Block

In an action for declaratory relief plaintiff sought a declaration by the court that a clause entitled “Part Seven, C. Acts op Third Parties,” contained in a Group Health Service agreement- issued by defendant California Physicians’ Service, and an order of payment signed by him thereunder are illegal and void as against public policy, and that the sum of $1,714.34 held in trust by his counsel, Everett E. Demler, belongs to him. Defendant cross-complained for declaratory relief, breach of contract and money had and received. The cause was submitted to the trial judge on a stipulation of fact. Plaintiff appeals from the judgment decreeing “Part Seven, C. Acts op Third Parties” to be a valid and legally enforceable clause in the agreement; and ordering that plaintiff take nothing by reason of his complaint and reimburse defendant in the amount of $1,714.34 out of sums collected by him in a personal injury action brought and settled on his behalf by Demler, and that on its cross-complaint defendant recover said amount from Demler.

The following facts are undisputed. California Physicians ’ Service is a nonprofit California corporation. Group Health Service agreement (CPS 516-6730)…