California Consumer Health Care Council, Inc. v. Department of Managed Health Care

Plaintiffs, the nonprofit California Consumer Health Care Council, Inc. (Consumer), and nine of its members, challenge defendant Department of Managed Health Care’s (Department) implementation of provisions of the Knox-Keene Health Care Service Plan Act of 1975 (Act; Health & Saf. Code, § 1340 et seq.) relating to disclosure of medical reports and the disposition of patient grievances.

The trial court sustained without leave to amend a demurrer to Consumer’s second amended complaint alleging violations of the Information Practices Act of 1977 (IPA; Civ. Code, § 1798 et seq.), Administrative Procedure Act (APA), and due process, leaving intact only Consumer’s claim under section 1368. Ultimately, the trial court granted summary judgment in favor of the Department on the section 1368 claim. Consumer appeals the rulings on both the demurrer and the motion for summary judgment. The Department filed a motion for sanctions under Code of Civil Procedure section 907. We shall affirm the judgment and deny the Department’s motion for sanctions.

FACTUAL AND PROCEDURAL BACKGROUND

The Act

Pursuant to section 1341, subdivision (a) of the Act, the Department is entrusted with the…