Question:
I am a resident of California. I recently received a bill from a
medical center for a visit more than 4 years ago, saying that the
insurance company turned down the payment. Since it's been so long and
I don't remember or keep records for that long, I am not sure what to
do.
I checked with the insurance company and they said they turned down the
payment because the center was not registered with them at that time.
In that case, wasn't the medical center supposed to inform me of the
fact at the time of the service ? Given that so much time has passed,
what is my liability here ?
Answer:
The statute of limitations in California is four years on a written
contract. The clock starts running at the time of breach. Without seeing
the contract, there is no way to tell when the breach occurred. Even if we
determine the date of breach, there are a few wrinkles in the law which make
it impossible to give you a definitive answer. For example, California Code
of Civil Procedure Section 351 says that the time the defendant spends
outside of the state of California doesn't count. That means the clock
stops for that period of time. If you consult your own civil practice
attorney, a clear answer will be found, because that person can ask you
questions pertaining to the case and the parties.
If the contract was in writing, it may be a good strategy to ignore the
matter for as long as possible, so that the maximum amount of time passes
before the hospital sues. That would maximize the chances that the statute
of limitations has run.
