Jones

In these consolidated appeals, plaintiff and appellant Blue Cross of California appeals a judgment confirming a private arbitration award in favor of defendants and respondents Grant and Laurie Jones in a dispute over health care benefits. Appellant contends the arbitrators acted in excess of their powers in reaching a “completely irrational” result.

Facts

In April 1985 respondents’ two-year-old son Todd nearly drowned in the family’s backyard swimming pool. As a result, he suffered severe anoxic encephalopathy and is essentially comatose, requiring constant care. Since late 1985 his condition has remained unchanged, and he has been cared for at home.

Respondents are teachers in the Lodi Unified School District and since 1972 have been insured by appellant under identical group policies. The self-insured San Joaquin Health Care Joint Powers Authority is the provider of the insurance benefits. At the time of Todd’s accident and until June 30, 1988, respondents were each covered by policies which provided a $300,000 lifetime maximum major medical benefit which included unlimited registered nursing services (hereafter, the first policies). This enabled Todd to have 16…