BREACH OF CONTRACT

Franceschi v. Hosp. Gen. San Carlos, Inc., Nos. 04-2104, 04-2105 (1st Cir. Aug. 24, 2005)

A radiologist brought suit against his former hospital-employer seeking damages for breach of contract. The dispute arose over an interpretation of how the radiologist would be compensated under his employment contract. Before the trial began, the hospital requested arbitration based on a provision in the contract, but was rebuffed by the district court. The district court later awarded the radiologist damages and, on appeal, the hospital again argued the employment contract required mandatory arbitration. The circuit court dismissed the hospital’s argument, stating that because the hospital did not file an interlocutory appeal when it was denied arbitration by the district court, as permitted under the Federal Arbitration Act, the hospital had forfeited the right to arbitration.