Hailey

Plaintiffs Cindy and Steve Hailey challenge a judgment entered after the trial court (1) sustained demurrers to their cause of action for intentional infliction of emotional distress without leave to amend, (2) granted summary judgment in favor of defendant California Physicians’ Service, doing business as Blue Shield of California (Blue Shield) on the Haileys’ claims for breach of contract and breach of the covenant of good faith and fair dealing, and (3) awarded $104,194.12 in damages to Blue Shield on its cross-complaint for rescission of the health services contract it had previously agreed to provide the Haileys.

The Haileys contend, inter alia, Health and Safety Code section 1389.3 precludes Blue Shield from rescinding unless it can prove the Haileys willfully misrepresented the condition of Steve’s health at the time they applied for coverage. Because evidence of whether the Haileys’ misrepresentations were willful presents a triable issue of fact, they contend the trial court erred in granting summary judgment. They also contend Blue Shield’s rescission of their health services plan constituted extreme and outrageous behavior sufficient to state a cause of action…