Van De Kamp v. Gumbiner

[1265]

Opinion

TURNER, J.

*

I. Introduction

The Attorney General of the State of California, John K. Van de Kamp, appeals from a judgment of dismissal entered by Superior Court Judge Edward M. Ross following the sustaining of demurrers to the Attorney General’s third amended cross-complaint without leave to amend. The Attorney General’s action, brought in his own name, was for breaches of a settlement agreement and conspiracy to breach fiduciary duties against FHP, Inc., a health maintenance organization,

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and for negligent undervaluing of assets and conspiracy to undervalue assets against Ernst & Whinney, an accounting firm. The superior court held that the Attorney General had no authority to maintain the action. Because the Attorney General’s authority to supervise and regulate FHP, Inc., under the settlement agreement and the common law was superseded by legislative action, the judgment of dismissal is affirmed. The Attorney General also appeals from Superior Court Judge John Zebrowski’s denial of a motion to tax costs. There was no abuse of discretion by the trial court in denying the motion to tax costs and the order is therefore affirmed.

II. Substantive and Procedural Facts

A.

The Allegations of the Third Amended Cross-complaint

1.

Introduction

The third amended cross-complaint involved three general areas of allegations. First, it was alleged that various cross-defendants breached a 1977 settlement agreement. These allegations were contained in the first nine causes of action which were each entitled “Breach of Contract.” Second, the Attorney General alleged that several individual cross-defendants had conspired to breach their fiduciary duties to FHP. These fiduciary duty claims were contained in the tenth and twelfth causes of action which were entitled “Conspiracy to Breach Fiduciary Obligations.” Third, an