Department of Health Services v. Superior Court

Opinion

FILES, P. J.

The discovery issue in this proceeding arises out of a civil action for damages brought by Century City Hospital (CCH) against the state Department of Health Services and others. CCH operates a hospital which provides services under the Medi-Cal program to persons who qualify for public social services. (Welf. & Inst. Code, § 14000 et seq.) The state reimburses such providers for the reasonable cost of the services rendered. A dispute between CCH and the department concerning the computation of costs led to a formal administrative hearing before Hearing Officer Takashi Kanenaga, who handed down his proposed decision on March 9, 1979. That decision was adopted by the department on March 22, 1979.

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CCH, being dissatisfied with the administrative decision, petitioned the superior court in Los Angeles for review under Code of Civil Procedure section 1094.5; and on September 14, 1979, that court entered its judgment ordering the department to vacate its March 22, 1979, decision. The findings of the superior court declared that the administrative decision was arbitrary and capricious and unsupported by the facts. (Los Angeles Superior Court No. C 277278, entitled Century City Hospital v. State Department of Health Services et al.)

On December 28, 1978, which was prior to the decision of Hearing Officer Kanenaga, CCH filed a civil action against the State of California, Department of Health Services, and two named individuals, for compensatory and exemplary damages. The gravamen of the complaint was that the defendants had unlawfully failed and refused to reimburse CCH for its services promptly and accurately. That factual allegation, embellished by familiar legal epithets, was pleaded in five counts invoking theories of breach of contract and violation of constitutional rights. This is the action out of which the discovery issue arises.

On May 21, 1979, CCH gave notice of its intention to take the oral deposition of Hearing Officer Takashi Kanenaga. The defendants moved for a protective order to prevent the taking of the deposition, upon the ground that the taking “would subject deponent to annoyance, embarrassment or oppression and not lead to discovery of evidence reasonably calculated to lead to discovery of evidence admissible at trial.” The motion was supported by an argument that inquiry into the mental processes of a quasi-judicial hearing officer is not permissible discovery. The defendants also contended that the deposition was an attempt to circumvent the discovery rule applicable to administrative mandate proceedings under Code of Civil Procedure section 1094.5.