Ex-Hospital CEO Beats Arbitration Bid In $3M Kickback Suit

Law360, New York (December 12, 2013, 9:42 PM EST) -- A California appeals court ruled Wednesday that a courtroom is the proper venue for South Bay Hospital Management Co. LLC’s allegations that a former Tri-City Medical Center executive and his management company owe $3.33 million for mistreating employees and receiving kickbacks, despite South Bay's arbitration agreement.

In a three-judge panel's unpublished opinion Wednesday, the state appellate court upheld the Los Angeles Superior Court’s ruling that South Bay — which, on behalf of Tri-City, paid former Tri-City CEO Arthur Gerrick to run the hospital — cannot force...
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