ABIRA MEDICAL LABORATORIES, LLC v. ALLEGIANCE BENEFIT PLAN MANAGEMENT

CourtDistrict Court, D. New Jersey
DecidedSeptember 30, 2024
Docket3:23-cv-14167
StatusUnknown

This text of ABIRA MEDICAL LABORATORIES, LLC v. ALLEGIANCE BENEFIT PLAN MANAGEMENT (ABIRA MEDICAL LABORATORIES, LLC v. ALLEGIANCE BENEFIT PLAN MANAGEMENT) 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.

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ABIRA MEDICAL LABORATORIES, LLC v. ALLEGIANCE BENEFIT PLAN MANAGEMENT, (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NOT FOR PUBLICATION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. 23-14167 (GC) (JBD) v. OPINION ALLEGIANCE BENEFIT PLAN MANAGEMENT, et al.,

Defendants.

CASTNER, District Judge

THIS MATTER comes before the Court upon Defendant Allegiance Benefit Plan Management’s Motion to Dismiss for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure (Rule) 12(b)(2) and for failure to state a claim pursuant to Rule 12(b)(6). (ECF No. 17.) Plaintiff opposed, and Defendant replied. (ECF Nos. 20 & 21.) The Court has carefully considered the parties’ 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, which [Plaintiff] performed for the insureds/claimants.” (ECF No. 10 ¶ 1.) Plaintiff “is a domestic limited liability company organized under the laws of the State of New Jersey.” (Id. ¶ 10.) 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. ¶ 11.) 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,” for “numerous insureds/claimants located throughout the United States.” (Id. ¶¶ 32-33.) Defendant has its principal place of business in Missoula, Montana. (Id. ¶ 12.) 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. ¶¶ 35-

38.) The amount due for these services is alleged to total $26,851.00. (Id. ¶ 8.) Plaintiff does not identify the individual insureds/claimants or how many insureds/claimants are involved in this case, the type of health insurance plans under which the insureds/claimants were covered, or any specific provisions in any plan that entitles the insureds/claimants to benefits from Defendant. 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 and diversity jurisdiction pursuant to 28 U.S.C. § 1332. (See ECF No. 1.) The original Complaint asserted six common-law claims, as well as claims for violations of the Families First Coronavirus Response Act (FFCRA), the Coronavirus Aid, Relief, Economic Security (CARES) Act, and the New Jersey Consumer Fraud Act (NJCFA); it also sought treble damages in the amount of $154,365.00. (See ECF No. 1-1 ¶¶ 29-84.) On October 26, 2023, Plaintiff filed the Amended Complaint, which is the operative pleading. (ECF No. 10.) The Amended Complaint seeks $26,851.00 in damages and asserts seven causes of action against Defendant and unnamed entities/persons: Count One for breach of

contract; Count Two for breach of the 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; and Count Seven for quantum meruit/unjust enrichment.1 (Id. ¶¶ 8, 49-105.) On March 1, 2024, Defendant moved to dismiss the Amended Complaint pursuant to Rules 12(b)(2) and 12(b)(6). (ECF No. 17.) Plaintiff opposed on April 1, and Defendant replied on April 8. (ECF Nos. 20 & 21.) II. LEGAL STANDARD2

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

1 Unlike the original Complaint, the Amended Complaint no longer seeks treble damages, and therefore does not appear to allege an amount in controversy that satisfies § 1332. Nor does it bring a claim under the FFCRA and CARES Act or other federal cause of action. Defendant argues that this Court has subject-matter jurisdiction “because Plaintiff’s claims are subject to complete preemption under [ERISA],” while Plaintiff contends that the Court lacks subject-matter jurisdiction. (ECF No. 29 at 1; ECF No. 28 at 3.) But “a court may dismiss for lack of personal jurisdiction without first establishing subject-matter jurisdiction” in appropriate circumstances. See Sinochem Intern. Co. Ltd. v. Malaysia Intern. Shipping Corp., 549 U.S. 422, 431 (2007) (citing Ruhrgas AG v. Marathon Oil Co., 526 U.S. 574, 587-88 (1999) (holding that a district court does not abuse its discretion by turning directly to straightforward issues of personal jurisdiction before reaching more complex questions of subject-matter jurisdiction)). Here, because there is no “mandatory sequencing of jurisdictional issues,” the Court will resolve the parties’ arguments regarding personal jurisdiction before it reaches the issues regarding subject-matter jurisdiction. See id.

2 Because the Court determines that it lacks personal jurisdiction and does not reach the 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.

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ABIRA MEDICAL LABORATORIES, LLC v. ALLEGIANCE BENEFIT PLAN MANAGEMENT, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abira-medical-laboratories-llc-v-allegiance-benefit-plan-management-njd-2024.