Smith v. PacifiCare Behavioral Health of California, Inc.

These consolidated proceedings involve the question whether a health care service plan may enforce an arbitration clause contained in the plan and in related subscriber agreements which does not comply with the statutory disclosure requirements applicable to such clauses. In case No. B145004, the petitioner, George Rivera, seeks a writ of mandate vacating a trial court order granting the motion of the real party in interest, PacifiCare of California (PacifiCare), to compel arbitration in accordance with the plan’s arbitration clause. In case No. B142321, PacifiCare has appealed the order of the trial court denying PacifiCare’s motion to compel arbitration pursuant to the same clause. The respondent, Lisa Ellen Smith, makes the identical arguments in support of the trial court’s order in her case as does Rivera in his.

As a part of its regulation of health care service plans, California imposes certain disclosure requirements as a predicate to the enforcement of arbitration clauses contained in plan subscriber agreements. Health and Safety Code section 1363.1 (section 1363.1) (see fn. 15, post) provides that a binding arbitration clause in a health care service plan must…