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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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Kappelman v. Lutz, No. 80996-8. Theodore Lutz took Amber Kappleman for a ride on his motorcycle even though he had only an instructional permit which did not allow him to carry passengers. They crashed when a deer ran out in front of them on the highway. Kappleman was injured, sued Lutz, and lost at the trial court. She appealed, citing the judge's refusal to allow evidence that Lutz lacked a motorcycle endorsement and his instructions to the jury on the "sudden emergency doctrine" (which says that a person in danger cannot be expected to "act as prudently as one might have had there been time for deliberation"). The Court of Appeals upheld the trial court and today the Supreme Court unanimously affirms that decision in an opinion by Justice James Johnson. (briefs and arguments)

Putman v. Wenatchee Valley Medical Center, et al., No. 80888-1. Kimme Putman sued the Medical Center and several of its medical staff, alleging negligent failure to diagnose her ovarian cancer. The trial court dismissed because Putman failed to file a "certificate of merit" as required by RCW 7.70.150. Here, the Supreme Court reverses and holds that the statute violates the State Constitution because it "unduly burdens the right of access to courts" and violates the separation of powers. According to the majority opinion by Justice Owens, "Requiring plaintiffs to submit evidence supporting their claims prior to the discovery process violates the plaintiffs' right to access to courts." Justice Madsen, joined by Justice James Johnson, concurs as to separation of powers, but disagrees that the statute unduly interferes with access to the courts. (briefs and arguments).

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Faust v. Albertson, No. 81356-6. Hawkeye Kinkaid was extremely drunk when his car crossed the center line and struck a car driven by Bianca Faust. Kinkaid died and Faust and her passengers were injured, including one who was rendered paraplegic. Faust sued the Moose Lodge where Kinkaid had been drinking and Alexis Chapman, Kinkaid's girlfriend who had also been serving him drinks. A jury found the Lodge and Chapman liable for negligent overservice according to RCW 66.44.200 and awarded Faust a $14 million judgment. The trial court denied defendants' motion for judgment as a matter of law.

The Division One Court of Appeals reversed and vacated the judgment, believing that the evidence presented at trial was insufficient to show that Kinkaid was "apparently under the influence of liquor" as required by the statute. Here, in an opinion by Justice Owens, the Court unanimously overturns the Court of Appeals decision and reinstates the jury verdict. The Court also rejects the arguments of amici Mothers Against Drunk Driving and the Washington State Association of Justice Foundation (trial lawyers) that the threshold for plaintiffs in these cases should be lowered. (briefs, argument, AP story)

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