Davenport

In this action alleging tortious breach of a health insurance contract, defendant Blue Cross of California (Blue Cross) appeals from an order granting a preliminary injunction in favor of plaintiff Dorothy H. Davenport, enjoining Blue Cross from refusing coverage for medical treatment for ovarian cancer pending arbitration. Blue Cross contends, among other things, that the Federal Arbitration Act (FAA) ( 9 U.S.C. § 1 et seq.) precludes the granting of the preliminary injunction because plaintiff failed to justify the injunction as necessary to preserve the effectiveness of arbitration. We shall conclude that, under both the FAA and California law, the trial court may grant provisional relief pending contractual arbitration only where it is necessary to preserve the effectiveness of arbitration—a test which plaintiff failed to meet in this case. We shall therefore reverse.

Factual and Procedural Background

Plaintiff, a special education teacher in Calaveras County, is covered for major medical and health expenses through a plan provided by the Tuolumne Joint Powers Authority (JPA). The JPA plan is entirely self-funded. Blue Cross is compensated for administering and…