Monarch Healthcare v. Superior Court

93 Cal. Rptr. 2d 619, 78 Cal. App. 4th 1282
California Court of Appeal·Decided March 13, 2000·No. G025877·Published·Cited by 23 cases

Opinion

93 Cal.Rptr.2d 619 (2000)
78 Cal.App.4th 1282

MONARCH HEALTHCARE, Petitioner,
v.
The SUPERIOR COURT of Orange County, Respondent;
Andrew Cassidenti, Real Party in Interest.

No. G025877.

Court of Appeal, Fourth District, Division Three.

March 13, 2000.

*621 Sedgwick, Detert, Moran & Arnold, David Humiston, Robert C. Bohner, Los Angeles, Hall R. Marston, Santa Monica, and Douglas J. Collodel, Los Angeles, for Petitioner.

No appearance for Respondent.

Pinto & Dubia, Christian F. Dubia, Jr. and Laura P. Couch, Irvine, for Real Party in Interest.

*620 OPINION

CROSBY, J.

The discovery rules do not discriminate against nonparty deponents. They need not scramble to retain a lawyer to file a motion to quash in order to challenge "records only" discovery requests that seek privileged information. It is sufficient to simply object.

I

Andrew Cassidenti, the head of an obstetrical medical practice group, sued Brian Koperek and other doctors for unfairly competing to secure a managed care contract from Monarch Healthcare covering some 100,000 Orange County residents. Koperek broke away from Cassidenti in 1995 and allegedly used confidential information to underbid him.

Cassidenti did not initially name Monarch as a defendant. Instead, in October 1998, he served a "records only" deposition subpoena on Monarch's custodian of records as a nonparty witness. (Code Civ. Proc., § 2020, subd. (d).) Cassidenti sought all documents relating to Monarch's negotiations with Koperek and with himself.

Monarch did not file a motion to quash. In December 1998, it produced some, but not all, of the documents, raising trade *622 secrets and privacy objections. Discovery was put on hold for six months pending a dispute regarding mandatory arbitration.

Monarch was named as a defendant in the third amended complaint and filed its answer in June 1999. That same month Cassidenti moved to compel production. Monarch opposed the motion and suggested an in camera inspection because the discovery sought "sensitive business strategy, financial planning, business operations, and technical information which has no direct bearing on Plaintiffs contention [regarding] breach of fiduciary duty by [ ] Koperek or by conduct purportedly consisting of unfair business practices."

At the hearing the trial court on its own accord announced that Monarch, as a nonparty at the time of the discovery request, could only object via a motion to quash: "I spent an hour and a half because neither one of you briefed the issue.... I spent an hour and a half looking for it. It isn't there. This code section requires you to file a motion to quash and you did not do that.... So none of this was preserved.... But it is as if your client didn't take any action, just hauled off and sent a letter saying sorry. But that is not what the code says." The court gave Monarch 30 days to produce the requested documents, "enough time to take a writ if you want to."

II

Monarch initially claims the court lacked jurisdiction to grant the motion to compel on grounds not stated in the notice of motion or moving papers. According to Monarch, "By going beyond those issues, and introducing a new and theretofore unconsidered ground in ruling on the motion, the [court] transgressed the boundaries of its power...."

We do not accept Monarch's absolute rule. Notwithstanding the parties' express or tacit agreement, the court had a responsibility to act in accordance with the statutory procedures set out by the Legislature. (People v. Mendez (1991) 234 Cal. App.3d 1773, 1782-1783, 286 Cal.Rptr. 216 ["`waiver of procedural requirements may not be permitted when the allowance of a deviation would lead to confusion in the processing of other cases by other litigants'"]; People v. Silva (1981) 114 Cal. App.3d 538, 549, 170 Cal.Rptr. 713 ["Where a statute requires a court to follow a particular procedure, an act beyond those limits is in excess of the court's jurisdiction."].) Parties cannot stipulate to circumvent a legislatively designated code section as the exclusive statutory vehicle. (Gilberd v. AC Transit (1995) 32 Cal. App.4th 1494, 1501, 38 Cal.Rptr.2d 626.) The court would have been derelict in its duty had it put aside its disquiet regarding "what the code says" and allowed the litigants to freely rewrite the discovery statutes.

However, fundamental principles of due process also call for those with an interest in the matter to have notice and the opportunity to be heard, so that the ensuing order does not issue like a "bolt from the blue out of the trial judge's chambers." (Campisi v. Superior Court (1993) 17 Cal.App.4th 1833, 1839, 22 Cal.Rptr.2d 335; see Tokio Marine & Fire Ins. Corp. v. Western Pacific Roofing Co. (1999) 75 Cal.App.4th 110, 121, 89 Cal.Rptr.2d 1 ["`Notice and a chance to be heard are essential components to the trial court's jurisdiction and for due process.'"].) Monarch should have been given the opportunity to brief the new issue raised by the trial court at the hearing. (Alvak Enterprises v. Phillips (1959) 167 Cal.App.2d 69, 334 P.2d 148 [affidavit filed with court after submission, without notice to opposing party, cannot be considered in support of motion]; see also Mediterranean Construction Co. v. State Farm Fire & Casualty Co. (1998) 66 Cal.App.4th 257, 264, 77 Cal. Rptr.2d 781 ["Given these 12th-hour circumstances, [the opposing party] was entitled to orally move at the hearing for a postponement to give it sufficient time to respond."].) Taking an example from the *623 appellate procedure of Government Code section 68081, a good practice would be for law-and-motion judges to give parties advance notice of any "issue which was not proposed or briefed by any party to the proceeding," thereby allowing them to speak directly at oral argument to the court's concerns and, if desired, to file a supplemental memorandum of points and authorities before or after the hearing.[1]

We do not consider the matter further, however, since Monarch has failed to preserve it. The judge advised the parties at the hearing of his view that nonparties were required to file a motion to quash. He listened to Monarch's hastily-formulated arguments, but was unpersuaded. Monarch asked for a stay of the order "so we can decide if we're going to take a writ," but did not seek a continuance or permission to file a supplemental brief. Neither did it file a motion to reconsider in order to address the "different circumstance" of the court's sua sponte injection of the motion to quash issue. (Code Civ. Proc., § 1008; cf. Gov.Code, § 68081.) The issue of inadequate notice was therefore waived. (Carlton v. Quint (2000) 77 Cal.App.4th 690, 698, 91 Cal. Rptr.2d 844 [opposing party cannot object to untimely notice unless counsel raises an objection at the hearing, explains the prejudice, and requests a continuance "so that a proper response to the motion may be filed"]; see also Campisi v. Superior Court, supra, 17 Cal.App.4th 1833, 1839, 22 Cal.Rptr.2d 335 [party "not only failed to make an objection that he had insufficient time to respond, but he failed to request a continuance for further argument or briefing"]; Coy v. County of Los Angeles (1991) 235 Cal.App.3d 1077, 1084, fn. 4, 1 Cal. Rptr.2d 215 [failure to object to inadmissible documents in opposition papers].)

III

We now turn to the merits.

Free access — add to your briefcase to read the full text and ask questions with AI

Monarch Healthcare v. Superior Court, 93 Cal. Rptr. 2d 619, 78 Cal. App. 4th 1282 (Cal. Ct. App. 2000).

93 Cal. Rptr. 2d 619 (Monarch Healthcare v. Superior Court) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

He v. University of San Diego CA4/1
California Court of Appeal, 2025
Reynolds v. Bacon CA2/1
California Court of Appeal, 2025
Alston v. McCormick Barstow CA5
California Court of Appeal, 2022
Vista Charters v. Airmotive Specialties CA6
California Court of Appeal, 2022
People v. The North River Ins. Co.
California Court of Appeal, 2022
Marriage of Orr and Traina CA6
California Court of Appeal, 2021
Board of Registered Nursing v. Super. Ct.
California Court of Appeal, 2021
Judge v. Superior Court CA2/7
California Court of Appeal, 2016
Ontiveros v. Constable
California Court of Appeal, 2016
Ontiveros v. Constable CA4/1
245 Cal. App. 4th 686 (California Court of Appeal, 2016)
Marriage of Serio CA2/4
California Court of Appeal, 2013
Soco West v. Cal. EPA CA4/3
California Court of Appeal, 2013
Magana Cathcart McCarthy v. CB Richard Ellis, Inc.
174 Cal. App. 4th 106 (California Court of Appeal, 2009)
UNZIPPED APPAREL, LLC v. Bader
67 Cal. Rptr. 3d 111 (California Court of Appeal, 2007)
Catholic Mutual Relief Society v. Superior Court
165 P.3d 154 (California Supreme Court, 2007)
Kollander Construction, Inc. v. Superior Court
119 Cal. Rptr. 2d 614 (California Court of Appeal, 2002)
In re Rose
266 B.R. 192 (N.D. California, 2001)
Titmas v. Superior Court
104 Cal. Rptr. 2d 803 (California Court of Appeal, 2001)