Health Net of California, Inc. v. Department of Health Services

Opinion

KOLKEY, J.

Civil Code section 1668 provides: “All contracts which have for their object, directly or indirectly, to exempt anyone from responsibility for his own fraud ... or violation of law, whether willful or negligent, are against the policy of the law.”

In this case, we are called upon to resolve whether section 1668 invalidates a contractual clause that prohibits any recovery of damages (but not equitable relief) for any violation of statutory or regulatory law not made part of the parties’ contractual obligations. Based on the clear intent of section 1668, as expressed in its…