22 Employee Benefits Cas. 1707, 98 Cal. Daily Op. Serv. 4491, 98 Cal. Daily Op. Serv. 5819, 98 Daily Journal D.A.R. 6195, 98 Daily Journal D.A.R. 8087 Nick Parrino, as Administrator of the Estate of Stephen Frank Parrino, Deceased, and Successor to Steve Parrino, D.C. v. Fhp, Inc., a California Corp. Fhp Healthcare, a California Corp., AKA Fhp Value Plan Fhp Administrators, a Division of Ultralink Inc., a California Corporation Friendly Hills Healthcare Network, a California Non-Profit Corporation, Dba Friendly Hills Regional Medical Center Friendly Hills Medical Group, a General Partnership Friendly Hills Regional Medical Center Guild, Inc., a California Non-Profit Corporation Rem Almirante, M.D., an Individual Jeffrey Wolf, M.D., an Individual

146 F.3d 699
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 28, 1998
Docket96-55920
StatusPublished

This text of 146 F.3d 699 (22 Employee Benefits Cas. 1707, 98 Cal. Daily Op. Serv. 4491, 98 Cal. Daily Op. Serv. 5819, 98 Daily Journal D.A.R. 6195, 98 Daily Journal D.A.R. 8087 Nick Parrino, as Administrator of the Estate of Stephen Frank Parrino, Deceased, and Successor to Steve Parrino, D.C. v. Fhp, Inc., a California Corp. Fhp Healthcare, a California Corp., AKA Fhp Value Plan Fhp Administrators, a Division of Ultralink Inc., a California Corporation Friendly Hills Healthcare Network, a California Non-Profit Corporation, Dba Friendly Hills Regional Medical Center Friendly Hills Medical Group, a General Partnership Friendly Hills Regional Medical Center Guild, Inc., a California Non-Profit Corporation Rem Almirante, M.D., an Individual Jeffrey Wolf, M.D., an Individual) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
22 Employee Benefits Cas. 1707, 98 Cal. Daily Op. Serv. 4491, 98 Cal. Daily Op. Serv. 5819, 98 Daily Journal D.A.R. 6195, 98 Daily Journal D.A.R. 8087 Nick Parrino, as Administrator of the Estate of Stephen Frank Parrino, Deceased, and Successor to Steve Parrino, D.C. v. Fhp, Inc., a California Corp. Fhp Healthcare, a California Corp., AKA Fhp Value Plan Fhp Administrators, a Division of Ultralink Inc., a California Corporation Friendly Hills Healthcare Network, a California Non-Profit Corporation, Dba Friendly Hills Regional Medical Center Friendly Hills Medical Group, a General Partnership Friendly Hills Regional Medical Center Guild, Inc., a California Non-Profit Corporation Rem Almirante, M.D., an Individual Jeffrey Wolf, M.D., an Individual, 146 F.3d 699 (9th Cir. 1998).

Opinion

146 F.3d 699

22 Employee Benefits Cas. 1707, 98 Cal. Daily
Op. Serv. 4491,
98 Cal. Daily Op. Serv. 5819,
98 Daily Journal D.A.R. 6195,
98 Daily Journal D.A.R. 8087
Nick PARRINO, as Administrator of the Estate of Stephen
Frank Parrino, Deceased, and successor to Steve
Parrino, D.C., Plaintiff-Appellant,
v.
FHP, INC., a California Corp.; FHP Healthcare, a California
Corp., aka FHP Value Plan; FHP Administrators, a Division
of Ultralink Inc., a California Corporation; Friendly Hills
Healthcare Network, a California non-profit corporation, dba
Friendly Hills Regional Medical Center; Friendly Hills
Medical Group, a general partnership; Friendly Hills
Regional Medical Center Guild, Inc., a California non-profit
corporation; Rem Almirante, M.D., an individual; Jeffrey
Wolf, M.D., an individual, Defendants-Appellees.

No. 96-55920.

United States Court of Appeals,
Ninth Circuit.

Argued and Submitted Nov. 4, 1997.
Decided June 12, 1998.
As Amended July 28, 1998.

Christopher E. Angelo, and Anthony Kornarens, Mazursky, Schwartz & Angelo, Los Angeles, California, for plaintiff-appellant.

L. Rachel Lerman Helyar, Horvitz & Levy, Encino, California, and Brian P. Barrow, O'Flaherty & Belgum, Long Beach, California, for defendants-appellees.

Appeal from the United States District Court for the Central District of California; Terry J. Hatter, Jr., District Judge, Presiding. D.C. No. CV-95-04830-TJH.

Before: BROWNING, BRUNETTI, and FERNANDEZ, Circuit Judges.

BROWNING, Circuit Judge:

Stephen Parrino subscribed to an HMO plan administered by FHP, Inc. and secured by his employer, Parrino Trucking Co. Friendly Hills acted as the plan's primary health care provider. Parrino was diagnosed with a brain tumor, and Friendly Hills referred him to Loma Linda University Medical Center for treatment. Loma Linda physicians removed the brain tumor, and prescribed immediate proton beam therapy to reduce the chance of recurrence. FHP initially refused to authorize payment for the therapy, claiming it was experimental and unnecessary. Upon further review, FHP approved the therapy, but Parrino was diagnosed with a reoccurring tumor two days later. A second round of surgery failed to arrest the spread of the cancer, and Parrino ultimately succumbed to his illness.

Parrino filed suit in state court against FHP and Friendly Hills, alleging they improperly denied his initial claim for proton beam therapy. FHP and Friendly Hills removed the action to federal court on the ground that Parrino's state law causes of action were completely preempted by ERISA. The district court denied Parrino's motion to remand, and eventually dismissed each of his claims pursuant to Federal Rule of Civil Procedure 12(b)(6). Parrino's estate appeals.

I.

Parrino contends that removal was improper because (1) FHP and Friendly Hills failed to satisfy the procedural requirements for removal; (2) the district court lacked subject matter jurisdiction; and (3) the district court improperly considered an extrinsic document in determining whether it had subject matter jurisdiction. FHP and Friendly Hills counter that Parrino waived his right to appeal the district court's refusal to remand by failing to pursue interlocutory review. We hold that Parrino did not waive his claims challenging removal, but that those claims ultimately fail.

A.

FHP and Friendly Hills argue that circuit precedent required Parrino to seek permission to take an interlocutory appeal under 28 U.S.C. § 1292(b) to preserve his objections to removal, citing, inter alia, Sorosky v. Burroughs Corp., 826 F.2d 794, 798 (9th Cir.1987). This rule was noted and explicitly rejected, however, by Caterpillar, Inc. v. Lewis, 519 U.S. 61, 117 S.Ct. 467, 475, 136 L.Ed.2d 437 (1996). Under Caterpillar, Parrino preserved his objections to removal by moving to remand.

B.

Parrino argues the procedural requirements for removal were not satisfied because Friendly Hills did not join FHP's removal notice until nearly two months after service of Parrino's complaint. All defendants must join a notice of removal, see Emrich v. Touche Ross & Co., 846 F.2d 1190, 1193 n. 1 (9th Cir.1988), and a proper removal notice must be filed within 30 days of service of the plaintiff's complaint, see 28 U.S.C. § 1446(b). Under Caterpillar, however, a procedural defect existing at the time of removal but cured prior to entry of judgment does not warrant reversal and remand of the matter to state court. See 117 S.Ct. at 477 ("To wipe out the adjudication post-judgment, and return to state court a case now satisfying all federal jurisdictional requirements, would impose an exorbitant cost on our dual court system, a cost incompatible with the fair and unprotracted administration of justice.").1 Because Friendly Hills' initial failure to join in the notice of removal was cured when Friendly Hills later joined in the notice, remand on procedural grounds would be an empty formality.

C.

Parrino contends the district court erred in concluding it had removal jurisdiction because ERISA completely preempted Parrino's causes of action. Section 502(a)(1)(B) of ERISA provides an exclusively federal remedy for ERISA plan "participants" seeking to recover benefits due under the terms of their plans, to enforce their rights under the plan, or to clarify their rights to future benefits under the plan. See 29 U.S.C. § 1132(a)(1)(B). State causes of action subject to this provision are completely preempted, and will be recharacterized as federal claims for purposes of removal. See Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58, 64-65, 107 S.Ct. 1542, 95 L.Ed.2d 55 (1987). Because Parrino was a participant in an ERISA plan, and at least some of his claims fall within the scope of Section 502(a)(1)(B), they were completely preempted.

An ERISA plan exists "if from the surrounding circumstances a reasonable person can ascertain the intended benefits, a class of beneficiaries, the source of financing, and procedures for receiving benefits." Carver v. Westinghouse Hanford Co., 951 F.2d 1083, 1086 (9th Cir.1991) (citation and internal quotations omitted). As we have explained, "[e]ven if an employer does no more than arrange for a 'group-type insurance program,' it can establish an ERISA plan, unless it is a mere advertiser who makes no contributions on behalf of its employees." Credit Managers Ass'n of Southern Cal. v. Kennesaw Life & Accident Ins. Co., 809 F.2d 617, 625 (9th Cir.1987). Because the plan covering Parrino was sponsored and paid for by Parrino's employer, and covered all of the firm's full-time employees, it was an employee benefits plan under ERISA. Parrino qualifies as a "participant" in this plan because at the time he filed suit he was an employee or former employee "eligible to receive a benefit ... from an employee benefit plan which cover[ed] employees" of Parrino Trucking.

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