County of Riverside v. Loma Linda University

In County of Riverside v. Loma Linda University (1981) 118 Cal. App. 3d 300, the county filed an action against Loma Linda University, seeking indemnification for sums paid to settle a medical malpractice action. Following trial, judgment was entered against Loma Linda for half of the monetary value of the settlement. Loma Linda appealed, contending for the first time that the county lacked standing to seek indemnity because the settlement of the medical malpractice action had been paid by an insurance company. The Court of Appeal rejected the contention, noting there was no evidence in the record that the county had not suffered a loss as a result of the malpractice settlement. The court went on to note that "lack of standing as a real party in interest is not jurisdictional; it is equivalent only to a failure to state a cause of action. While a failure to state a cause of action may be raised at anytime, during trial or appeal, reversal of a judgment on that ground is justified and required only if the error resulted in a miscarriage of justice." ( Id. at p. 319.) The court noted that Loma Linda had not shown it was prejudiced by the failure to bring the action in the name of the insurance company, there was no suggestion Loma Linda would be subjected to a subsequent claim by the county's insurer, and there was no showing that affirmance of the judgment would result in a double recovery by the county for the same loss. The court held, therefore, that Loma Linda failed to demonstrate that the failure to bring the action in the name of the insurer resulted in a miscarriage of justice. ( Id. at p. 320.)