Burton v. William Beaumont Hospital

373 F. Supp. 2d 707, 2005 U.S. Dist. LEXIS 11879, 2005 WL 1422232
CourtDistrict Court, E.D. Michigan
DecidedJune 20, 2005
Docket04-72735
StatusPublished
Cited by37 cases

This text of 373 F. Supp. 2d 707 (Burton v. William Beaumont Hospital) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burton v. William Beaumont Hospital, 373 F. Supp. 2d 707, 2005 U.S. Dist. LEXIS 11879, 2005 WL 1422232 (E.D. Mich. 2005).

Opinion

MEMORANDUM AND ORDER GRANTING DEFENDANTS’ MOTION TO DISMISS COUNT ONE OF THE FIRST AMENDED COMPLAINT, GRANTING DEFENDANTS’ MOTION FOR JUDGMENT ON THE PLEADINGS AS TO STATE LAW COUNTS, AND DISMISSING CASE

COHN, District Judge.

I. Introduction

This is a putative class action healthcare case. 1 Plaintiffs Jennifer Burton; Francis Burton; and Niaya Burton 2 (collectively referred to as the Burtons); Arnold Wood (Wood); and Freddie Kennedy-Neal (Kennedy-Neal) are suing Defendants William Beaumont Hospital and Beaumont Properties, Inc. (collectively referred to as Beaumont); and American Hospital Association (AHA).

Plaintiffs assert the following claims in the first amended complaint:

Count Claim

1 Violations of the Emergency Medical Treatment and Active Labor Act (EMTALA), 42 U.S.C. § 1395dd;
2 Breach of Contract Under Michigan Law;
3 Violation of the Michigan Consumer Protection Act (MCPA), MICH. COMP. LAWS § 445.901 et seq.;
4 Unjust Enriehment/Constructive Trust Under Michigan Law;
5 Declaratory Judgment/Injunctive Relief Under Michigan Law;
6 Breach of Fiduciary Duties Under Michigan Law;
7 Civil Conspiracy/Concert of Action; and
8 Aiding and Abetting. 3

Before the Court are (1) Beaumont’s Motion to Dismiss Count One of the First Amended Complaint and (2) Beaumont’s Motion for Judgment on the Pleadings as to State Law Counts (Counts Two through Six). For the reasons that follow, the motions are GRANTED and this case is DISMISSED. The remaining pending matters in this case, namely (1) Plaintiffs’ Motion for Class Certification and (2) Plaintiffs’ Motion to Compel, are DISMISSED AS MOOT.

II. Background

A. Factual Background 1. Plaintiffs’ General Allegations

Plaintiffs have previously been patients *710 at William Beaumont Hospital. 4 They were, in some instances, uninsured when they sought treatment at Beaumont. They say they chose Beaumont for medical care “because it is their community nonprofit hospital,” Am. Compl. at ¶ 1, and “because they believed that Beaumont is a nonprofit ‘charitable’ hospital.” Id. at ¶ 5. Plaintiffs claim that Beaumont charges uninsured patients rates that are significantly higher than the rates charged insured patients or patients covered by Medicare or Medicaid. Id. at ¶ 8. In addition to what plaintiffs say is “price gougfing],” id. at ¶ 7, “overbilling after the fact,” id. at ¶ 20, and “discrimination against the vulnerable,” id. at ¶ 25, plaintiffs complain that Beaumont requires uninsured patients to sign a form contract promising to pay Beaumont in full for their medical care. Id. at ¶ 20. Plaintiffs say that Beaumont “months or years later” uses this form contract as a basis for recovering “inflated amounts” from uninsured patients. Id. at ¶ 21.

2. The Named Plaintiffs

a. Jennifer Burton

Jennifer Burton, a resident of Detroit, Michigan, was treated at Beaumont on three occasions.

In the summer of 2002, she went to the emergency room at Royal Oak Beaumont. Id. at ¶ 42. She presented a severe headache and flu-like symptoms. Id. She had to sign forms upon admission that guaranteed she would pay the medical charges, and then she waited to be evaluated and treated. Id. Once she was seen, it was determined that she did not have a serious condition. Id. Hospital staff gave her Motrin for her headache and discharged her. Id.

Jennifer Burton went to Royal Oak Beaumont in early 2003 for the same symptoms, i.e., a headache and flu-like symptoms. Id. at ¶ 43. She says that she again was required to sign forms upon admission that guaranteed payment of her medical charges. Id. She says that she had to wait for approximately an hour and a half before she was called to the screening and treatment area. Id. As with her first visit, she was given Motrin and discharged. Id.

Finally, Jennifer Burton went to Troy Beaumont in late 2003 for severe back and abdominal pain. Id. at ¶ 44. She again had to sign forms upon admission that guaranteed payment of her medical charges. Id. She was given an injection for pain and discharged. Id.

Jennifer Burton says that Beaumont “billed her excessive and inflated rates” for her medical care. Id. at ¶ 45. 5 She also says that Beaumont “aggressively pursued the collection of these inflated charges from Ms. Burton.” Id. at ¶ 46. She says Beaumont “sent numerous harassing bills and collection letters, and threatened to damage her credit due to her medical debt if she did not pay the entire inflated bill.” Id. 6

*711 b. Niaya Burton

Francis Burton took her minor daughter, Niaya Burton, to Royal Oak Beaumont for symptoms of asthma and bronchitis. Am. Compl. at ¶¶ 47-49. Francis was required to sign forms upon admission that guaranteed payment of medical charges before Niaya was evaluated or treated. Id. at ¶ 51. The first amended complaint says she was billed “inflated charges” for the daughter’s medical care and that Beaumont “aggressively pursued the collection of these inflated charges from Ms. Burton” through “numerous harassing bills and collection letters” and threats to “damage her credit due to her medical debt.” Id. at ¶ 52. Beaumont obtained a judgment against Francis Burton in January 2004 in the amount of $2,632.00 for her medical debt. Id. at ¶ 53.

c. Arnold Woods

Arnold Woods was admitted to Royal Oak Beaumont’s emergency room on November 12, 2001. Id. at ¶ 56. He presented complaints of low back pain, which he says may have been related to previous injuries he sustained in a car accident. Id. He says that he was required to sign forms upon admission that guaranteed payment of his medical charges. Id. He also says that he “sat in the hall for hours” before he was evaluated and treated. Id. His medical records reflect an admission time of 11:15 p.m., which he says was “hours after [he] arrived at the ER.”

Related

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Bluebook (online)
373 F. Supp. 2d 707, 2005 U.S. Dist. LEXIS 11879, 2005 WL 1422232, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burton-v-william-beaumont-hospital-mied-2005.