Premier Medical Management Systems, Inc. v. California Insurance Guarantee Ass'n

163 Cal. App. 4th 550, 77 Cal. Rptr. 3d 695, 2008 Cal. App. LEXIS 809
CourtCalifornia Court of Appeal
DecidedMay 30, 2008
DocketB195889
StatusPublished
Cited by174 cases

This text of 163 Cal. App. 4th 550 (Premier Medical Management Systems, Inc. v. California Insurance Guarantee Ass'n) 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
Premier Medical Management Systems, Inc. v. California Insurance Guarantee Ass'n, 163 Cal. App. 4th 550, 77 Cal. Rptr. 3d 695, 2008 Cal. App. LEXIS 809 (Cal. Ct. App. 2008).

Opinion

Opinion

EPSTEIN, P. J.

— The issue in these consolidated appeals is whether awards of attorney fees were too high. The awards were made to the prevailing defendants on an anti-SLAPP (strategic lawsuit against public participation) special motion to strike pursuant to Code of Civil Procedure section 425.16 (section 425.16). In an earlier published decision, we reversed a trial court order denying the special motion to strike and remanded for an award of fees to the successful defendants. (Premier Medical Management Systems, Inc. v. California Ins. Guarantee Assn. (2006) 136 Cal.App.4th 464 [39 Cal.Rptr.3d 43] (Premier I).) The present appeal is from the decision of the trial court on remand.

Appellants argue the fee awards are excessive, duplicative, and improperly include compensation for matters unrelated to the section 425.16 motion. We find no abuse of discretion on the record presented, and affirm. Since appellants abandoned the appeal as to four respondents, we dismiss the appeal as to those parties.

FACTUAL AND PROCEDURAL SUMMARY

We take portions of this summary from our opinion in Premier I, supra, 136 Cal.App.4th at pages 468-472. The case originally arose in the context of the workers’ compensation system. California Insurance Guarantee Association *554 (CIGA), The Explorer Insurance Company (Explorer), Insurance Company of the West (ICW), and other entities sought a determination by the Workers’ Compensation Appeals Board (WCAB) that Premier Medical Management Systems, Inc., was improperly representing treating physicians in WCAB proceedings. They claimed it was doing so by unlawfully practicing medicine, engaging in illegal fee sharing, illegally referring business, and making improper and excessive charges. (Premier I, supra, 136 Cal.App.4th at p. 469.)

Premier and five affiliated physicians (collectively appellants) responded by filing a civil action against a group of workers’ compensation insurers, employers, and other entities (collectively respondents) 1 alleging that respondents had engaged in anticompetitive activity in a conspiracy to contest, delay, and avoid payment of physicians bills and liens for the treatment of workers’ compensation claimants. The complaint alleged causes of action for violation of the Cartwright Act (Bus. & Prof. Code, § 16720, the state antitrust statute), title 18 United States Code sections 1961, 1962(c) (RICO), Business and Professions Code section 17200, intentional interference with contractual and prospective economic advantage, negligent interference, and abuse of process. (Premier I, supra, 136 Cal.App.4th at pp. 470-471.) Appellants sought $15 million in compensatory damages (subject to statutory trebling), restitution, punitive damages, injunctive relief, costs, and fees. (Id. at p. 471.)

Some of the defendants filed joint demurrers and motions to strike portions of the complaint. Ten of the 21 defendants joined in a special motion to strike the complaint as an anti-SLAPP suit because it was based entirely on defendants’ constitutional right to petition the WCAB. (Premier I, supra, 136 Cal.App.4th at p. 471.) The trial court denied the special motion to strike. (Id. at p. 472.) We reversed, finding the complaint came within section 425.16 because the gravamen of the action arose from the activity of litigating lien claims through the workers’ compensation process. (136 Cal.App.4th at pp. 472-477.)

In the second step of the analysis required under section 425.16, we concluded that appellants were unable to demonstrate that their complaint was both legally sufficient and supported by a sufficient prima facie showing of facts to sustain a favorable judgment if the evidence they submitted was credited. (Premier I, supra, 136 Cal.App.4th at p. 477, citing Navellier v. *555 Sletten (2002) 29 Cal.4th 82, 88-89 [124 Cal.Rptr.2d 530, 52 P.3d 703].) That conclusion was based on the Noerr-Pennington 2 doctrine, which “holds that ‘[tjhose who petition government for redress are generally immune from antitrust liability.’ ” (Premier I, supra, 136 Cal.App.4th at p. 478, quoting Professional Real Estate Investors, Inc. v. Columbia Pictures Industries, Inc. (1993) 508 U.S. 49, 56 [123 L.Ed.2d 611, 113 S.Ct. 1920].) We examined the jurisprudence applying Noerr-Pennington to bar suits based on the defendant’s approach to administrative agencies and the courts. (Premier I, at p. 478.) The immunity has been applied to “ ‘virtually any tort, including unfair competition and interference with contract,’ ” including actions under the Cartwright Act and RICO. (Premier I, supra, 136 Cal.App.4th at p. 478, quoting Ludwig v. Superior Court (1995) 37 Cal.App.4th 8, 21, fn. 17 [43 Cal.Rptr.2d 350].) We concluded defendants had established that their activities “were taken in exercise of their First Amendment right to petition and so fall within the Noerr-Pennington doctrine” and thus established a probability of prevailing on this defense at trial. (Id. at p. 479.) We reversed the order denying the special motion to strike and awarded the moving defendants their costs and fees on appeal. (Id. at p. 480.) A petition for rehearing was denied and appellants’ petition for review by the Supreme Court also was denied. (Ibid.)

On remand, seven motions for attorney fees pursuant to section 425.16, subdivision (c) were filed by the successful moving parties. Appellants opposed the motions, first arguing the trial court should take into account the merits of their underlying lawsuit in fixing fees. They also argued that fees should not be awarded for preparing the fee applications, and that fees should be denied because dismissal of the complaint pursuant to Premier I meant that the insurance company respondents would be able to delay or avoid paying significant amounts of workers’ compensation claims and liens.

Appellants also challenged the sufficiency of the evidence submitted by the Locke Lord Bissell Brook law firm on behalf of CIGA. They argued that the fee requests on behalf of Pacific Secured Equities, Inc., doing business as Intercare Insurance Services (Intercare), ICW and Explorer 3 were duplicative and excessive because CIGA’s counsel took the lead in the trial court and in the appeal. The only evidence submitted in support of the opposition was the transcript of the hearing on the special motion to strike. In their replies, counsel for respondents pointed out that appellants had not challenged the reasonableness of the rates charged nor presented evidence to contradict their declarations and billing records.

*556 At the initial hearing, the trial court granted some fee applications.

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Bluebook (online)
163 Cal. App. 4th 550, 77 Cal. Rptr. 3d 695, 2008 Cal. App. LEXIS 809, Counsel Stack Legal Research, https://law.counselstack.com/opinion/premier-medical-management-systems-inc-v-california-insurance-guarantee-calctapp-2008.