ABIRA MEDICAL LABORATORIES, LLC v. AMERICAN PLAN ADMINISTRATORS, LLC

CourtDistrict Court, D. New Jersey
DecidedJuly 29, 2024
Docket3:23-cv-03732
StatusUnknown

This text of ABIRA MEDICAL LABORATORIES, LLC v. AMERICAN PLAN ADMINISTRATORS, LLC (ABIRA MEDICAL LABORATORIES, LLC v. AMERICAN PLAN ADMINISTRATORS, LLC) 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, LLC v. AMERICAN PLAN ADMINISTRATORS, LLC, (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NOT FOR PUBLICATION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. 23-03732 (GC) (RLS) v. OPINION AMERICAN PLAN ADMINISTRATORS, LLC, et al.,

Defendants.

CASTNER, U.S.D.J.

THIS MATTER comes before the Court upon Defendant American Plan Administrators, LLC’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. 17.) Plaintiff opposed, and Defendant replied. (ECF Nos. 30 & 31.) 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 and third-party administrators based on their alleged failure to pay Plaintiff for “laboratory testing of specimen for tens or hundreds of insureds,” including “testing services performed during the COVID-19 pandemic.” (ECF No. 14 ¶ 1.) Plaintiff “is a domestic limited liability company organized under the laws of the State of New Jersey.” (Id. ¶ 4.) 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. ¶ 5.) Plaintiff alleges that Defendant has its principal place of business in Collegeville, Pennsylvania1 and “provides health insurance services throughout New Jersey.” (Id. ¶ 6.) Plaintiff “operated a licensed medical testing laboratory business, which provided services nationwide” and “performed clinical laboratory, toxicology, pharmacy, genetics, and addiction rehabilitation testing services on specimen,” including “COVID-19 testing.” (Id. ¶¶ 17-19.) According to Plaintiff, when the “665 of insureds underlying this action submitted their . . . molecular swabs or blood samples” to Plaintiff for testing, the insureds also provided their health insurance information in order for Plaintiff “to bill the insurer, because the insurer is required under

the insurance contract or insurance plan, to pay for the insured’s laboratory tests.” (Id. ¶ 24.) Plaintiff contends that each insured “designated [Plaintiff] as an assignee of the insurance contract between the insured and the insurer,” which “put [Plaintiff] in privity of contract with the insurer, or alternatively, it made [Plaintiff] a beneficiary of that contract.” (Id. ¶ 25.) “[R]egardless of the legal reasoning,” Plaintiff argues, Defendant was supposed to compensate Plaintiff for “the laboratory testing services provided to the insureds.” (Id.) But Defendant “either failed to pay or underpaid [Plaintiff] for its services.” (Id. ¶ 43.) The amount due is alleged to total $133,000.00.

1 Defendant asserts that it has its principal place of business in Brooklyn, New York. (ECF No. 17-1 ¶ 8.) As discussed below, this discrepancy does not alter the Court’s personal jurisdiction (Id. ¶¶ 3.) Plaintiff does not identify the individual insureds/claimants 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. Plaintiff asserts eight 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 equitable and promissory estoppel; Count Six for quantum meruit/unjust enrichment; Count Seven for violations of the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, Economic Security (CARES) Act; and Count Eight for violations of the New Jersey Consumer Fraud Act, N.J. Stat. Ann. § 56:8-2. (Id. ¶¶ 33-90.) 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 August 23, 2023, pursuant to Rule 15(a)(1), Plaintiff filed the Amended Complaint,

which is the operative pleading. (ECF No. 14.) On September 6, Defendant moved to dismiss the Amended Complaint pursuant to Rules 12(b)(2) and 12(b)(6). (ECF No. 17.) On October 10, the Court referred the case to mediation and stayed the matter pending the outcome of mediation. (ECF No. 23.) On January 18, the matter appearing not to have resolved, the Court terminated the stay and directed the parties to complete briefing on the Motion to Dismiss. (ECF No. 29.) Plaintiff opposed on February 6, and Defendant replied on February 13. (ECF Nos. 30 & 31.) 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 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)). A district court can assert either general jurisdiction (i.e., “all-purpose” jurisdiction) or specific jurisdiction (i.e., “case-linked” jurisdiction) over a defendant that has minimum contacts with the forum. See Bristol-Myers Squibb Co. v. Superior Ct. of California, San Francisco Cnty.,

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ABIRA MEDICAL LABORATORIES, LLC v. AMERICAN PLAN ADMINISTRATORS, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abira-medical-laboratories-llc-v-american-plan-administrators-llc-njd-2024.