Victoria v. Superior Court

710 P.2d 833, 40 Cal. 3d 734, 222 Cal. Rptr. 1, 1985 Cal. LEXIS 432
CourtCalifornia Supreme Court
DecidedDecember 30, 1985
DocketL.A. 32081
StatusPublished
Cited by139 cases

This text of 710 P.2d 833 (Victoria v. Superior Court) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Victoria v. Superior Court, 710 P.2d 833, 40 Cal. 3d 734, 222 Cal. Rptr. 1, 1985 Cal. LEXIS 432 (Cal. 1985).

Opinions

Opinion

BIRD, C. J.

Does the arbitration provision in a health service agreement, which covers any claim “arising from rendition or failure to render services,” apply to a claim against the health care provider for negligent employment of an orderly accused of sexually assaulting a patient?

I.

Petitioner, Imelda Victoria, was admitted to a hospital owned by real party in interest, Kaiser Foundation Hospitals (hereafter Kaiser), for brain surgery in August of 1984. According to the allegations of petitioner’s complaint, she was repeatedly sexually assaulted, raped and sodomized during her recovery from the surgery by real party in interest, Haynes, a hospital orderly.

Petitioner sued both the alleged perpetrator and Kaiser. Her complaint stated two causes of action against Kaiser, one for the negligent infliction of emotional distress and the other for the negligent selection, employment, retention and supervision of the employee who committed the alleged assaults.1 Specifically, petitioner contends that Kaiser knew that the employee had sexually assaulted female patients on at least two prior occasions.

[738]*738Kaiser answered the complaint and moved to stay the action and compel arbitration. Kaiser argued that the allegations of petitioner’s complaint fell within the scope of an arbitration clause contained in the group medical and hospital service agreement (Agreement) between Kaiser and Southern California Edison Company, the firm through which petitioner became a Kaiser member.2 Respondent superior court granted Kaiser’s motion, stayed the action and ordered that the matter proceed to arbitration. This petition followed.

II.

Petitioner seeks a writ of mandate directing the superior court to set aside its order compelling arbitration and to exercise its jurisdiction to hear the case. She argues that her causes of action against Kaiser are outside the scope of the arbitration clause. She has requested expedited review because, she asserts, her life expectancy is short.

This case requires the court to balance the general policy favoring arbitration against ordinary principles of contract, which require that agreements be interpreted to reflect the intent of the parties. Ambiguities in contract language are to be resolved against the drafter.

The arbitration clause in this contract provides that, “Any claim arising from alleged violation of a legal duty incident to this Agreement shall be submitted to binding arbitration if the claim is asserted: (1) by a Member . . .[;] (2) On account of death, mental disturbance or bodily injury arising from rendition or failure to render services under this Agreement, irrespective of the legal theory upon which the claim is asserted; (3) For monetary damages exceeding the jurisdictional limit of the Small Claims Court; and (4) Against one or more of the following . . .: (a) Health Plan, (b) Hospitals, (c) Medical Group, (d) Any Physician, or (e) Any employee of the foregoing.” (Italics added.)

“ [Arbitration has become an accepted and favored method of resolving disputes [citations], praised by the courts as an expeditious and economical method of relieving overburdened civil calendars. [Citation.]” (Madden v. Kaiser Foundation Hospitals (1976) 17 Cal.3d 699, 706-707 [131 Cal.Rptr. 882, 552 P.2d 1178]; see also Ericksen, Arbuthnot, McCarthy, Kearney & Walsh, Inc. v. 100 Oak Street (1983) 35 Cal.3d 312, 322 [197 Cal.Rptr. 581, 673 P.2d 251] [hereafter Ericksen].) However, [739]*739judicial enthusiasm for alternative methods of dispute resolution must not in all contexts override the rules governing the interpretation of contracts.

Certain basic principles of contract interpretation are applicable. First, “the policy favoring arbitration cannot displace the necessity for a voluntary agreement to arbitrate.” (Wheeler v. St. Joseph Hospital (1976) 63 Cal.App.3d 345, 356 [133 Cal.Rptr. 775, 84 A.L.R.3d 343], italics added; accord Freeman v. State Farm Mut. Auto. Ins. Co. (1975) 14 Cal.3d 473, 481 [121 Cal.Rptr. 477, 535 P.2d 341].) In addition, “[hjowever broad may be the terms of a contract, it extends only to those things concerning which it appears that the parties intended to contract.” (Civ. Code, § 1648, italics added.)

Finally, ambiguities in standard form contracts are to be construed against the drafter. (Baker v. Sadick (1984) 162 Cal.App.3d 618, 625 [208 Cal.Rptr. 676]; Player v. Geo. M. Brewster & Son, Inc. (1971) 18 Cal.App.3d 526, 533 [96 Cal.Rptr. 149]; Civ. Code, § 1654.) This court must apply these basic principles to determine whether the petitioner’s causes of action fall within the scope of the arbitration clause.

Many arbitration provisions between health care providers and patients are governed by Code of Civil Procedure section 1295. Enacted as a part of the Medical Injury Compensation Recovery Act (MICRA), section 1295 provides that any contract for medical services which contains an arbitration provision must include certain specified language alerting the patient to the scope and nature of the arbitration.3 Certain “health care service plans” are [740]*740exempted from these requirements if they comply with alternative statutory notice requirements. (Code Civ. Proc., § 1295, subd. (f).)

Kaiser is an exempt health care service plan. As such, it is not required to utilize the specific language of Code of Civil Procedure section 1295. However, it is required to include in its disclosure forms a statement that the plan utilizes arbitration to settle disputes. (Health & Saf. Code, § 1363, subd. (a)(10).) The plan contracts must also “set forth the type of disputes subject to arbitration, the process to be utilized, and how it is to be initiated.” (Health & Saf. Code, § 1373, subd. (i), italics added.)

Kaiser claims it intended to encompass “everything it does” within the scope of the arbitration clause. It argues that both of petitioner’s causes of action fall within the scope of the arbitration clause and that the parties could not have drafted a clause which more clearly expressed the intent to include such claims.4

Petitioner contends that her causes of action against Kaiser are outside the scope of the arbitration clause. She claims that the boilerplate language drafted by Kaiser is not specific enough to satisfy the statutory requirement. [741]*741Essentially, she argues that a clause purporting to waive the patient’s constitutional right to trial by jury, and her opportunity for appeal and judicial review, should be much more explicit if it is to be given effect.

Specifically, petitioner contends that the language of the arbitration clause calls for a two-step analysis. First, to be covered by the clause, a claim must arise from “a legal duty incident to” the Agreement. Second, it must arise from “the rendition or failure to render services” under the Agreement.

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Cite This Page — Counsel Stack

Bluebook (online)
710 P.2d 833, 40 Cal. 3d 734, 222 Cal. Rptr. 1, 1985 Cal. LEXIS 432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/victoria-v-superior-court-cal-1985.