Joel

I.

Introduction

Appellants Mannie Joel, M.D., and his medical corporation (Dr. Joel) appeal the dismissal by demurrer of their case against Valley Surgical Center and individual defendants (ValleyCare). The trial court sustained Valley-Care’s demurrer to the entire first amended complaint based on Dr. Joel’s failure to exhaust administrative remedies allegedly available under his contract with ValleyCare and applicable medical staff bylaws. The trial court also sustained a demurrer to the third cause of action for defamation, finding this claim was additionally barred by various privileges, specifically Business and Professions Code section 805 and Civil Code section 47. We reverse the trial court’s ruling as to the demurrer to the entire first amended complaint, but affirm the demurrer to the third cause of action.

n.

Background

On November 8, 1995, Dr. Joel was preparing to treat one of his patients at Valley Surgical Center after administering an anesthetic pain block. Although Dr. Joel believed he had obtained ValleyCare’s permission to administer the anesthesia and to perform the procedure, ValleyCare disagreed and informed Dr. Joel that if he continued,…