Muhyeldin

People Ex Rel. Allstate Insurance v. Muhyeldin

Good Law
112 Cal. App. 4th 604·2003 Cal. App. LEXIS 1523·2003 Daily Journal DAR 11329·5 Cal. Rptr. 3d 492
Court of Appeal of CaliforniaSeptember 18, 2003B150524California2,418 words

Opinion

Opinion

Vogel, J.

INTRODUCTION

This action arises out of an insurer’s lawsuit against three physicians and their medical clinics. The insurer alleged the defendants had committed widespread fraud by submitting hundreds of false claims to it. After a lengthy jury trial, a jury found in the insurer’s favor, resulting in an award of slightly more than $7 million. The court awarded costs and attorney fees to the insurer under the appropriate statutory provision. A judgment was entered and this appeal followed. We find no merit to any of the appellate contentions and therefore affirm the judgment. In addition, we direct the trial court to determine and award to the insurer a reasonable amount of appellate attorney fees and costs.

FACTUAL AND PROCEDURAL BACKGROUND

Penal Code section 550 (section 550) criminalizes the act of knowingly presenting to an insurance company a false claim for benefits. Insurance Code section 1871.7, subdivision (b) (section 1871.7) creates civil liability for violating section 550. It provides; “Every person who violates any provision of . . . Section . . . 550 ... of the Penal Code shall be subject, in addition to any other penalties that may be prescribed by law,…

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