Factor At A Discount. Oh, What A Tangled Web We Weave.

A plaintiff was injured in a car accident and treated at first at Kaiser, and later at a surgery center on a “lien basis.” The bill for treatment at the surgery center was between $40,000 and $50,000. On the day of the surgery, the surgery center sold its account receivable and lien to a factor at a discount. The factor advised plaintiff it expected to be paid 100 percent. As it turned out, the president of the factoring company is plaintiff’s lawyer, and its vice-president is the brother of one of the owners of the surgery center. Meanwhile, back at court, the injured plaintiff sued the other driver, and lawyers for the other driver subpoenaed the factor’s business records. The trial court granted the factor’s motion to quash and awarded monetary sanctions of $5,600 against the other driver and her counsel. The appellate court reversed, concluding the superior court abused its discretion, and that “the subpoena is reasonably calculated to lead to the discovery of admissible evidence relating to the amount of medical expenses [plaintiff] actually incurred.” (Dodd v. Cruz (Cal. App. Second Dist., Div. 3; February 5, 2014) 223 Cal.App.4th 933, [167 Cal.Rptr.3d 601].)