Preston v. Kaiser Foundation Hospitals

126 Cal. App. 3d 402, 178 Cal. Rptr. 882, 1981 Cal. App. LEXIS 2430
CourtCalifornia Court of Appeal
DecidedDecember 4, 1981
DocketCiv. 62670
StatusPublished
Cited by23 cases

This text of 126 Cal. App. 3d 402 (Preston v. Kaiser Foundation Hospitals) 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
Preston v. Kaiser Foundation Hospitals, 126 Cal. App. 3d 402, 178 Cal. Rptr. 882, 1981 Cal. App. LEXIS 2430 (Cal. Ct. App. 1981).

Opinions

Opinion

COMPTON, J.

Plaintiffs in an action for a wrongful death arising out of alleged medical malpractice appeal from a judgment of dismissal entered pursuant to Code of Civil Procedure section 583, for failure to bring the action to trial within five years. We reverse and remand.

At issue is the application of Code of Civil Procedure section 5831 to a court-ordered arbitration proceedings based on a contractual provision in a prepaid health care plan.

William Preston is a member of the Oil, Chemical and Atomic Workers Union and, as such, received hospital and medical benefits for himself and his family pursuant to a contract between the union and the Kaiser Foundation Health Plan (Kaiser). Decedent was Preston’s son who died after receiving treatment from Kaiser. The other plaintiffs are Preston’s wife and children.

[406]*406The master contract provides, inter alia, that any claim for malpractice arising out of the rendition of or failure to render services under the contract shall be decided by arbitration.

Further, the contract provides that a claim is waived and forever barred if . (3) the Claimant fails to pursue the arbitration claim with reasonable diligence.”

The chronology of critical events in this case is as follows:

January 14, 1975—complaint filed in superior court; May 22, 1975— defendant notified plaintiffs of duty to arbitrate; February 9, 1976— defendant moved to stay the action and compel arbitration; December 6, 1976—motion to stay the action and compel arbitration granted;2 December 8, 1976—defendant selected arbitrator; October 9, 1977— plaintiffs selected arbitrator; January 14, 1980—five years elapsed from the filing of the complaint; December 8, 1980—action dismissed.

The third and neutral arbitrator, as provided for under the arbitration scheme, was never selected. The effect of the dismissal was to vacate the order for arbitration and terminate the arbitration itself.

Plaintiffs contend that once having ordered arbitration, the superior court was without jurisdiction to dismiss the arbitration proceedings, that Code of Civil Procedure section 583 is simply inapplicable to arbitration proceedings based on a private contract and in any event the time during which the jurisdiction of the court to try the action was suspended should not be included in computing the time period, citing Code of Civil Procedure section 583, subdivision (f).3 Plaintiffs argue that the determination of whether plaintiffs have proceeded with reasonable diligence is solely within the jurisdiction of the arbitration panel.

[407]*407At the outset, we observe that plaintiffs themselves, first, directly invoked the jurisdiction of the superior court when they filed their action and, secondly, and indirectly, when they refused to arbitrate thus requiring defendants to obtain a court order therefor.

Once the court ordered arbitration it was required by Code of Civil Procedure section 1281.4 to stay the proceedings until arbitration was completed or until “such earlier time as the court specifies.” The court retained jurisdiction to determine any subsequent petition involving the same controversy. (Code Civ. Proc., § 1292.6.)

We read the provision of Code of Civil Procedure sections 1281.4 and 1292.6 in combination as investing a court, which has ordered a matter to be arbitrated, with the power on the one hand to entertain a petition by the plaintiff for judicial assistance in moving the arbitration forward where the matter is foundering for reasons beyond plaintiffs’ control, or on the other hand, to entertain a motion by defendants to dismiss the arbitration where plaintiffs have failed to exercise reasonable diligence in moving the dispute to a conclusion.

Having concluded that the superior court was not ousted of jurisdiction by the order to arbitrate, we turn to the role of Code of Civil Procedure section 583 as applied to arbitration proceedings.

The policy of our law is to require a plaintiff to expedite the resolution of his or her claim and courts should not enforce claims unless the parties claiming them act in a timely fashion. (Martin v. Cook (1977) 68 Cal.App.3d 799 [137 Cal.Rptr. 434]; Lockhart-Mummery v. Kaiser Foundation Hospitals (1980) 103 Cal.App.3d 891 [163 Cal.Rptr. 325].) Code of Civil Procedure section 583 is a codification of that policy and simply declares that two years is generally a reasonable time to bring a case to trial and that a delay of five years raises a strong presumption that a plaintiff has failed to exercise reasonable diligence.

The policy underlying Code of Civil Procedure section 583 is valid notwithstanding that the parties have, by contract, opted for a forum other than the courts.

If, as plaintiffs contend, there was difficulty in forming the arbitration panel, or that defendants were “dragging their feet” in fulfilling [408]*408their obligations under the contract, plaintiffs could have petitioned the superior court for assistance in expediting the arbitration proceedings, even to the point of asking the superior court to appoint a neutral arbitrator. (Code Civ. Proc. § 1281.6.)

Lockhart-Mummery v. Kaiser Foundation Hospitals, supra, 103 Cal.App.3d 891, a case involving arbitration pursuant to the identical contract involved here, is the only reported case dealing with this issue which has come to our attention. We find the rationale of that case to be logical and persuasive.

It was there stated at page 896, “Where some standard must be set up to prevent matters from maundering about for unlimited periods, surely the time-tested series of limitations (contained in the Code Civ. Proc.) prescribed by the Legislature for lawsuits, are well founded in common sense and practicality and should be applied in arbitration proceedings.”

The Lockhart court further held that the entire period from the date of the filing of the complaint should be the “measuring rod and, if in excess of five years, the complaint should be dismissed ...” (Ibid, at p. 896.)

While we agree that Code of Civil Procedure section 583 should provide a measuring rod, our opinion is that the real test is “reasonable diligence” as provided in the contract. We are of the further opinion that in the context of contractually based arbitration proceedings, the above quoted language from Lockhart-Mummery, supra, that an arbitration should be dismissed after five years from the filing of the complaint is unnecessarily broad.

Case law has developed a number of exceptions to Code of Civil Procedure section 583, which serve to ameliorate the harshness of a strict application of the five-year period. One of those exceptions is where it is impossible or impractical to bring an action to trial. In that event, a so-called “island of time” may be carved out of the five-year period. (See Stella v. Great Western Sav. & Loan Assn. (1970) 13 Cal.App.3d 732 [91 Cal.Rptr. 771].)

In importing the concept and limits of Code of Civil Procedure section 583 into the test of reasonable diligence in bringing a claim to [409]*409resolution by arbitration, we must also import the judicially created exceptions.

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

Related

Voit v. Chaudhry CA6
California Court of Appeal, 2024
Lew-Williams v. Petrosian
California Court of Appeal, 2024
Lerner v. Masterson CA2/5
California Court of Appeal, 2021
Optimal Markets, Inc. v. Salant
221 Cal. App. 4th 912 (California Court of Appeal, 2013)
Bosworth v. Whitmore
37 Cal. Rptr. 3d 560 (California Court of Appeal, 2006)
DIAL 800 v. Fesbinder
12 Cal. Rptr. 3d 711 (California Court of Appeal, 2004)
Finley v. Saturn of Roseville
12 Cal. Rptr. 3d 561 (California Court of Appeal, 2004)
Titan/Value Equities Grp., Inc. v. Superior Court of San Diego Cty.
29 Cal. App. 4th 482 (California Court of Appeal, 1994)
Brock v. Kaiser Foundation Hospitals
10 Cal. App. 4th 1790 (California Court of Appeal, 1992)
Nanfito v. Superior Court
2 Cal. App. 4th 315 (California Court of Appeal, 1991)
Porreco v. Red Top RV Center
216 Cal. App. 3d 113 (California Court of Appeal, 1989)
Kuzmanoff v. Kron
207 Cal. App. Supp. 3d 1 (Appellate Division of the Superior Court of California, 1988)
Boutwell v. Kaiser Foundation Health Plan
206 Cal. App. 3d 1361 (California Court of Appeal, 1988)
Byerly v. Sale
204 Cal. App. 3d 1312 (California Court of Appeal, 1988)
Gainey v. Occidental Land Research
186 Cal. App. 3d 1051 (California Court of Appeal, 1986)
California Teachers Assn. v. Governing Board
161 Cal. App. 3d 393 (California Court of Appeal, 1984)
Moran v. Superior Court
673 P.2d 216 (California Supreme Court, 1983)
Carpenters Southern California Administrative Corp. v. Surety Co.
145 Cal. App. 3d 245 (California Court of Appeal, 1983)
Westinghouse Electric Corp. v. Superior Court
143 Cal. App. 3d 95 (California Court of Appeal, 1983)
Young v. Ross-Loos Medical Group, Inc.
135 Cal. App. 3d 669 (California Court of Appeal, 1982)

Cite This Page — Counsel Stack

Bluebook (online)
126 Cal. App. 3d 402, 178 Cal. Rptr. 882, 1981 Cal. App. LEXIS 2430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/preston-v-kaiser-foundation-hospitals-calctapp-1981.