ABIRA MEDICAL LABORATORIES, LLC v. INDEPENDENT HEALTH ASSOCIATION, INC.

CourtDistrict Court, D. New Jersey
DecidedJuly 29, 2024
Docket3:23-cv-04649
StatusUnknown

This text of ABIRA MEDICAL LABORATORIES, LLC v. INDEPENDENT HEALTH ASSOCIATION, INC. (ABIRA MEDICAL LABORATORIES, LLC v. INDEPENDENT HEALTH ASSOCIATION, 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.

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ABIRA MEDICAL LABORATORIES, LLC v. INDEPENDENT HEALTH ASSOCIATION, 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NOT FOR PUBLICATION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. 23-04649 (GC) (JTQ) v. OPINION INDEPENDENT HEALTH ASSOCIATION, INC., et al.,

Defendants.

CASTNER, U.S.D.J.

THIS MATTER comes before the Court upon Defendant Independent Health Association, Inc.’s Motion to Dismiss for lack of personal jurisdiction pursuant to Federal Rule of Civil Procedure (Rule) 12(b)(2), for improper venue pursuant to Rule 12(b)(3), and for failure to state a claim pursuant to Rule 12(b)(6). (ECF No. 12.) Plaintiff opposed, and Defendant replied. (ECF Nos. 13 & 17.) 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. 4 ¶ 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.) Defendant has its principal place of business in Buffalo, New York. (Id. ¶ 12.) Plaintiff alleges that Defendant “provides health insurance services throughout New Jersey.” (Id.) 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” for “numerous insureds/claimants located throughout the United States.” (Id. ¶¶ 27-28.) 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. ¶¶ 32-35.) The amount due for these “services rendered by [Plaintiff] to . . .

insureds/claimants” is alleged to total $106,374.00. (Id. ¶¶ 47-48.) 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 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. (Id. ¶¶ 39-89.) This case was removed to this Court from the Superior Court of New Jersey, Mercer County, Law Division, based on federal question jurisdiction1 pursuant to 28 U.S.C. § 1331 and diversity jurisdiction pursuant to 28 U.S.C. § 1332. (ECF No. 1.) On September 18, 2023, Defendant moved to dismiss the original Complaint. (ECF No. 3.) On September 29, Plaintiff filed the Amended Complaint, which is the operative pleading. (ECF No. 4.) On December 8,

Defendant moved to dismiss the Amended Complaint pursuant to Rules 12(b)(2), 12(b)(3), and 12(b)(6). (ECF No. 12.) Plaintiff opposed on December 21, and Defendant replied on January 29, 2024. (ECF Nos. 13 & 17.) 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

1 The original Complaint brought claims under the Families First Coronavirus Response Act (FFCRA) and the Coronavirus Aid, Relief, Economic Security (CARES) Act, which are not present in the Amended Complaint. (See ECF No. 1 ¶ 9; ECF No. 4.)

2 Because the Court determines that it lacks personal jurisdiction and does not reach the improper venue or failure to state a claim arguments, the standards for Rules 12(b)(3) and 12(b)(6) are not recited. See Lightfoot v. Cendant Mortg. Corp., 580 U.S. 82, 95 (2017) (“A court must 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., 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 v. Fed. Express Corp., 42 F.4th 366, 384 (3d Cir. 2022) (quoting Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 919 (2011)). To assert specific jurisdiction over a foreign corporation there are two primary elements that must be met: “First, there must be purposeful

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ABIRA MEDICAL LABORATORIES, LLC v. INDEPENDENT HEALTH ASSOCIATION, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/abira-medical-laboratories-llc-v-independent-health-association-inc-njd-2024.