Md. R. Spec. Proc. 15-403

As amended through October 15, 2024

Rule 15-403 - Action to Reject Health Claims Award or Assessment of Costs

(a) Rejection of Award or Costs. A party may reject for any reason an award, the assessment of costs under an award, or both. An action to reject filed pursuant to this Rule constitutes the notice of rejection required by Code, Courts Article, § 3-2A-06(a). An action to reject shall not impair the award or the assessment of costs as to any party before the arbitration panel who has not rejected the award or the assessment of costs and is not named as a defendant in the action.

(b) Plaintiff's Action to Reject.

(1)How Commenced. The plaintiff shall commence an action to reject by filing a complaint with a circuit court or with any other court of competent jurisdiction. The complaint shall (A) identify the award and state whether the award, the assessment of costs, or both are being rejected, (B) state that the plaintiff is the rejecting party, and (C) identify all defendants as to whom the plaintiff rejects the award, the assessment of the costs, or both. If the complaint is filed in a circuit court, it shall comply with Rules 2-303 through 2-305. The complaint may state that the amount of damages sought is more than the required jurisdictional amount, but the amount sought shall not be stated.

Committee note:See Ott v. Kaiser Georgetown Health Plan, 309 Md. 641 (1987), recognizing that an action to reject an award may be filed in a United States District Court.

(2)Time for Filing. The complaint shall be filed within the later of (A) 30 days after the Director serves the award or the assessment of costs or (B) ten days after service by the chair of the panel or the Director, whichever first occurs, of the disposition of a timely-filed application for modification or correction. A complaint filed before the disposition of an application does not deprive the panel of jurisdiction to dispose of the application. The action in the circuit court shall not proceed until the date a copy of the disposition is filed in that court. All time periods provided for in this Rule shall begin to run from that date.

(c) Defendant's Action to Reject.

(1)How Commenced. The defendant shall commence an action to reject an award, the assessment of costs, or both by filing a notice of action to reject with the Director. The notice shall (A) identify the award, state whether the award, the assessment of costs, or both are being rejected, (B) state that the defendant is the rejecting party, (C) identify all plaintiffs as to whom the defendant rejects the award, the assessment of costs, or both, and (D) allege that the monetary amount being rejected is more than the required jurisdictional amount.

(2)Time for Filing. The notice shall be filed within the later of (A) 30 days after the Director serves the award or the assessment of costs or (B) ten days after service by the chair of the panel or the Director, whichever first occurs, of the disposition of a timely-filed application for modification or correction. A notice filed before the disposition of an application does not deprive the panel of jurisdiction to consider the application.

(3)Plaintiff to File Complaint. When a defendant files a notice of action to reject, a plaintiff who desires to contest the action or reject the award or the assessment of costs shall file a complaint against any rejecting defendants and any defendants as to whom the plaintiff rejects the award or the assessment of costs. The complaint shall be filed within the later of (A) 30 days after service of the notice or (B) ten days after service by the chair of the panel or the Director, whichever first occurs, of the disposition of a timely-filed application for modification or correction. The complaint shall (A) identify the award and whether the award, the assessment of costs, or both are being rejected, (B) state who rejects the award, the assessment of costs, or both, and (C) identify all parties against whom the award, the assessment of costs, or both are rejected. If the complaint is filed in a circuit court, it shall comply with Rules 2-303 through 2-305. The complaint may state that the amount of damages sought is more than the required jurisdictional amount, but the amount sought shall not be stated.

(d) Service.

(1)Of Complaint. The plaintiff shall serve the complaint upon each defendant named in the complaint, the Director, and all other parties to the arbitration proceeding. Service upon the defendant shall be either in the manner prescribed by Rule 2-121 or, if the defendant was represented by counsel in the arbitration proceeding, on counsel by certified mail, return receipt requested. Service upon all other parties to the arbitration proceeding and upon the Director shall be in the manner prescribed by Rule 1-321.

(2)Of Notice of Action to Reject. The defendant shall serve a copy of the notice to reject upon the plaintiff and all other parties to the arbitration proceeding. Service upon the plaintiff shall be either in the manner prescribed by Rule 2-121 or, if the plaintiff was represented by counsel in the arbitration proceeding, on counsel by certified mail, return receipt requested. Service upon all other parties to the arbitration proceeding shall be in the manner prescribed by Rule 1-321.

(e) Modification, Correction, or Vacation of Award or Assessment of Costs by Court.

(1)Motion; When Filed. In an action to reject, an allegation that an award or the assessment of costs is improper because of any ground stated in Code, Courts Article, § 3-223(b), § 3-224(b)(1), (2), (3), or (4), or § 3-2A-05(h) shall be made by motion filed at least 30 days before trial, or the ground is waived. The court shall decide the motion before trial.

(2)Modification of Award. If the court finds that a condition stated in Code, Courts Article, § 3-223(b) exists, or that the award or assessment of costs was not appropriately modified in accordance with Code, Courts Article, § 3-2A-05(h), it shall modify or correct the award or the assessment of costs. If the rejecting party still desires to proceed with judicial review, the modified or corrected award or the assessment of costs shall be substituted for the original award.

(3)Vacation of Award. If the court finds that a condition stated in Code, Courts Article, § 3-224(b)(1), (2), (3), or (4) exists, it shall vacate the award or the assessment of costs, and trial of the case shall proceed as if there had been no award or assessment of costs.

Md. R. Spec. Proc. 15-403

This Rule is in part derived from Rules BY2 through BY4 and in part new.

Adopted June 5, 1996, eff. 1/1/1997.

HISTORICAL NOTES

Derivation:

Maryland Rule of Procedure BY2, adopted Nov. 16, 1978, eff. Jan. 1, 1979, amended eff. Feb. 17, 1984; amended April 6, 1984, eff. July 1, 1984, related to commencement of actions to nullify a health care malpractice award, rescinded June 5, 1996, eff. Jan. 1, 1997.

Maryland Rule of Procedure BY3, adopted Nov. 16, 1978, eff. Jan. 1, 1979, related to parties, rescinded June 5, 1996, eff. Jan. 1, 1997.

Maryland Rule of Procedure BY4, adopted Nov. 16, 1978, eff. Jan. 1, 1979, amended April 6, 1984, eff. July 1, 1984, related to procedure, rescinded June 5, 1996, eff. Jan. 1, 1997.

See Code, Courts Article, § 3-2A-06(c).