Heritage Provider Network, Inc. v. Superior Court

Following failed negotiations regarding the potential purchase of Eastland Medical Group, Inc. (Eastland), by Heritage Provider Network, Inc. (Heritage), Eastland sued Heritage, two related medical groups, Regal Medical Group, Inc. (Regal), and West Covina Plan IPA, Inc. (Covina), and four individual physicians who had terminated their relationship with Eastland and entered into agreements with Heritage. Eastland’s complaint alleged causes of action for breach of contract against the medical groups and the doctors and for inducing breach of contract and improper disclosure of confidential information and trade secrets against the medical groups.

After the physicians successfully moved to compel arbitration of Eastland’s breach of contract claims, the trial court denied Heritage and Regal’s motion to stay the litigation notwithstanding its finding that similar issues were involved in the arbitration and court proceedings. Because Code of Civil Procedure section 1281.4 mandates a stay of judicial proceedings pending completion of the arbitration in these circumstances, we grant Heritage and Regal’s petition for writ of mandate and direct respondent superior court to vacate…