Cindy Hailey and Steven Hailey v. California Physicians’ Service dba Blue Shield of California

Joint Stipulation of Factual and Legal Issues; Order Granting Directed Verdict in Favor of Blue Shield of California


Based on the foregoing stipulation of factual and legal issues, the other evidence presented in this case, and the motion of California Physicians' Service dba Blue Shield of California ("Blue Shield") for a directed verdict, the Court hereby rules as follows:

The Court grants Blue Shield's motion and directs a verdict in favor of Blue Shield and against plaintiffs Cindy and Steve Hailey (the "Haileys") on each and every cause of action alleged in the Haileys' Second Amended Complaint; and The Court directs a verdict in favor of Blue Shield as to the fIrst cause of action in Blue Shield's cross-complaint for declaratory relief as to the validity of the rescission.

From Blue Shield of California Press Release: Today's verdict is a complete vindication for Blue Shield of California. It means we acted properly every step of the way. It means that our underwriting procedures were fair and complete, our application was clear, and we acted in good faith. There was no post-claims underwriting. The evidence of deceit by the Haileys was overwhelming. This decision proves that Blue Shield of California had every right to rescind the Haileys' coverage.

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Reference Info:Verdict | State, 9th Circuit, California | United States

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.

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