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American Best Food, Inc., et al. v. Alea London, LTD., No. 80753-1. American Best Food owned the Federal Way dance club Café Arizona. Michael Dorsey was shot nine times in front of the club. Security guards carried him inside, but then carried him back out and "dumped him on the sidewalk." Dorsey sued the Café for failing to protect him from criminal conduct and for exacerbating his injuries after the assault. The Café's insurer, Alea London, refused to indemnify or defend the Café because the policy excluded "injuries or damages 'arising out of' assault or battery." The Café sued Alea for breach of contract, bad faith, and violation of the Consumer Protection Act. The trial court granted summary judgment for Alea, but the Court of Appeals reinstated the contract and bad faith claims and held that Alea had breached its duty to defend.

The Supreme Court today sustains the lower court, holding that "Alea's failure to defend based upon a questionable interpretation of law was unreasonable and Alea acted in bad faith as a matter of law." Justice Chambers wrote for the five-member majority. Justice Owens, with three other justices, dissented as to the finding of bad faith. (briefs, argument)

Columbia Physical Therapy v. Benton Franklin Orthopedic Associates, No. 81734-1. Are physical therapists engaged in the practice of medicine? Benton Franklin Orthopedic Associates (BFOA) refers many of its patients to Benton Franklin Physical Therapy (BFPT), which it also controls through common ownership. Columbia, one of BFPT's competitors, sued alleging violations of the corporate practice of medicine doctrine (link to PDF), The Professional Services Corporation Act (PSCA) (RCW 18.100), the antirebate statute (RCW 19.68), and the Consumer Protection Act (RCW 19.86). The trial court granted BFOA summary judgment on the PSCA claim and certified the other issues to the Court of Appeals, which denied review.

The Court today holds that physical therapy is included in the definition of the practice of medicine. The Court upholds the grant of summary judgment on the PSCA claim and directs the trial court to enter summary judgment also in BFOA's favor on the corporate practice of medicine and antirebate statute claims. Because Columbia did assert facts that, if proven, would constitute breaches of the CPA, the Court upholds the trial court's refusal to grant summary judgment on the issue and remands for trial. Justice Owens wrote for the unanimous Court. (briefs--including 28 amicus briefs, argument)

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Ames v. Dep't of Health, No. 80644-6. Dr. Geoffry Ames operated a "purported holistic medical practice in Richland, Washington," where he told a patient he could diagnose and treat allergies using a galvanic skin response machine called "LISTEN" (Life Information System Ten). The machine has not been approved by the FDA for those purposes. Additionally, Ames claimed that "he was able to replicate what the machine could do telepathically...." After the patient filed a complaint with the Department of Health, Ames was determined to have committed acts of professional misconduct under Washington law and sanctioned. Ames challenged that insufficient expert witness testimony was presented at the administrative hearing. Here Justice Owens writes for a unanimous court upholding the decisions below, finding that the "evidence presented demonstrated by clear and convincing evidence to a layperson that [Ames] was using a machine for purposes for which it was not designed and for which he was not specifically trained." (Briefs and oral argument)

Lundsford v. Saberhagen Holdings, Inc., No. 80728-1. Ronald and Esther Lunsford brought an action for negligence and strict product liability against Saberhagen Holdings. Saberhagen is the successor in interest to The Brower Company, which provided asbestos insulation products that Ronald Lunsford's father worked with in 1958. Those fibers apparently contributed to Ronald Lunsford's mesothelioma. Until 1992, there was an exception to the retrospective application of court decisions to pre-existing claims. This "selective prospectivity" exception was eliminated in Robinson v. City of Seattle. Saberhagen argues that Robinson has been subsequently overturned and that selective prospectivity applies in this case against the strict product liability claim. Justice Fairhurst, joined by five justices, holds that Robinson has not been overturned and that "strict product liability applies retroactively to all cases not barred by procedural requirements or goverend by the tort reform act, including Lunsford's ... claims...." Justice Madsen authored a concurrence signed by Chief Justice Alexander and Justice Jim Johnson disagreeing with the Court's strict interpretation of Robinson. (Briefs and oral argument)

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