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OSHPD v. MUSICK, PEELER & GARRETT

No. B115869.

90 Cal.Rptr.2d 705 (1999)

76 Cal.App.4th 830

OFFICE OF STATEWIDE HEALTH PLANNING AND DEVELOPMENT et al., Plaintiffs and Appellants, v. MUSICK, PEELER & GARRETT et al., Defendants and Respondents.

Court of Appeals of California, Second District, Division Four.

As Modified December 9, 1999.

Attorney(s) appearing for the Case

Murphy Austin Adams Schoenfeld, Raymond M. Cadei, Sacramento, Riegels Campos & Kenyon, Charity Kenyon, Sacramento; Diepenbrock, Wulff, Plant & Hannegan, Sean O. Sheridan and Rhonda Canby, for Plaintiffs and Appellants.

Gibson, Dunn & Crutcher, John H. Sharer, James P. Fogelman and John C. Conway, Los Angeles, for Defendants and Respondents.

Certified for Partial Publication.*

EPSTEIN, J.

INTRODUCTION

The Office of Statewide Health Planning and Development (OSHPD), a State of California agency, agreed to insure a loan incurred by Triad, a newly formed nonprofit corporation. The loan was for the purchase of two hospitals. John Browning, an attorney at Musick, Peeler & Garrett (MPG), represented Triad in the acquisition of the hospitals. After Triad defaulted...

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