Hospital

FountainValley Regional Hospital and Medical Center, a California corporation (Hospital), appeals from a judgment which denied its petition for administrative mandamus relief (Code Civ. Proc., § 1094.5). Hospital sued the Director of the California State Department of Health Services (the Department) to prevent the Department from assessing Medi-Cal liabilities against Hospital (refunds of money previously paid to Hospital by the state) for fiscal years 1981, 1982 and 1983. The liabilities pertain to services previously rendered by Hospital to its Medi-Cal patients. These liabilities are in excess of $470,000, and were not assessed against Hospital until September 1994. Although Hospital admits that the money sought to be reclaimed by the Department consists of “mistaken payments made to [Hospital],” Hospital contends the Department’s delay in assessing the liabilities is unreasonable and prejudicial, and therefore the doctrine of laches precludes the assessment.

The trial court ruled that while Hospital may indeed have a just claim of laches against the Department, Hospital would not prevail in this mandamus action because it had not presented evidence, at the…