Dhs

Plaintiff Waterman Convalescent Hospital, Inc. (Waterman) appeals from a judgment of dismissal entered against it after defendant State Department of Health Services’ (DHS) demurrer to the first amended complaint was sustained without leave to amend. The trial court found that Waterman’s action was barred by the statute of limitations set forth in Health and Safety Code section 1428, subdivision (b). The Appellate Division of the San Bernardino Superior Court, in a decision certified for publication, held that the statute of limitations did not bar the action, and reversed the trial court. On our own motion, in accordance with rule 62(a) and (b) of the California Rules of Court, we ordered transfer of this case to secure uniformity of decision and to settle an important question of law. After undertaking an independent review, we agree that the trial court must be reversed.

Facts and Procedural History

As this is an appeal after a demurrer was sustained without leave to amend, the operative facts are those alleged in the first amended complaint. Waterman does business as Plott Nursing Home. DHS is the state agency charged with regulating such facilities pursuant to the…