Kumar v. WaeckerKumar v. Waecker
A doctor sued the attorney who represented his patient in a personal injury action, seeking to recover for the medical services he rendered to the patient pursuant to a lien on the settlement
We agree the doctor lacked standing to sue thereby justifying the trial court‘s order granting summary judgment and the entry of judgment against the doctor. But the doctor should have been permitted (either before or after granting summary judgment) to amend the complaint because the proposed amendments were not prejudicial to the attorney‘s case. We reverse the order denying leave to amend the complaint and affirm the judgment against the doctor in his individual capacity.
FACTS AND PROCEDURAL BACKGROUND
I. Facts
A. The collision and personal injury action
In July 2020, Alyssa Vernon was injured in an automobile accident. She retained defendants Mark Waecker and his professional corporation Mark Waecker APC (collectively, Waecker) to represent her in a personal injury action against the driver of the other vehicle.
B. The lien
In September 2020, Dr. Kumar sent Waecker a document titled “Personal Injury Lien,” which provided for “the above provider” to be paid for the medical services rendered to Vernon “from any settlement judgment or verdict” in the personal injury action (“the lien“). The lien is on letterhead listing “Ultimate Pain Management” and “Devindеr S. Kumar MD” at the top. It contains signature lines for both Waecker and Vernon.
Waecker signed and returned the lien to Dr. Kumar‘s office in September 2020. However, Vernon subsequently told Waecker that she preferred Dr. Kumar to continue billing her medical insurance instead of placing a lien on her recovery in the personal injury action.
C. The settlement
Based on Vernon‘s preference, Waecker negotiated a settlement in the personal injury action without relying on any billing records from Dr. Kumar‘s office. In April 2021, thе personal injury action settled for $100,000.
Approximately two months later, Dr. Kumar sent Waecker a version of the lien purportedly signed by Vernon and requested that Waecker pay Vernon‘s medical bills totaling $41,500 from the settlement proceeds. Dr. Kumar also provided claim forms detailing Vernon‘s treatment, each of which lists “Devinder Kumar, MD Inc.” as the “billing provider.”
II. Procedural History
A. The complaint
On October 26, 2022, Dr. Kumar filed a complaint against Waecker asserting causes of action for breach of contract, fraud, breach of fiduciary duty, constructive trust, declaratory relief, and injunctive relief. Each claim was based on the allegations that Waecker failed to pay Dr. Kumar the valuе of Vernon‘s medical services in contravention of the lien. The first paragraph of the complaint defines the plaintiff, “Dr. Devinder Kumar, MD,” as “an individual[] and Doctor” who “brings this action in his professional capacity.”
B. Discovery
Dr. Kumar provided Waecker with copies of Vernon‘s medical bills and records on July 21, 2023. On January 21, 2025—less than a month before the discovery cut-off—Waecker noticed Dr. Kumar‘s deposition. The deposition took place on February 20, 2025, but Dr. Kumar‘s counsel terminated it early to seek a рrotective order after objecting to the questioning of Waecker‘s attorney. Waecker then filed a motion in limine seeking to exclude testimony from Dr. Kumar on several topics that Waecker did not have an opportunity to ask Dr. Kumar about during his deposition. He later withdrew that motion without prejudice.
C. The summary judgment motions
On March 21, 2025 and March 25, 2025, respectively, Waecker and Dr. Kumar filed competing motions for summary judgment. Both рarties argued that the undisputed facts entitled them to judgment as a matter of law. Waecker also argued that Dr. Kumar lacked standing to pursue the claims individually because the medical bills were issued by Dr. Kumar‘s medical corporation, Devinder Kumar, M.D., Inc.
D. The motion for leave to amend the complaint
On April 29, 2025, Dr. Kumar filed a motion for leave to amend his complaint. He sought to make two substantive amendments: (1) to change the plaintiff from “Dr. Devinder Kumar MD” to “Devinder Kumar, M.D., Inc., A Business Entity, and Devinder S. Kumar, A Medical Doctor, Individually” and “[a]mend Paragraph 1” with new proposеd language defining the plaintiff accordingly; and (2) to add a cause of action for conversion based on Waecker “taking possession of the full settlement proceeds without withholding the amount sufficient to pay the [p]laintiffs’ [l]ien, preventing [p]laintiff from having the ability to collect the lien from settlement proceeds, and refusing to pay or negotiate the lien after demand by the [p]laintiff.” He included a declaration from his attorney explaining that the name change amendment “was not made earlier as it was believed that such amendment was unnecessary” until “[d]efendants’ filing a Motion for Summary Adjudication challenging the [p]laintiffs’ name,” and that “[d]uring the course of researching the law on this case,” his attorney learned the facts “already . . . alleged” supported a claim for conversion. He
In opposition, Waecker argued that Dr. Kumar failed to comply with
E. The trial court‘s ruling on the motion for leave to amend the complaint
At the May 23, 2025 hearing on the motion for leave to amend, the trial court noted that it was “a very close call” and asked Waecker “to talk about prejudice to your client, if any.” Waecker responded that it was “extremely prejudicial” because he would “need to take a deposition to ask Dr. Kumar to explain that situation to understand who is the proper plaintiffs, if both or maybe the corporation.”
That day, the trial court denied Dr. Kumar‘s motion for leave to amend his complaint, reasoning that (1) Dr. Kumar‘s motion failed to comply with Rule 3.1324‘s requirements; (2) Dr. Kumar unjustifiably delayed bringing the motion; and (3) leave to amend would “severely prejudice” Waecker beсause “[a]dding a
F. The trial court‘s ruling on the motions for summary judgment
After holding a hearing on both parties’ motions for summary judgment on June 10, 2025, the trial court granted summary judgment in favor of Waecker on June 11, 2025. The trial court analyzed the evidence both parties submitted and found “triable issues as to the substance of [p]laintiff‘s claims,” but “no evidence to support a reasonable inference that [p]laintiff has standing, as аn individual, to pursue claims on behalf of a Devinder Kumar, M.D., Inc., a corporate entity.”
The trial court also reiterated its May 23, 2025 ruling that denial of leave to amend was proper because “[p]laintiff‘s delay in seeking to amend the named [p]laintiff in this action was unreasonable, especially considering the 7/21/2025 trial date, discovery closed 2/17/2025, and [p]laintiff walked out and ended his deposition when asked about how much he accepts on medical lien settlements.”
G. The related complaint
On June 10, 2025, “Devinder Kumar, M.D., Inc.” filed a сomplaint against Waecker in Case Number 25STCV16731, asserting causes of action for breach of contract, fraud, breach of fiduciary duty, constructive trust, and conversion based on the same facts underlying this action. The trial court found that case to be related to the present one on July 21, 2025.
H. The motions for reconsideration
Dr. Kumar moved for reconsideration of the trial court‘s order granting summary judgment on June 13, 2025, and for reconsideration of the trial court‘s order denying leave to amend
I. The judgment and appeal
The trial court entered judgment in favor of Wаecker on August 13, 2025, and Dr. Kumar filed a notice of appeal the same day.
DISCUSSION
I. The Trial Court Properly Granted the Summary Judgment Motion Against Dr. Kumar Based on Lack of Standing
We review a trial court‘s order granting summary judgment de novo. (Aguilar v. Atlantic Richfield Co. (2001) 25 Cal.4th 826, 860.) A trial court properly grants summary judgment if the moving party can establish the action has “no merit” and he is “entitled to a judgment as a matter of law.” (
Here, it is undisputed that Dr. Kumar treated Vernon solely through his medical corporation Devinder Kumar, M.D., Inc. All of the bills he submitted list “Dеvinder Kumar, M.D., Inc.” as the “billing provider,” and the lien underlying each of Dr. Kumar‘s claims is on letterhead for “Ultimate Pain Management,” which is the fictitious name under which Devinder Kumar, M.D., Inc. does business. Accordingly, it is Devinder Kumar, M.D., Inc. who has standing to enforce the lien and recover for the services rendered, not Dr. Kumar individually. The trial court properly granted summary judgment against Dr. Kumar on this basis.
Dr. Kumar offers three arguments in support of his claim that the trial court erred in granting summary judgment.
First, Dr. Kumar argues that because the lien‘s letterhead lists “Devindеr S. Kumar MD” under “Ultimate Pain Management,” there is a triable issue of fact as to whether he individually has standing to enforce the lien, and the trial court‘s conclusion that he did not was a result of “improperly weigh[ing the] evidence.” This argument lacks merit. It is undisputed that Dr. Kumar‘s name is listed under “Ultimate Pain Management” on the lien, but it is also undisputed that he was the only doctor who provided care at Ultimate Pain Management. The only reasonable conclusion supported by the evidence is that Dr.
Second, and for the first time in his reply brief, Dr. Kumar raises the issue of judicial estoppel. He argues that because Waecker filed a demurrer in the subsequent, separate action brought by Devinder Kumar, M.D., Inc., arguing for application of res judicata based on the outcome of the present action and the premise that both aсtions involve “the same parties,” Waecker is judicially estopped from arguing Dr. Kumar lacked standing here. We need not consider this argument since Dr. Kumar raised it for the first time in his reply brief. (United Grand Corp. v. Malibu Hillbillies, LLC (2019) 36 Cal.App.5th 142, 158.) In any event, the argument lacks merit because judicial estoppel “prevents a party from asserting a position in a judicial proceeding that is contrary or inconsistent with a position previously asserted in a prior proceeding” (International Engine Parts, Inc. v. Feddersen & Co. (1998) 64 Cal.App.4th 345, 350, italics added)—not to invalidate a trial court‘s ruling based on a positiоn taken in a subsequent lawsuit.1
II. The Trial Court Abusеd Its Discretion by Denying Leave to Amend
Although the trial court properly concluded Dr. Kumar lacked standing, it abused its discretion by denying leave to amend the complaint.2
A. Legal standard
“The court may, in furtherance of justice, and on any terms as may be proper, allow a party to amend any pleading or
Where a plaintiff who lacks standing seeks to amend the complaint to add a plaintiff who has standing, courts “liberally” allow such amendments, as long as doing so does not “‘give rise to a wholly distinct and different legal obligation against the defendant.‘” (Foundation for Taxpayer & Consumer Rights v. Nextel Communications, Inc. (2006) 143 Cal.App.4th 131, 136; Branick v. Downey Savings & Loan Assn. (2006) 39 Cal.4th 235, 243 (Branick).) Where the defendants were “fully apprised since the filing of the original complaint of the facts which are relied upon to state a right to relief against them,” permitting amendment to substitute a plaintiff without standing with a plaintiff who has standing is appropriate. (Klopstock, supra, 17 Cal.2d at p. 21.) Indeed, denial of leave to amend in such circumstances is an abuse of discretion. (Foundation for Taxpayer & Consumer Rights, at p. 136 [holding it was an abuse of discretion to deny leave to amend to add a plaintiff with standing after Proposition 64 deprived the existing plaintiffs of standing where the new plaintiff “allege[d] the same misconduct originally alleged“].)
In sum, it is an abuse of discretion to deny leave to amend “where the opposing party was not misled or prejudiced by the amendment.” (Kittredge Sports Co. v. Superior Court (1989) 213 Cal.App.3d 1045, 1048 (Kittredge Sports).)
B. Analysis
Here, the trial court abused its discretion by denying Dr. Kumar the opportunity to amend his complaint to add Devinder Kumar, M.D., Inc. as a plaintiff and to add a cause of action for
First, the trial court reasoned that allowing leave to amend would “severely prejudice” Waecker because “[a]dding a new claim and a new [p]laintiff would require [d]efendants to conduct discovery and bring a new summary judgment motion.” However, the new plaintiff and new cause of action sought to be added do not introduce any new issues into the case that would require additional discovery or a new summary judgment motion. Waecker does not point to any particular witness, testimony, or document that would be necessary to counter either the inclusion of Devinder Kumar, M.D., Inc. as a plaintiff or the cause of action
On aрpeal, Waecker merely argues that he is “entitled to pursue discovery and determine if the new entity was in compliance with corporate requirements.” But the corporation‘s compliance or noncompliance with statutory requirements would not alter Waecker‘s duty to the corporation pursuant to the lien. (See California Physicians’ Service v. Aoki Diabetes Research Institute (2008) 163 Cal.App.4th 1506, 1514-1517 [“illegality in . . . form of business organization does not negate . . . contractual obligation“].) And as for thе argument that the amendments required trial to be delayed for another round of summary judgment motions, the trial court already found there to be triable issues of fact on the merits of the claims. Requiring Waecker to defend against those claims at trial against Devinder Kumar, M.D., Inc. rather than against Dr. Kumar individually would not have been prejudicial to Waecker‘s case.
Third, the trial court reasoned that Dr. Kumar‘s motion did not comply with Rule 3.1324‘s requirements that the motion state the “page, paragraph, and line number” where the amendments are sought to be added and that the supporting declaration specify “[w]hen the facts giving rise to the amended allegations were discovered” and “why the request for amendment was not made earlier.” (
In sum, because Waecker would not be prejudiced or misled by an amended complaint substituting the proper plaintiff and adding a legal theory supported by the same set of facts originally alleged, the trial court erred in denying leave to amend.
DISPOSITION
The order denying leave to amend is reversed. The judgment against Devinder Kumar, as an individual, is affirmed. The case is remanded to the trial court for further proceedings consistent with this opinion. Each party is to bear their own costs on appeal.
NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS.
KUMAR, J.*
We concur:
BAKER, Acting P. J.
KIM (D.), J.