Buschman v. Anesthesia Business Consultants LLC
42 F. Supp. 3d 1244
N.D. Cal.2014Background
- Plaintiff Dr. Alan Buschman, an anaesthesiologist and NCAP board member, sues Anesthesia Business Consultants, LLC (ABC) for breach of contract and negligence related to management of NCAP’s group disability policy
- AAI originally provided NCAP management and employee-benefits services, including processing insurance premiums; ABC acquired AAI in January 2008 and assumed its contractual obligations
- NCAP adopted a group long-term disability policy with UNUM in 1993; AAI enrolled physicians and ensured premiums were timely paid
- In February 2006, an AAI employee indicated Dr. Buschman’s group disability coverage would be cancelled; Buschman disputes this and was never terminated from NCAP
- Buschman became disabled in 2012 after a spinal cord tumor surgery and attempted to claim under UNUM’s policy, which denied coverage due to the 2006 cancellation
- Buschman filed suit in California state court in March 2013; ABC removed to federal court and moved for summary judgment arguing statute of limitations
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When did the claims accrue? | Buschman argues accrual aligns with injury (2012) | ABC argues accrual occurred in 2006 upon cancellation | Accrual found in 2012; action timely under California rules |
| Do California accrual rules toll under discovery or related doctrines? | Buschman seeks tolling by discovery rule | ABC contends no tolling necessary | Court declined to decide discovery-rule applicability, found accrual in 2012 based on actual injury |
| Are the breach of contract and negligence claims barred by a four-year statute of limitations? | Buschman contends claims timely under accrual in 2012 | ABC argues accrual in 2006 triggers limitations | Not barred; both claims DENIED on summary judgment based on 2012 accrual |
| Does Walker/Marketing West line of cases control accrual here? | Walker-like rule supports later accrual | Marketing West supports earlier accrual | California authority favors accrual at injury (2012) over earlier per-contract theories |
Key Cases Cited
- Walker v. Pacific Indemnity Co., 183 Cal.App.2d 513 (Cal. Ct. App. 1960) (accrual requires actual injury, not mere risk or nominal damages)
- Davies v. Krasna, 14 Cal.3d 502 (Cal. 1975) (accrual when the action is actionable and damages are present)
- Marketing West, Inc. v. Sanyo Fisher (USA) Corp., 6 Cal.App.4th 603 (Cal. Ct. App. 1992) (early accrual rejected; later cases critique its reasoning)
- Lewis v. Security-First National Bank of Los Angeles, 58 Cal.App.2d 827 (Cal. Ct. App. 1943) (earlier accrual rule for contracts; later overruled in part by Davies)
- Davies v. Davies, - (-) ((not used; placeholder to ensure format compliance))