Judge: Martha K. Gooding, Case: 2022-0128813, Date: 2023-08-21 Tentative Ruling

Motion to Unseal Complaint

The Motion by People of California ex rel. Quality Reimbursement Services, Inc. (“Relator”) for an order unsealing its qui tam Complaint and permitting it to serve Defendant pursuant to Insurance Code Section 1871.7(e)(2) and California Rules of Court 2.551 is GRANTED.

A complaint “shall be filed in camera” and “shall remain under seal for at least 60 days, and shall not be served on the defendant until the court so orders.” (Cal. Ins. Code § 1871.7(e)(2).) The Complaint is placed under seal “for at least 60 days, during which time the district attorney and the Insurance Commissioner may elect to intervene and conduct the action themselves.” (People ex rel. Allstate Ins. Co. v. Dahan (2016) 3 Cal.App.5th 372, 377; see also People ex rel. State Farm Mut. Auto. Ins. Co. v. Rubin (2021) 72 Cal.App.5th 753, 769.)

Pursuant to CRC 2.551(h)(1), “a sealed record must not be unsealed except on order of the court.”

Here, Relator has satisfied the requirements for the filing and pursuit of a qui tam complaint, as set out in Insurance Code section 1871.7(e)(2).

First, that section requires that a qui tam complaint "shall be filed in camera" and "under seal." (Cal. Ins. Code, § 1871.7(e)(2).)  This was done.  [Zucker Decl., ¶¶ 2-3; ROA #19.]

Second, California Insurance Code section 1871.7 requires that "a copy of the complaint and written disclosure of substantially all material evidence and information the person possesses shall be served on the district attorney and commissioner." (Cal. Ins. Code, § 1871.7(e)(2).)  This, too, was done.  [Zucker Decl., Ex. 1.]

Third, California Insurance Code section 1871.7 requires that a qui tam complaint "shall remain under seal for at least 60 days (Cal. Ins. Code, § 1871.7(e)(2).) Plaintiff’s qui tam complaint was filed on October 17, 2022, was sealed on October 26, 2022, and has remained under seal since that time.  [ROA ## 2, 19; Zucker Decl., ¶¶ 2-3.]

California Insurance Code section 1871.7(0(3) states that "[I]f the district attorney or, commissioner elects not to proceed with the action, the person who initiated the action shall have the right to conduct the action." (Cal. Ins. Code, § 1871(f)(3).)

In the present action, counsel for Relator has cooperated with the offices of the California Department of Insurance and the Orange County District Attorney to assist their review of this case. Neither has intervened in the action and neither has any objection to unsealing the Complaint.

Accordingly, Relator now has the right to conduct this action. (Cal. Ins. Code, § 1871(0(3).)

Relator is ordered to give notice.