Burton v. Cruise

190 Cal. App. 4th 939, 118 Cal. Rptr. 3d 613, 2010 Cal. App. LEXIS 2070
CourtCalifornia Court of Appeal
DecidedDecember 8, 2010
DocketNo. G041835
StatusPublished
Cited by67 cases

This text of 190 Cal. App. 4th 939 (Burton v. Cruise) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burton v. Cruise, 190 Cal. App. 4th 939, 118 Cal. Rptr. 3d 613, 2010 Cal. App. LEXIS 2070 (Cal. Ct. App. 2010).

Opinion

Opinion

ARONSON, J.

We affirm the trial court’s determination that a patient waived her contractual right to arbitrate a medical malpractice dispute by waiting to pursue arbitration until the virtual eve of trial, long after discovery, including expert discovery, had been completed.

Substantial evidence supports the trial court’s factual determination on waiver, based on our Supreme Court’s multifactored test in St. Agnes Medical Center v. PacifiCare of California (2003) 31 Cal.4th 1187, 1195 [8 Cal.Rptr.3d 517, 82 P.3d 727] (St. Agnes). The physician suffered prejudice by losing whatever time and cost benefits could have been gained through arbitration and by focusing his litigation efforts on a jury trial rather than an arbitration panel. Audiences matter, and the factual record supports a finding of prejudice.

[943]*943I

Factual and Procedural Background

Plaintiff Kirsten Burton consulted with defendant Joseph T. Cruise, a Newport Beach plastic surgeon, regarding a liposuction procedure. In a preprinted agreement, Burton and Cruise agreed to arbitrate “any issue of medical malpractice . . . .” (Capitalization omitted.) The agreement provided that either party could submit an arbitration demand in writing.

In April 2008, Burton sued Cruise for medical malpractice, alleging that he negligently perforated her viscus and small bowel during the liposuction, resulting in contamination of her abdominal wall.1 Despite the arbitration agreement, Burton failed to request an order compelling arbitration or otherwise mention the parties’ right to arbitrate.

In early July 2008, Burton filed a case management statement requesting a jury trial, estimated to last 10 days. While Burton checked a box on the case management form regarding mediation, she failed to check a box on the same form regarding binding arbitration.

The trial court held a case management conference later that month. The court verified that all potential parties, including all potential defendants, were named and served. Rather than seeking arbitration, Burton requested a trial date, which the court set for April 2009.

The parties engaged in discovery during the next six months, including propounding and responding to interrogatories and requests for production of documents and depositions. They exchanged their expert lists before the February 2009 deadline.

On February 20, 2009, Burton’s counsel faxed a letter to defense counsel demanding arbitration under the arbitration agreement, but suggesting that a single, neutral arbitrator conduct the arbitration rather than a panel, as the agreement specified. Defense counsel declined, arguing Burton had waived arbitration.

Burton’s counsel waited until March 11, 2009, to move ex parte for an order shortening time to hear a petition to compel arbitration. The court shortened the time for a hearing to March 17, 2009.

[944]*944In opposition, Cruise argued that Burton waived her contractual right to arbitration. Defense counsel declared that he designated expert witnesses “very specifically with an eye towards presentation in a superior court trial as opposed to a binding arbitration. As a practical and strategic matter, that same panel of expert witnesses would not have been selected for this case had it been known that the case was proceeding in binding arbitration rather than superior court trial before a jury.”

The trial court conducted a hearing on March 17, but took the matter under submission because it had not reviewed Cruise’s opposition. At the hearing, the court expressed doubt that Burton could demand arbitration after participating in the litigation process through the eve of trial: “I think if you availed yourself of the authority of the court in your action, it seems to me that you can’t at the last minute say . . . but now we want to arbitrate it.” The court denied Burton’s arbitration demand by minute order on March 25, 2009, and this appeal followed. (See Code Civ. Proc., § 1294, subd. (a).)2

II

Discussion

A. Governing Principles and Standard of Review

California law favors arbitrations as a relatively quick and cost-effective means to resolve disputes. (Moncharsh v. Heily & Blase (1992) 3 Cal.4th 1, 9 [10 Cal.Rptr.2d 183, 832 P.2d 899].) There is a statutory exception where the “right to compel arbitration has been waived” by the moving party. (§ 1281.2, subd. (a).)

Although the statute speaks in terms of “waiver,” the term is used “ ‘as a shorthand statement for the conclusion that a contractual right to arbitration has been lost.’ ” (St. Agnes, supra, 31 Cal.4th at p. 1195, fn. 4.) This does not require a voluntary relinquishment of a known right; to the contrary, a party may be said to have “waived” its right to arbitrate by an untimely demand, even without intending to give up the remedy. In this context, waiver is more like a forfeiture arising from the nonperformance of a required act. (Platt Pacific, Inc. v. Andelson (1993) 6 Cal.4th 307, 314 [24 Cal.Rptr.2d 597, 862 P.2d 158]; see also Zamora v. Lehman (2010) 186 Cal.App.4th 1, 12, 18 [111 Cal.Rptr.3d 335].)

In St. Agnes, our Supreme Court set forth a multifactor test to assess waiver claims. While waiver is not a mechanical process, and no one factor is [945]*945predominant, the pertinent factors for this appeal are: (1) Did the party seeking arbitration act inconsistently with the right to arbitrate or otherwise substantially invoke the litigation process? (2) Are the parties “well into preparation” of the lawsuit? (3) Is there an imminent trial date? (4) Has the delay affected, misled, or prejudiced the opposing party? (See St. Agnes, supra, 31 Cal.4th at p. 1196.)

Burton dismisses the St. Agnes multifactor test as nothing but “words” which are trumped by “the rule that absent actual prejudice, none of these factors is sufficient on which to base or uphold a finding of waiver of the right to arbitrate.” We disagree.

St. Agnes cautions us to examine each case in context. “[N]o single test delineates the nature of the conduct that will constitute a waiver of arbitration.” (St. Agnes, supra, 31 Cal.4th at p. 1195.) True, the mere filing of a complaint, without more, does not constitute the forfeiture of a right to contractual arbitration: “In California, whether or not litigation results in prejudice also is critical in waiver determinations.” (Id. at p. 1203.)

But does this mean that a litigant may wait until trial is due to commence before demanding arbitration? To the contrary, in Wagner Construction Co. v. Pacific Mechanical Corp. (2007) 41 Cal.4th 19 [58 Cal.Rptr.3d 434, 157 P.3d 1029], the Supreme Court expressly observed that a party’s unreasonable delay in demanding or seeking arbitration, in and of itself, may constitute a waiver of a right to arbitrate.

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Cite This Page — Counsel Stack

Bluebook (online)
190 Cal. App. 4th 939, 118 Cal. Rptr. 3d 613, 2010 Cal. App. LEXIS 2070, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burton-v-cruise-calctapp-2010.