Appellate Court Update for May 2023

Arbitration

Arbitrators who disclose before appointment that they are also currently arbitrating other matters involving one of the same parties are not required to disclose the outcome of those other matters. In this case, Kaiser failed to timely diagnose Andrea Perez with cancer. Perez sued Kaiser for medical malpractice. The trial court ordered the case into arbitration. Before appointment, the proposed arbitrator disclosed that he was also arbitrating three other matters involving Kaiser. During Andrea’s arbitration, the arbitrator decided all three cases in Kaiser’s favor. Both Kaiser and the arbitrator knew the outcome of these other matters, but the arbitrator did not disclose them to Andrea. Andrea died of cancer during the arbitration proceeding. The arbitrator decided Andrea’s case in favor of Kaiser. Following conclusion of Andrea’s arbitration, Andrea’s attorney discovered that the arbitrator had decided all of the other three matters in Kaiser’s favor and appealed, contending that the arbitrator should have disclosed the outcome. The First District Court of Appeal held that Standard 7 of the Judicial Council’s Ethics Standards for Neutral Arbitrators required disclosure only of the resolution of matters decided prior to the arbitrator’s appointment. Evans Kingsbury LLP represented Andrea’s parents on appeal.

Perez v. Kaiser

Case no. A165140 (First Appellate District)

May 16, 2023