Kamil

A service agreement between a medical group and an insurance provider requires arbitration of any dispute “concerning the terms of [the] [agreement.” The insurance provider seeks to terminate the agreement because of alleged inadequate performance by the medical group. The insurance provider issues press releases that allegedly defame the medical group.

Although the dispute may have given rise to the alleged defamation, the broad arbitration clause has boundaries. It does not apply to the medical group’s defamation action against the insurance provider. Defendants appeal the denial of their motion to compel arbitration. We affirm.

FACTS

Complaint

The plaintiffs are Valley Heart Associates Medical Group, Inc., 16 individual physicians employed by Valley Heart (collectively Physicians), and the Medical Staff of Doctors Medical Center in Modesto, an unincorporated association of physicians practicing at Doctors Medical Center (Medical Staff).

The defendants are Blue Cross of California, its parent corporation, Wellpoint Health Networks, Inc., individual officers of Blue Cross, a spokesman for Blue Cross (collectively Blue Cross), and Health Benchmarks.

The complaint…