American Bank & Trust Co. v. Community Hospital of Los Gatos-Saratoga, Inc

In American Bank & Trust Co. v. Community Hospital of Los Gatos-Saratoga, Inc., 36 Cal. 3d 359, 683 P.2d 670, 204 Cal. Rptr. 671 (1984), the statute at issue distinguished medical malpractice plaintiffs from all other personal injury plaintiffs. The court held that the statutory requirement that judgment creditors in all medical malpractice cases receive periodic payments was rationally related to the legislative goal of reducing insurance premiums and therefore was not unconstitutional. Because that statute did not afford disparate treatment to similarly situated individuals, the classification was reasonably calculated to further a legitimate state interest.