967 F. Supp. 2d 1332
N.D. Cal.2013Background
- Plaintiff Bipinkumar Naria sues under CMIA for disclosures of medical information.
- Kaiser membership agreement with arbitration clause governs disputes between Kaiser-affiliates and members.
- Kaiser contracted with Healthcare Recoveries to recover payment for plaintiff’s treatment from a third party’s insurer.
- Healthcare Recoveries’ work and Kaiser’s control are documented in a Statement of Work and a June 2013 Kaiser letter.
- This motion to compel arbitration and stay was filed, and the court grants arbitration and stays the action.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of arbitration provision | Arbitration clause procedurally and substantively unconscionable. | Clause is valid and enforceable under California law. | Arbitration provision enforceable; not substantively unconscionable. |
| Scope of arbitration | Disputes over disclosure of medical information excluded from arbitration. | Provision covers claims relating to provision and payment of medical services, including disclosures. | Arbitration encompasses this CMIA claim and related payment/disclosure disputes. |
| Nonsignatories’ ability to compel arbitration | Healthcare Recoveries and Trover are not signatories; cannot compel. | Agency relationship allows nonsignatories to compel arbitration. | Healthcare Recoveries and Trover can compel arbitration via agency relationship with Kaiser. |
Key Cases Cited
- Lifescan, Inc. v. Premier Diabetic Servs., Inc., 363 F.3d 1010 (9th Cir. 2004) (FAA scope and enforcement guidance)
- Simula, Inc. v. Autoliv, Inc., 175 F.3d 716 (9th Cir. 1999) (emphasizes doubt in scope resolved in favor of arbitration)
- Armendariz v. Found. Health Psychcare Servs., Inc., 24 Cal.4th 83 (Cal. 2000) (tests for unconscionability in California arbitration)
- Ting v. AT&T, 319 F.3d 1126 (9th Cir. 2003) (adhesion contract and sliding-scale unconscionability)
- Bridge Fund Capital Corp. v. Fastbucks Franchise Corp., 622 F.3d 996 (9th Cir. 2010) (computes enforceability under unconscionability framework)
- Lawrence v. Walzer & Gabrielson, 207 Cal.App.3d 1501 (Cal. App. 1989) (gauses ejusdem generis to limit arbitration scope)
- Wilmot v. McNabb, 269 F. Supp. 2d 1203 (N.D. Cal. 2003) (agency-based routing of claims to arbitration)