Neaman

Plaintiffs and appellants Jerome Neaman, Avery Neaman and Blythe Leiderman (the Neamans) appeal from the judgment entered in favor of defendants and respondents Kaiser Foundation Hospitals, Southern California Permanente Medical Group, and Kaiser Foundation Health Plan, Inc. (Kaiser), following the trial court’s denial of the Neamans’ motion to vacate an arbitrator’s award.

Because the neutral arbitrator failed to disclose a substantial business relationship with Kaiser, the judgment will be reversed and the matter remanded to the trial court for vacation of the arbitrator’s award and a rehearing before a new panel of arbitrators.

Factual and Procedural Background

The Neamans, who are the spouse and adult children of Freya Neaman, deceased, filed an action in superior court against Kaiser for medical malpractice in treating the decedent for lung cancer.

The superior court action was stayed and the case was submitted to mandatory binding arbitration pursuant to the provisions of decedent’s medical and hospital service agreement (the Agreement) with Kaiser.

The matter was arbitrated on December 17 and 18,1990, before a panel of three arbitrators as required by the…