ABIRA MEDICAL LABORATORIES LL v. CORESOURCE, INC.

CourtDistrict Court, D. New Jersey
DecidedAugust 28, 2024
Docket3:23-cv-03777
StatusUnknown

This text of ABIRA MEDICAL LABORATORIES LL v. CORESOURCE, INC. (ABIRA MEDICAL LABORATORIES LL v. CORESOURCE, INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ABIRA MEDICAL LABORATORIES LL v. CORESOURCE, INC., (D.N.J. 2024).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

ABIRA MEDICAL LABORATORIES, LLC d/b/a GENESIS DIAGNOSTICS,

Plaintiff, Civil Action No. 23-03777 (GC) (TJB) v. OPINION CORESOURCE, INC., et al.,

Defendants.

CASTNER, U.S.D.J.

THIS MATTER comes before the Court upon Defendant CoreSource, Inc.’s Motion to Dismiss for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure (“Rule”) 12(b)(2) or for failure to state a claim pursuant to Rule 12(b)(6). (ECF No. 3.) Plaintiff Abira Medical Laboratories, LLC, opposed, and Defendant replied. (ECF Nos. 26 & 29.) The Court carefully considered the submissions and decides the matter without oral argument pursuant to Rule 78(b) and Local Civil Rule 78.1(b). For the reasons set forth below, and other good cause shown, Defendant’s motion is GRANTED in part and DENIED in part. The case is DISMISSED due to lack of personal jurisdiction. I. BACKGROUND

This is one of more than forty cases that Plaintiff Abira Medical Laboratories, LLC, has filed in the United States District Court for the District of New Jersey or had removed here from the Superior Court of New Jersey since June 2023. In each of these cases, Plaintiff sues “health insurance companies, third-party administrators, health and welfare funds, or . . . self-insured employers” based on their alleged failure to pay Plaintiff “for laboratory testing of specimen, including but not limited to COVID-19 tests, which [Plaintiff] performed for the insureds/claimants.” (ECF No. 16 ¶ 1.) Plaintiff “is a domestic limited liability company organized under the laws of the State of New Jersey.” (Id. ¶ 11.) Several of Plaintiff’s “administrators and decision-makers live in New

Jersey, work in New Jersey, and run [Plaintiff’s] affairs from New Jersey.” (Id. ¶ 12.) Plaintiff “operated a licensed medical testing laboratory business, which provided services nationwide,” and Plaintiff “performed clinical laboratory, toxicology, pharmacy, genetics, and addiction rehabilitation testing services on specimen,” including “COVID-19 testing.” (Id. ¶¶ 29-31.) Plaintiff alleges that Defendant CoreSource, Inc., has its principal place of business in Sterling Heights, Michigan.1 (Id. ¶ 13.) Plaintiff alleges that Defendant “provides health insurance services throughout New Jersey.” (Id.) Plaintiff alleges that it submitted “claims” for laboratory testing to Defendant that “were supposed to” be paid “pursuant to Abira’s fee schedule or the insurer’s fee schedule.” (Id. ¶¶ 37-

40.) The amount due for these “services rendered by [Plaintiff] to . . . insureds/claimants” is alleged to total $289,678. (Id. ¶¶ 9, 69-70.) Plaintiff alleges that the dates of service for the more than 110 claims underlying the case “are from 2016 through 2020.” (Id. ¶¶ 7, 44.) Plaintiff does not identify the individual insureds/claimants, the type of health insurance plans under which the

1 With the notice of removal, Defendant submitted a declaration from Lloyd Sarrel, Vice President of Operations, who declared under penalty of perjury that CoreSource was known as Trustmark Health Benefits, Inc., a Delaware corporation with its principal place of business in Lake Forest, Illinois. (ECF No. 1 at 6.) With its reply, Defendant submitted a declaration from Jennifer Roller, Vice President of Operations, who declares under penalty of perjury that Trustmark is now known as Luminare Health Benefits, Inc., a Delaware corporation with its insureds/claimants were covered, or any specific provisions in any plan that entitles the insureds/claimants to benefits from Defendant. Plaintiff asserts eight causes of action against Defendant, its affiliates, and unnamed entities/persons: Count One for breach of contract; Count Two for breach of implied covenant of good faith and fair dealing; Count Three for fraudulent misrepresentation; Count Four for negligent

misrepresentation; Count Five for promissory estoppel; Count Six for equitable estoppel; Count Seven for quantum meruit/unjust enrichment; and Count Eight for violations of the Families First Coronavirus Response Act (“FFCRA”) and the Coronavirus Aid, Relief, Economic Security (“CARES”) Act. (Id. ¶¶ 60-132.) This case was removed to this Court from the Superior Court of New Jersey, Mercer County, Law Division, based on federal question jurisdiction pursuant to 28 U.S.C. § 1331 as well as diversity jurisdiction pursuant to 28 U.S.C. § 1332. (See ECF No. 1.) On July 21, 2023, Defendant moved to dismiss the original Complaint pursuant to Rules 12(b)(2) and 12(b)(6). (ECF No. 3.) The Court initially terminated the motion and referred the parties to mediation. (ECF Nos.

6 & 14.) On October 13, 2023, Plaintiff filed the Amended Complaint. (ECF No. 16.) When the matter did not resolve in mediation, the Court activated the motion to dismiss that had been terminated.2 (ECF No. 23.) Plaintiff opposed the motion to dismiss on March 18, 2024, and Defendant replied on March 28. (ECF Nos. 26 & 29.)

2 Although the Amended Complaint was filed after the motion to dismiss, the allegations as to personal jurisdiction did not meaningfully change between the two pleadings, and the Court can decide the motion without requiring it to be refiled. See, e.g., MSA Prod., Inc. v. Nifty Home Prod., Inc., 883 F. Supp. 2d 535, 539 (D.N.J. 2012) (“The filing of an amended pleading does not render a motion to dismiss moot. While the Court could order Defendants to file a supplemental motion to dismiss incorporating by reference all prior arguments, there is no benefit in forcing such a II. LEGAL STANDARD3

Rule 12(b)(2) permits a defendant to move to dismiss a complaint for lack of personal jurisdiction. Fed. R. Civ. P. 12(b)(2). When a statute does not authorize nationwide service of process, federal courts in New Jersey exercise personal jurisdiction to the extent permitted by New Jersey law. See Eurofins Pharma US Holdings v. BioAlliance Pharma SA, 623 F.3d 147, 155 (3d Cir. 2010) (“[A] federal district court may assert personal jurisdiction over a nonresident of the state in which the court sits to the extent authorized by the law of that state.”). “New Jersey’s long-arm statute provides for jurisdiction coextensive with the due process requirements of the United States Constitution.” Miller Yacht Sales, Inc. v. Smith, 384 F.3d 93, 96 (3d Cir. 2004) (first citing N.J. Court Rule 4:4-4(c); and then citing Charles Gendler & Co. v. Telecom Equip. Corp., 508 A.2d 1127, 1131 (N.J. 1986)). Therefore, the key inquiry on a motion to dismiss for lack of personal jurisdiction is whether, under the Due Process Clause, “the defendant has certain minimum contacts with . . . [New Jersey] such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.” O’Connor v. Sandy

Lane Hotel Co., 496 F.3d 312, 316 (3d Cir. 2007) (quoting Int’l Shoe Co. v. State of Wash., Off. of Unemployment Comp. & Placement, 326 U.S. 310, 316 (1945)).

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ABIRA MEDICAL LABORATORIES LL v. CORESOURCE, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/abira-medical-laboratories-ll-v-coresource-inc-njd-2024.