Benton v. Vanderbilt University

118 F. Supp. 2d 877, 2000 U.S. Dist. LEXIS 15915, 2000 WL 1610301
District Court, M.D. Tennessee·Decided October 24, 2000·No. 3-99-0796·Published·Cited by 1 cases

Opinion

MEMORANDUM

TRAUGER, District Judge.

Pending before the court is the plaintiffs Motion to Remand for lack of Subject Matter Jurisdiction (Docket No. 11) and the defendant’s Response (Docket No. 17). For the reasons stated herein, the plaintiffs motion will be GRANTED.

I. Facts and Procedural History

On December 13, 1998, the plaintiff was injured in an automobile accident, when the car in which he was a passenger was struck by a vehicle driven by Zella Lynn. (Docket No. 1, attach. Ex. A, paras. 2-2.1) Mr. Benton’s injuries required hospitalization and prolonged physical therapy. Id., *879 para. 2.1. Mr. Benton has medical insurance through his employer, Bridge-stone/Firestone, which is provided through Blue Cross/Blue Shield of Tennessee (“BCBST”). Id., para. 2.3.

Mr. Benton’s injuries were treated at Vanderbilt Hospital (“Vanderbilt”), which has signed an Institutional Agreement (“Agreement”) with BCBST to serve as a Preferred Provider in its Preferred Provider Network. Id., paras. 2.4-2.5. Under the terms of that Agreement, Vanderbilt agreed to provide medical services to BCBST plan members and to seek reimbursement from BCBST. (Docket No. 21, Aff. Sheri Haun, attach. Ex. A, para. 6.1) In exchange for becoming a Preferred Provider, Vanderbilt agreed to accept a reduced amount as payment for the provided services than would otherwise be charged. Id. According to section 6.1 of the Agreement,

[s]uch reimbursement as is described in this section shall represent the maximum amount payable to [Vanderbilt] for Covered Services and [Vanderbilt] shall not bill any BCBST Member for any contractual difference between billed charges and such reimbursement. [Vanderbilt] agrees that in no event, including, but not limited to, non-payment by BCBST (including non-payment as a result of [Vanderbilt’s] failure to submit charges in accordance with Section 6.8), rebundling or down coding of charges by BCBST (as provided in Section 6.8), BCBST’s insolvency, or breach of this Agreement, shall [Vanderbilt] bill, charge, collect a deposit from, seek compensation from, or have any recourse against BCBST Members or persons, other than BCBST, acting on behalf of BCBST Members, for Covered Services provided pursuant to this Agreement.

Id. In addition, section 6.2 provides that the “only charges for which a BCBST Member may be liable and be billed shall be those [Vanderbilt] services not covered under the applicable Member Benefit Agreement or for applicable deductibles, copayments and/or coinsurance.” Id., para. 6.2. The plaintiff claims that the defendant, Vanderbilt, did not bill BCBST for the medical services provided to him as a result of his accident. (Docket No. 1, attach. Ex. A, para. 2.7)

The plaintiff filed a civil suit against Lynn in Coffee County Circuit Court, and Lynn has apparently admitted liability for the automobile accident. Id. at 2.2. On January 25, 1999, Vanderbilt filed a hospital lien under T.C.A. § 29-22-101, et seq., against any settlement or judgment recovered by Benton in the suit against Lynn. Id. at 2.6; Docket No. 1, para. 2.6.

On July 13, 1999, the plaintiff filed a class action suit against Vanderbilt in the Circuit Court for Davidson County, Tennessee for abuse of process and breach of contract. The plaintiff alleges that Vanderbilt’s hospital lien has injured his financial standing and interfered with his right to compromise and to settle his tort claim against Mr. Lynn. In addition, the plaintiff claims that the filing of the lien was a breach of the Agreement between BCBST and Vanderbilt, and that, as a third party beneficiary of that Agreement, the plaintiff was injured by the breach.

On August 18, 1999, Vanderbilt removed the case from Davidson County Circuit Court to this court. (Docket No. 1) Vanderbilt claims that this court has original subject matter jurisdiction pursuant to 28 U.S.C. § 1331, because all or part of the relief sought by the plaintiff arises under the laws of the United States, including the Employment Retirement Income Security Act of 1974 (“ERISA”), 29 U.S.C. § 1001, et seq. Id. The plaintiff filed a motion to remand the case for lack of subject matter jurisdiction on the grounds that the plaintiffs claims are solely state claims. (Docket No. 11) The defendant has responded that the case is a superseding ERISA action under the civil enforcement provisions of 29 U.S.C. § 1132(a) and is thus removable to federal court as a federal cause of action. (Docket No. 17)

*880 II. Analysis

Under 28 U.S.C. § 1441(a), “any civil action brought in a State court of which the district courts of the United States have original jurisdiction, may be removed by the defendant or the defendants, to the district court of the United States for the district and division embracing the place where such action is pending.” The district courts have original jurisdiction over “federal question” cases, those cases “arising under the Constitution, laws or treaties of the United States.” 28 U.S.C. § 1381. The defendant removed this case from the Davidson County Circuit Court on the ground that this case presents a federal question regarding an ERISA claim.

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Benton v. Vanderbilt University, 118 F. Supp. 2d 877, 2000 U.S. Dist. LEXIS 15915, 2000 WL 1610301 (M.D. Tenn. 2000).

118 F. Supp. 2d 877 (Benton v. Vanderbilt University) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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