As you may recall from one of my previous articles, CCP §998 was amended, effective January 1, 1998, to include medical malpractice arbitrations within its scope, and in particular, provisions for reimbursement of costs.  Until this last year, Kaiser has argued that the amendment to CCP §998 impaired the obligation of existing contracts and therefore was not enforceable, and that the vested substantial rights of the contracting parties were protected from legislative impairment.

Kaiser has changed its position.  In an August 21, 2000, letter, senior counsel, Angel A. Santos, stated, "Kaiser Foundation Health Plan, Inc. will no longer object to California Code of Civil Procedure section 998 demands on the basis of inapplicability to the Kaiser arbitration [system]..."

I urge any plaintiff's attorney involved in a Kaiser arbitration to make appropriate statutory offers to compromise.