Reversible Error: District Court Stutters, Ninth Circuit Shudders, Litigation Continues For Sutter

Introduction

Over ten years ago, individuals and businesses insured by health plans that contract with Sutter Health filed a class action lawsuit against Sutter Health alleging antitrust violations under federal and California laws. Sutter is a healthcare giant in Northern California, serving over 100 communities and 3 million people, and includes 24 hospitals, five medical foundations, and 40 ambulatory service centers.

The case was tried to a jury on only the California law allegations in 2022, and the jury returned a verdict in favor of Sutter Health on both tying and unreasonable course of conduct claims. On appeal, in a split decision, the Ninth Circuit set aside the jury verdict and ordered a new trial. The court found that 1) the jury instructions' failure to include Sutter's purpose and intent as an element that the jury should consider and 2) exclusion of evidence created prejudicial errors and warranted a reversal of the jury verdict and remand to the