 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Coast Plaza Doctors Hospital v. Blue Cross of California8/10/2000
unction prohibiting Blue Cross from providing reimbursement rates at unreasonable and anti-competitive levels." Such relief would certainly constitute a public injunctive remedy within the meaning of Broughton. Indeed, we are unable to distinguish Coast Plaza's requests for public injunctive relief from those asserted by the plaintiff in Broughton.
Coast Plaza's requests for injunctive relief for the benefit of the public at large as a remedy under the two statutory schemes, are the only requests for relief which are inarbitrable. Applying Broughton here, Coast Plaza must arbitrate the remainder of its causes of action and non-injunctive remedies, including its purported entitlement to monetary damages. (Broughton, supra, 21 Cal.4th at pp. 1080-1081, fn. 5.) (Mitsubishi Motors Corp. v. Soler Chrysler-Plymouth, Inc. (1985) 473 U.S. 614, 624 [claims designed primarily to compensate injured private party must be arbitrated even though purpose of statutory scheme is to promote a public interest].)
Thus, we reject Coast Plaza's argument that its claim for public injunctive relief precludes enforcement of the arbitration clause in this case. As we have already concluded that Coast Plaza's claims are subject to the Service Agreement's arbitration clause, we must conclude that all of those claims, save those seeking public injunctive relief, must be severed and resolved in arbitration. (Broughton, supra, 21 Cal.4th at p. 1088.)
4. Pending Outcome Of The Arbitration, All Further Proceedings In The Trial Court Should Be Stayed
Upon remand, the trial court will order the claims asserted by Coast Plaza to be arbitrated in accordance with the terms of the arbitration clause. We agree with Blue Cross that pending the conclusion of that arbitration, all further proceedings in the trial court should be stayed. To do otherwise would undermine the very statutory purpose of the agreement to arbitrate. A stay is appropriate where " n the absence of a stay, the continuation of the proceedings in the trial court disrupts the arbitration proceedings and can render them ineffective." (Federal Ins. Co. v. Superior Court (1998) 60 Cal.App.4th 1370, 1375.)
The only issue which will decided by the trial court is the question of an injunction to preclude Blue Cross' alleged discriminatory and anti-competitive behavior. The litigation of Coast Plaza's right to such relief should be stayed until the arbitration resolves Coast Plaza's substantive causes of action and issues of whether Blue Cross has engaged in unfair trade practices or unfair competition. The outcome of the arbitration on those claims may render entirely moot the issue of Coast Plaza's entitlement to injunctive relief. If no violations of the Business and Professions Code actually occurred and/or no such claim will lie, the arbitrator's award, when reduced to a final judgment, would preclude the right to injunctive relief. (Code Civ. Proc., ยง 1287.4 [judgment on arbitration award has same force and effect of a judgment in civil action]; Vandenberg v. Superior Court (1999) 21 Cal.4th 815, 831-832 [arbitration award is entitled to res judicata or collateral estoppel effect in subsequent proceedings before the same parties].) Without a stay, there is a threat of inconsistent judgments -- risk of a judgment on Coast Plaza's substantive claims decided in a private arbitration that is incompatible and inconsistent with the determination by the court of Coast Plaza's entitlement to injunctive relief for those same substantive claims.
DISPOSITION
The trial court's order of May 14, 1999 denying Blue Cross' petition to compel arbitration is reversed and the matter is remanded with directions to conduc
Page 1 2 3 4 5 6 7 8 9 10 California Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|