Gill

Gill v. Rich

Good Law
128 Cal. App. 4th 1254·2005 Cal. App. LEXIS 685·2005 Daily Journal DAR 4978·28 Cal. Rptr. 3d 52·2005 Cal. Daily Op. Serv. 3604
Court of Appeal of CaliforniaApril 29, 2005B158336California8,904 words

Opinion

Opinion

Aldrich, J.

I.

INTRODUCTION

Hundreds of physicians and surgeons formed an interindemnity arrangement pursuant to Insurance Code section 1280.7 to provide an alternative to medical malpractice insurance. In doing so, they funded a trust, Physicians Interindemnity Trust (PIT). Eventually, the trust was forced into receivership because it could not meet its obligations. Appellants are 47 members of PIT who refused to pay assessments levied on them by the receiver.

In the matter before us, the receiver obtained judgments against appellants for the unpaid assessments. Appellants appeal from these judgments and from a number of preliminary orders.

In the published parts of this opinion (pts. I., II., III.A, DO, III.C, and IV.), we hold that appellants (1) could not rescind their contracts with PIT; (2) were responsible for the assessments; and (3) remained responsible for assessments even though their memberships had been terminated.

In an unpublished part of this opinion (pt. III.D), we reject appellants’ contention that the trial court abused its discretion in permitting the receiver to amend the complaint. In another unpublished part of this opinion (pt. III.E), we conclude that…

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