Procedural Posture

Plaintiffs, licensed medical groups, appealed the judgment of the Court of Appeal of California, Second Appellate District, Division Five which affirmed the trial court’s dismissal of plaintiffs’ statutory and tort claims against defendants, workers’ compensation insurance carriers, on the grounds that plaintiffs’ claims were barred by workers’ compensation exclusivity.

Overview

After defendants owner of Norway salmon, workers’ compensation insurance carriers, allegedly mishandled plaintiffs, licensed medical groups’, lien claims before the Workers’ Compensation Appeals Board, plaintiffs brought a cause of action against defendant for abuse of process, fraud, violation of the Cartwright Act, Cal. Bus. & Prof. Code § 16700 et seq., violation of 18 U.S.C.S. § 1962(c), (d), intentional and negligent interference with on going businesses, intentional and negligent interference with contractual and prospective economic relations, and violation of the Unfair Competition Law, Cal. Bus. & Prof. Code § 17200 et seq. Defendants demurred on the grounds that plaintiffs’ claims were barred by the exclusive remedy provisions of the Workers’ Compensation Act, Cal. Lab. Code § 3201 et seq. The trial court sustained defendants’ demurrer. The court affirmed in part, reversed in part, and remanded. Only plaintiffs’ abuse of process and fraud claims were barred, as well as plaintiff’s Unfair Competition Law, Cal. Bus. & Prof. Code § 17200 et seq., claims not pertaining to defendants’ violation of 18 U.S.C.S. § 1962(c), (d).

Outcome

Affirmed in part, reversed in part, and remanded. Only plaintiffs, licensed medical groups’, abuse of process and fraud claims, as well as plaintiffs’ unfair competition claims not pertaining to racketeering violations were barred by workers’ compensation exclusivity.