ABIRA MEDICAL LABORATORIES, LLC v. MEDCOST, LLC

CourtDistrict Court, D. New Jersey
DecidedJune 26, 2024
Docket3:23-cv-10864
StatusUnknown

This text of ABIRA MEDICAL LABORATORIES, LLC v. MEDCOST, LLC (ABIRA MEDICAL LABORATORIES, LLC v. MEDCOST, 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. MEDCOST, 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NOT FOR PUBLICATION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. 23-10864 (GC) (RLS) v. OPINION MEDCOST, LLC, et al.,

Defendants.

CASTNER, U.S.D.J.

THIS MATTER comes before the Court upon the 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) filed by Defendants MedCost, LLC and MedCost Benefit Services, LLC. (ECF No. 14.) Plaintiff opposed, and Defendants replied. (ECF Nos. 18 & 19.) After briefing was complete, Defendants submitted correspondence related to additional legal authorities. (ECF No. 23.) 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, Defendants’ 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. 11 ¶ 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.) Defendants MedCost, LLC and MedCost Benefit Services, LLC have their principal places of business in Winston-Salem, North Carolina. (Id. ¶¶ 13-14.) Plaintiff alleges that each Defendant “provides health insurance services throughout New Jersey.” (Id.) Plaintiff alleges that it submitted “claims” for laboratory testing to Defendants that “were

supposed to” be paid “pursuant to Abira’s fee schedule or the insurer’s fee schedule.” (Id. ¶¶ 40- 43.) The dates of service for the claims “are from 2016 through 2021.” (Id. ¶ 44.) Defendants intermittently processed and paid some claims in 2019, 2020, and 2021, but have not paid the bulk of Abira’s claims for payment. (Id. ¶ 45.) The amount due for these “services rendered by Abira to . . . insureds/claimants” is alleged to total $92,249.62. (Id. ¶¶ 9, 69-70.) 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 Defendants. Plaintiff asserts eight causes of action against Defendants 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; 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. ¶¶ 60-134.)

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 October 6, 2023, Defendants moved to dismiss the original Complaint. (ECF No. 9.) On October 12, Plaintiff filed the Amended Complaint, which is the operative pleading. (ECF No. 11.) On November 9, Defendants moved to dismiss the Amended Complaint pursuant to Rules 12(b)(2) and 12(b)(6). (ECF No. 14.) Plaintiff opposed on November 27, and Defendants replied on December 11. (ECF Nos. 18 & 19.) After briefing was complete, Defendants submitted correspondence related to additional legal authorities. (ECF No. 23.)

II. LEGAL STANDARD1

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

1 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 v. Cendant Mortg. Corp., 580 U.S. 82, 95 (2017) (“A court must have . . . power over 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., 582 U.S. 255, 262 (2017). For foreign corporations, a “court may assert general jurisdiction . . .

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ABIRA MEDICAL LABORATORIES, LLC v. MEDCOST, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abira-medical-laboratories-llc-v-medcost-llc-njd-2024.