Newton

NORCAL Mutual Insurance Company (NORCAL) appeals from the trial court’s denial of its petition to compel arbitration of a dispute with respondent Nancy Newton. NORCAL maintains the petition should have been granted because respondent was required to arbitrate by the language of the medical malpractice insurance policy it issued to respondent’s late husband, by respondent’s acceptance of the benefits of the policy, and by respondent’s initiation of arbitration against NORCAL. We conclude the trial court’s order must be reversed.

Statement of the Case and Facts

Dr. Harvey Newton, a psychiatrist, was covered under a medical malpractice insurance policy extended by appellant NORCAL. He and respondent, his wife, were sued in a malpractice action by a husband and wife who had each been in individual therapy with Dr. Newton and had been in couples therapy with Dr. and Mrs. Newton that included allegations of sexual misconduct by Dr. Newton and unauthorized treatment of patients by respondent. The plaintiffs alleged that Dr. Newton became involved in a sexual relationship with the plaintiff wife, allowed and failed to supervise the treatment of the plaintiffs by respondent, who…