Lauderdale Associates v. Department of Health Services
Opinion
Lead Opinion
Walker, J.
The Department of Health Services and its director, Kimberly Belshé (collectively, the Department), appeal the trial court’s judgment for Lauderdale Associates, which does business as Alhambra Convalescent Hospital (Alhambra), in Alhambra’s action seeking breach of contract damages and equitable relief. The court determined that Alhambra is entitled to retroactive Medi-Cal reimbursement from the Department for skilled nursing services provided to three patients at Alhambra. The Department contends that: (1) we should reject the equitable doctrine permitting recovery as articulated in Valley View Home of Beaumont, Inc. v. Department of Health Services (1983) 146 Cal.App.3d 161 [ 194 Cal.Rptr. 56 ] (Valley View), and upon which the trial court based its decision; (2) regardless of its validity, Valley View does not apply to the facts of this case; and (3) the trial court abused its discretion because the uncontradicted evidence shows that Alhambra acted with gross negligence. We decline the Department’s invitation to reject Valley View and disagree with its remaining contentions. We affirm.