Breach of Contract

Crowell v. Downey Reg'l Med. Ctr. Hosp. Inc., No. B167785 (Cal. Ct. App. Apr. 29, 2004)

The Court of Appeal in California held that a physician who sued a hospital for breach of contract after the applicable statute of limitations had run was entitled to the addition of an "equitable tolling" period in which to bring his claim. Per the agreement, the physician had sought to compel arbitration when a contract dispute arose. However, other pending legal issues caused a delay that extended the claim beyond the statute of limitations. The court found that the physician had provided adequate notice to the hospital of the claim, and that the hospital would not be prejudiced if the physician was allowed to file suit after the statute of limitations had run. The court went on to find that all but one of the physician's contract claims were without merit, and remanded the case to the trial court for consideration of the physician's final claim.