Suit Against CalPERS Survives Demurrer For The Time Being

Last Friday, I wrote this post about Sacramento Superior Court Judge Allen Sumner’s tentative ruling in a case alleging that CalPERS improperly laundered the salary of the receiver appointed by the U.S. District Court to oversee California’s prison health care. On Tuesday, Judge Sumner signed this order. Consistent with the tentative ruling, the case has survived for now CalPERS’ demurrer.[1] However, Judge Sumner has asked for additional briefing on the question of the petitioner’s standing. Thus, it remains to be seen whether the case will survive.

In 2005, U.S. District Court Judge Thelton E. Henderson established a receivership for medical care in California’s prisons. The Receiver reports to the federal court, not the Governor. The gist of the petitioner’s claim is that the California Judicial Council through the Administrative Office of the Courts appointed the current receiver as a “Federal Court Consultant” and then “loaned” the receiver to the California Prison Health Care Receivership Corporation (the “CPHCR Corporation”). The alleged purpose of all these machinations was to maintain the receiver’s eligibility with CalPERS.

Please see full article below for more information.

LOADING PDF: If there are any problems, click here to download the file.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Allen Matkins Leck Gamble Mallory & Natsis LLP | Attorney Advertising

Written by:


Allen Matkins Leck Gamble Mallory & Natsis LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.