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.