Health Reform Action Project (HRAP) v. Archstone Foundation
Published: Dec. 20, 1997 | Result Date: Dec. 3, 1997 | Filing Date: Jan. 1, 1900 |Case number: 776008 – $2,000,000
Facts
In 1985, defendant Archstone Foundation (Foundation) was created when FHP International, the HMO giant, converted from not-for-profit to a "For Profit" corporation. The conversion agreement with the State required that the Foundation expend a certain percentage of its available grant money for the provision of direct medical services to the poor. To meet that requirement, FHP initiated a project known as Health Reform Action Project (HRAP), and agreed to fund its initial three year effort to deliver primary medical care to the poor in Santa Ana, California with a grant of $1.5 million a year for three years. After paying the first year, the Foundation Board of Directors, which included John Knox (Knox-Keene Bill), Jack Peltason (UCI Chancellor), Bob Maxson (Long Beach State President), and Harriett Weider (former Orange County Supervisor), voted to "defund" the project for lack of sufficient progress. The plaintiff Health Reform Action Project brought this action against defendant Foundation based on a breach of contract theory of recovery.
Settlement Discussions
The plaintiff made a settlement demand of $2 million at the settlement conference and defendant made an offer of $100,000.
Damages
The plaintiff claimed $3 million in damages (second and third year funding $1.5 million per year)
Other Information
The verdict was reached less than nine months after the case was filed due to plaintiffs' motion to advance and specially set due to "public interest" (charitable purpose) and HRAP's likely exhaustion of remaining funds prior to the time the case would have come on for trial in the ordinary course. A settlement conference was held on Oct. 10, 1997, before Judge Ikola. It did not resolve the matter.
Deliberation
five hours
Poll
9-3
Length
nine days
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