuit court's Order disposed of the entire matter in controversy between L.G. and Aurora in the
*743 IV. CONCLUSION
¶27 We hold that an application to stay pursuant to
By the Court. -The decision of the court of appeals is reversed.
¶28 SHIRLEY S. ABRAHAMSON, J. and ANN WALSH BRADLEY, J., withdrew from participation before oral argument.
The Honorable Rod W. Smeltzer presided.
Chippewa Family Services, Inc. is L.G.'s legal guardian and represents her interests in this matter, just as it did in executing the arbitration agreement.
The Order also decided: (1) Massachusetts Bay Insurance Company's motion to bifurcate insurance issues and stay the proceedings; and (2) a motion for a protective order related to discovery issues.
When no party provides written notice of entry of a final judgment or order, the appellant must file a notice of appeal no later than 90 days after entry of the order appealed from:
Initiating an appeal . An appeal to the court of appeals must be initiated within 45 days of entry of a final judgment or order appealed from if written notice of the entry of a final judgment or order is given within 21 days of the final judgment or order as provided in s. 806.06 (5), or within 90 days of entry if notice is not given, except as provided in this section or otherwise expressly provided by law. Time limits for seeking review of a nonfinal judgment or order are established in s. 809.50.
All subsequent references to the Wisconsin Statutes are to the 2017-18 version unless otherwise indicated.
Wisconsin Stat. § 808.03(2), in part, provides: "A judgment or order not appealable as a matter of right under sub. (1) may be appealed to the court of appeals in advance of a final judgment or order upon leave granted by the court[.]"
"[S]tatutory interpretation 'begins with the language of the statute. If the meaning of the statute is plain, we ordinarily stop the inquiry.' Statutory language is given its common, ordinary, and accepted meaning, except that technical or specially-defined words or phrases are given their technical or special definitional meaning."
State ex rel. Kalal v. Circuit Court for Dane Cty.
,
In the absence of a jury demand, the circuit court decides any challenge to the making of the arbitration agreement or deficiency in performance.
See
L.G. also directs us to several cases in which the court of appeals has treated orders disposing of motions to stay an action in favor of arbitration as nonfinal.
See, e.g.
,
Midwest Neurosciences Assocs., LLC v. Great Lakes Neurosurgical Assocs., LLC
,
There are two reasons none of these cases are instructive. First, in each of these cases the
appellant
characterized the order as nonfinal by filing a petition for permissive review under
The Arbitration Act allows a party to file an "application" to stay the trial,
The order also said: "THIS IS A FINAL ORDER FOR PURPOSES OF APPEAL." Such a statement, while potentially helpful to litigants as a warning, has no legal effect.
Wambolt v. West Bend Mut. Ins. Co.
,
Because we conclude that a circuit court order resolving an application to compel arbitration pursuant to
Reference
- Full Case Name
- L. G., BY Her Guardian, CHIPPEWA FAMILY SERVICES, INC., Plaintiff-Respondent, State of Wisconsin Department of Health Services and Centers for Medicare & Medicaid Services, Involuntary-Plaintiffs, v. AURORA RESIDENTIAL ALTERNATIVES, INC., Aurora Integrated Management, Inc. and Aurora Community Services, Inc., Defendants-Appellants-Petitioners, Aurora 023 Community Based Residential Facility and Massachusetts Bay Insurance Company, Defendants.
- Cited By
- 5 cases
- Status
- Published