Justia California Court of Appeals Opinion Summaries

Articles Posted in Business Law
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Kaiser Permanente covered three patients who received care at an emergency room operated by Dameron Hospital Association. The patients were injured due to the negligence of third party tortfeasors who had automobile liability insurance with California Automobile Association Inter-insurance Bureau (AAA) and Allstate Insurance Company. Unlike Kaiser, neither AAA nor Allstate had contracts with Dameron. In the absence of an agreement for negotiated billing rates, Dameron sought to collect from AAA and Allstate its customary billing rates by asserting liens filed under the Hospital Lien Act (HLA). AAA and Allstate ignored Dameron’s HLA liens when paying settlements to the three Kaiser patients. Upon learning of the settlements, Dameron sued AAA and Allstate to recover on its liens. The trial court granted the automobile liability insurers’ motions for summary judgment on grounds the patients’ debts had already been fully satisfied by their health care service plans. Reasoning the HLA liens were extinguished for lack of any underlying debt, the trial court dismissed the case. The trial court further found dismissal was warranted because Dameron failed to timely file some of its HLA liens against AAA. The issue this case presented for the Court of Appeal was whether a heath care service plan’s payment of a previously negotiated rate for emergency room services insulate the tortfeasor’s automobile liability insurer from having to pay the customary rate for medical care rendered? AAA and Allstate contended they were not responsible for any amount after Kaiser paid in full the bill for the emergency room services provided by Dameron. Dameron contended that it contracted with Kaiser to preserve its rights to recover the customary billing rates from tortfeasors and their automobile liability insurers. Dameron argued the tortfeasors and their liability insurers were responsible for the entire bill for medical services at the customary rate, not just the difference between the reimbursement received from Kaiser and the customary billing rate. Although Dameron claimed it should benefit from the California Supreme Court’s holding that it may avoid extinguishment of its HLA liens upon receiving payments from health insurers, the contract in this case preceded that case by 10 years. The Court of Appeal concluded that the Dameron/Kaiser contract did not preserve the right to recover the customary billing rate for emergency room services from third party tortfeasors: "[I]f Dameron wishes to preserve its right to recover its customary billing rates through an HLA lien, it is free to contract for this right. But Dameron must actually contract for this right. A history of voluntary cooperation with Kaiser does not suffice to avail Dameron of the [Supreme Court's] guidance on reservation of contractual rights under the HLA." Consequently, the trial court properly granted summary judgment in favor of AAA and Allstate. As to Dameron’s argument that it filed a timely claim relating to patient Rita H.’s HLA lien, the Court of Appeal affirmed the trial court’s dismissal based on the statute of limitations. Dameron has not made a sufficient showing of diligence to toll the claim under the discovery rule. View "Dameron Hospital Assn. v. AAA etc. Ins. Exchange" on Justia Law

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Carl McIntyre, Destiny McIntyre (through her guardian ad litem), Theresa McIntyre, and My Jeweler, Inc. appealed a judgment entered on a jury verdict in favor of The Colonies-Pacific, LLC. Colonies owns the Colonies Crossroads shopping center in Upland. The common areas of the shopping center were under Colonies's exclusive control, but maintenance expenses were chargeable to tenants on a pro rata basis. Initially, Colonies did not budget anything for security services. McIntyre owned a jewelry business called My Jeweler. In January 2006, two stores in Colonies Crossroads were robbed at gunpoint, eight days apart. In May 2006, there was a shoplifting incident at another store, which police reportedly classified as a robbery because it resulted in a physical altercation in which the perpetrator pulled out a knife. After the first two robberies, McIntyre expressed concern several times about the lack of security to Leanne Meissner, an employee of Colonies's property management company. Meissner reported the robberies to her superior, but Colonies decided not to provide security or seek anchor tenants' approval of an expense for security. Rather, Colonies asked the Upland Police Department to "step up the patrol through the center" because it believed "the police are much more capable than the . . . private security force." McIntyre took his then 14-year-old daughter, Destiny, to work with him at the Colonies Crossroads store on summer morning in 2006. Shortly after the store opened, three men entered. Despite offering his cooperation, the men severely pistol whipped McIntyre, and one of them tied up Destiny and held a gun to her head. The men shattered glass display cases and stole jewelry, cash and digital security recording equipment. After this robbery, Colonies hired a security service to provide an unarmed guard to patrol the common areas of the shopping center. The McIntyres sued Colonies for negligence and premises liability, a species of negligence. At the beginning of trial, Colonies brought a motion in limine under section 1151 to exclude evidence of subsequent remedial measures. The McIntyres argued section 1151 was inapplicable because they did not intend to use the evidence to show Colonies was negligent by breaching its duty of care, but rather to show the lack of a security patrol was the cause of the robbery. The McIntyres contended the trial court abused its discretion by excluding the evidence. Alternatively, the McIntyres contended the court abused its discretion by not admitting the evidence as rebuttal to a comment Colonies's attorney made during opening statement. The Court of Appeal found no abuse of discretion and affirmed the judgment. View "McIntyre v. The Colonies-Pacific" on Justia Law

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Plaintiff filed suit seeking an injunction to prevent Yelp, a popular website, from making claims about the accuracy and efficacy of its "filter" of unreliable or biased customer reviews. The trial court granted Yelp's special motion to strike plaintiff's complaint under Code of Civil Procedure section 425.16 because Yelp's statements at issue were matters of public interest. The court concluded that Yelp's representations about its review filter constitute commercial speech squarely within the public speech exemption of section 425.17, subdivision (c) where Yelp's statements about its review filter consists of representations of fact about Yelp's website that are made for the purpose of obtaining approval for, promoting, or securing advertisements on Yelp's website, and Yelp's statements were made in the course of delivering Yelp's website. Further, Yelp's intended audience is an actual or potential buyer or customer, or a person likely to repeat the statement to, or otherwise influence, an actual or potential buyer or customer. The court rejected Yelp's assertion that the federal Communications Decency Act, 47 U.S.C. 230, barred plaintiff's claims. Accordingly, the court reversed the trial court's order. Finally, plaintiff shall be given an opportunity to move to amend his complaint to substitute the real party in interest in this action as plaintiff. View "Demetriades v. Yelp, Inc." on Justia Law