ABIRA MEDICAL LABORATORIES, LLC v. COMMUNITY HEALTH CHOICE, INC.

CourtDistrict Court, D. New Jersey
DecidedAugust 22, 2024
Docket3:23-cv-03757
StatusUnknown

This text of ABIRA MEDICAL LABORATORIES, LLC v. COMMUNITY HEALTH CHOICE, INC. (ABIRA MEDICAL LABORATORIES, LLC v. COMMUNITY HEALTH CHOICE, 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, LLC v. COMMUNITY HEALTH CHOICE, 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NOT FOR PUBLICATION UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY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. 23-03757 (GC) (TJB) v. OPINION COMMUNITY HEALTH CHOICE, INC. d/b/a COMMUNITY HEALTH CHOICE, ef al., Defendants.

CASTNER, U.S.D.J. THIS MATTER comes before the Court upon Defendant Community Health. Choice, 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. 30.) Plaintiff Abira Medical Laboratories, LLC, opposed, and Defendant replied. (ECF Nos. 32 & 35.) 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, 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.” (Ud. J 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.” (/d. J 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.” (Ud. [J 27-28.) Defendant Community Health Choice, Inc., has its principal place of business in Houston, Texas. (Ud. | 12.) Plaintiff alleges that Defendant “provides health insurance services throughout New Jersey.” (/d.) 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, or typically, negotiate a reasonable fee.” (Ud. [§[ 31-35.) The amount due for these unpaid claims is alleged to total about $283,339.37. (Ud. 9 8, 51-52.) The alleged “dates of service for the claim ... are all from 2016,” and Plaintiff alleges that Defendant “actually paid [Plaintiff] at one point in 2016.” Ud. JJ 39-40.) 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. Plaintiff states that its claims are brought pursuant to the Employee Retirement Income Security Act of 1974 (“ERISA”), but it then asserts seven common-law 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; and Count Seven for quantum meruit/unjust enrichment. Ud. 41-106.) 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.) Plaintiff filed an Amended Complaint on October 13, 2023, which eliminated the federal statutory claims and retained only the common-law claims.’ (ECF No. 16.) On March 1, 2024, Defendant moved to dismiss the Amended Complaint pursuant to Rules 12(b)(2) and 12(b)(6). (ECF No. 30.) Plaintiff opposed on April 1, and Defendant replied on April 15. (ECF Nos. 26 & 28.) I. LEGAL STANDARD? 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.’’).

Diversity jurisdiction exists because the parties are diverse and the amount in controversy exceeds $75,000.00. 28 U.S.C. § 1332. 2 Because the Court determines that it lacks personal jurisdiction and does not reach the motion to dismiss for failure to state a claim, the Rule 12(b)(6) standard is not recited. See Lightfoot vy. Cendant Mortg. Corp., 580 U.S. 82, 95 (2017) (“A court must have .. . power over the parties before it (personal jurisdiction) before it can resolve a case.”),

“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’! 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 (Z.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., 582 U.S. 255, 262 (2017). For foreign corporations, a “court may assert general jurisdiction . . . to hear any and all claims against them when their affiliations with the [forum] State are so ‘continuous and systematic’ as to render them essentially at home in the forum State.” Fischer vy, Fed. Express Corp., 42. F 4th 366, 384 (3d Cir. 2022) (quoting Goodyear Dunlop Tires Operations, S.A. v.

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ABIRA MEDICAL LABORATORIES, LLC v. COMMUNITY HEALTH CHOICE, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/abira-medical-laboratories-llc-v-community-health-choice-inc-njd-2024.