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SARCHETT v. BLUE SHIELD OF CALIFORNIA

Docket No. L.A. 31988.

43 Cal.3d 1 (1987)

233 P.2d 267

233 Cal. Rptr. 76

JOHN S. SARCHETT, Plaintiff and Respondent, v. BLUE SHIELD OF CALIFORNIA, Defendant and Appellant.

Supreme Court of California.

January 2, 1987.

Attorney(s) appearing for the Case

COUNSEL

Hassard, Bonnington, Rogers & Huber, Howard Hassard, William B. Sturgeon, Rick C. Zimmerman, B. Thomas French and Tyler G. Draa for Defendant and Appellant.

Munger, Tolles & Rickershauser, Daniel P. Garcia, Peter R. Taft and Lucy T. Eisenberg as Amici Curiae on behalf of Defendant and Appellant.

William M. Shernoff, Marian Haycock, Shernoff & Levine, Leonard Sacks and Roni Keller for Plaintiff and Respondent.

OPINION

BROUSSARD, J.

This dispute arose when defendant Blue Shield of California (Blue Shield) denied plaintiff John Sarchett's claim for hospitalization benefits in the amount of $1,203.05. Sarchett sued Blue Shield for the hospital expenses and also for a breach of the implied covenant of good faith and fair dealing. The trial court directed a verdict for Sarchett on breach of the covenant of good faith and fair dealing, and the...

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