Miles v. Sedgwick Claims Management Services CA2/3

CourtCalifornia Court of Appeal
DecidedApril 22, 2022
DocketB311520
StatusUnpublished

This text of Miles v. Sedgwick Claims Management Services CA2/3 (Miles v. Sedgwick Claims Management Services CA2/3) 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
Miles v. Sedgwick Claims Management Services CA2/3, (Cal. Ct. App. 2022).

Opinion

Filed 4/22/22 Miles v. Sedgwick Claims Management Services CA2/3

NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS

California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(a). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115(a).

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION THREE

ANDREW JOHN MILES, B311520

Plaintiff and Appellant, Los Angeles County Super. Ct. No. v. 19STCV09427 SEDGWICK CLAIMS MANAGEMENT SERVICES, INC., et al.,

Defendants and Respondents.

APPEAL from a judgment of the Superior Court of Los Angeles County, Jon R. Takasugi, Judge. Affirmed. Blair & Ramirez, Oscar Ramirez, Matthew P. Blair and Kirill Lavinski for Plaintiff and Appellant. Davis Wright Tremaine, Kelli L. Sager, Dan Laidman and Sarah Burns for Defendant and Respondent Sedgwick Claims Management Services, Inc. Locke Lord, David A. Solitro and Steven T. Whitmer for Defendant and Respondent California Insurance Guarantee Association. _______________________________________

INTRODUCTION

This is a defamation action related to a workers’ compensation case. Plaintiff and appellant Andrew John Miles (plaintiff) is a chiropractor who treated an injured worker. Defendants and respondents are California Insurance Guarantee Association (CIGA) and Sedgwick Claims Management Services, Inc. (Sedgwick) (collectively, defendants), the workers’ compensation insurer1 and third-party claims administrator, respectively. Plaintiff sued CIGA and Sedgwick for defamation after Sedgwick sent two letters to the injured worker (as well as counsel for the worker and for CIGA) falsely stating that plaintiff had been indicted for fraud or misuse of Medicare, Medi-Cal, or the workers’ compensation system. Defendants admitted the statements about plaintiff’s indictment were false but asserted the statements were privileged. Defendants moved for summary judgment under Civil Code2 section 47, subdivision (c) (section 47(c)), which extends a conditional privilege against defamation to statements made without malice on subjects of mutual interest. Here, defendants

1 CIGA is an association created by California law that is responsible for paying a portion of the insurance claims from companies that have become insolvent. 2 All undesignated statutory references are to the Civil Code.

2 argued, the letters related to a matter of common interest, namely, ensuring that medical treatment provided to the injured worker would be covered under the workers’ compensation insurance policy. Further, defendants explained, plaintiff’s name inadvertently appeared in the letters due to a miscommunication between two Sedgwick employees. In response, plaintiff argued that the letters did not relate to any common interest because the senders and recipients were in an adversarial posture and, further, that Sedgwick’s actions after it was alerted to the error created a triable issue of material fact as to whether the employees acted with a reckless disregard of plaintiff’s rights. The court agreed with defendants and granted their motions for summary judgment. We affirm.

FACTS AND PROCEDURAL BACKGROUND

1. General Background An injured worker (the worker) filed a workers’ compensation claim in April 2015. After the employer’s workers’ compensation carrier became insolvent, CIGA, an association created under state law, became responsible for paying the injured worker’s claim. Sedgwick is a third-party claims administrator for CIGA and handled the worker’s claim. Plaintiff is a chiropractor who treated the injured worker. The worker also initiated litigation in 2015 and was represented in that litigation by Jacobson & Associates (worker’s counsel). CIGA was represented in that litigation by Floyd Skeren Manukian Langevin, LLP (defense counsel). 2. The Indictment Letter Sedgwick claims examiner D. Russ was assigned to handle the worker’s claim. When she reviewed the claim file, Russ

3 spotted two issues that needed to be resolved. First, Russ noted that plaintiff was identified as the worker’s primary treating physician. But under Labor Code section 4600, a chiropractor may only serve as a primary treating physician under limited circumstances. Accordingly, Russ prepared a computerized diary entry3 that instructed claims assistant S. Couch to send a letter (Labor Code letter) to the worker letting him know that plaintiff could not be his primary treating physician and he should select a different provider to fill that role. The diary entry specifically identified plaintiff as the subject of the letter. Second, Russ learned that one of the worker’s other medical providers, Dr. Rosen, was no longer an approved medical provider for CIGA claims because the Department of Industrial Relations had included Dr. Rosen on a list of medical providers who had been indicted for fraud or abuse of Medicare, Medi-Cal, or the workers’ compensation system. After Russ reviewed the Department of Industrial Relations website, she created a computerized diary entry instructing Couch to send several form letters to the worker, including one notifying the worker of the indictment issue (indictment letter) and another instructing him to select a new provider (follow-up letter). Although Russ intended for the indictment letter to refer to Dr. Rosen, the diary entry she created did not mention Dr. Rosen by name or otherwise identify the provider at issue. Dr. Rosen and plaintiff shared an office suite. Couch received the two diary entries created by Russ and assumed both entries related to plaintiff. Accordingly, she

3 Russ used computerized entries, called “diary entries,” to assign tasks to a claims assistant for handling.

4 prepared the indictment letter and a follow-up letter (collectively, the two false letters) stating incorrectly that plaintiff (not Dr. Rosen) was listed on the website of the Department of Industrial Relations as a provider who had been indicted for fraud or abuse of Medicare, Medi-Cal, or the workers’ compensation system and that the worker would need to choose a new medical provider. Couch believed the information contained in the two false letters was correct when she prepared and sent them. Couch sent the two false letters to the worker with copies to the worker’s counsel, defense counsel, and plaintiff. Couch also prepared the Labor Code letter and sent it to the same recipients. All these letters were dated March 30, 2018. Plaintiff received a copy of the indictment letter.4 On April 10, 2018, plaintiff called Russ to discuss the error in the indictment letter. Russ and Couch took several actions later that day to correct the mistake. They attempted to fax plaintiff a letter of apology, but the fax number they used was incorrect. Russ also attempted to call worker’s counsel to correct the information in the two false letters. When Russ was unable to reach worker’s counsel, she called defense counsel and asked the firm to convey the correct information to worker’s counsel. Finally, Russ directed Couch to prepare and send a revised indictment letter and revised follow-up letter correctly naming Dr. Rosen as the provider listed on the website of the Department of Industrial Relations. These letters were dated April 10, 2018.

4Plaintiff testified that he received the indictment letter from the worker, not Sedgwick.

5 3. The Complaint In March 2019, plaintiff filed the present action against Sedgwick and CIGA.

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Miles v. Sedgwick Claims Management Services CA2/3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miles-v-sedgwick-claims-management-services-ca23-calctapp-2022.