Dyer v. Air Methods Corporation

CourtDistrict Court, D. South Carolina
DecidedMay 7, 2021
Docket9:20-cv-02309
StatusUnknown

This text of Dyer v. Air Methods Corporation (Dyer v. Air Methods Corporation) is published on Counsel Stack Legal Research, covering District Court, D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dyer v. Air Methods Corporation, (D.S.C. 2021).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF SOUTH CAROLINA CHARLESTON DIVISION

VAUGHN DYER, individually and on behalf of ) others similarly situated, ) ) Plaintiff, ) ) No. 9:20-cv-2309-DCN vs. ) ) ORDER AIR METHODS CORPORATIONS and ) ROCKY MOUNTAIN HOLDINGS, LLC, ) ) Defendants. ) _______________________________________)

The following matter is before the court on defendants Air Methods Corporations (“Air Methods”) and Rocky Mountain Holdings, LLC’s (collectively, “defendants”) motion to strike class allegations, ECF No. 42. For the reasons set forth below, the court denies the motion. I. BACKGROUND Air Methods provides emergent air ambulance services to patients across the United States. Rocky Mountain Holdings is a limited liability company that, according to the complaint, owns and operates Air Methods. On November 17, 2018, plaintiff Vaughn Dyer’s (“Dyer”) wife and minor child were involved in an accident with an EMS vehicle in Beaufort County, South Carolina. An Air Methods helicopter airlifted Dyer’s wife and child from the scene of the accident to a hospital in Savannah, Georgia. For the 40-mile transport, Air Methods billed Dyer $53,224.96. Dyer alleges that to collect its fee, Air Methods engages in a practice called “balance billing,” under which it collects a portion of the charged fee from patients’ insurance companies and seeks payment of the outstanding balances by hiring or threatening to hire debt collectors and filing breach-of- contract lawsuits against delinquent patients in state courts. It is unclear whether Air Methods has sought payment from Dyer through such means. According to Dyer, Air Methods charges patients, on average, around four times the fair market value of its services. On June 18, 2020, Dyer filed this declaratory judgment action on behalf of

himself and others who have similarly been billed for Air Methods’ emergency services in South Carolina. ECF No. 1, Compl. The complaint defines the proposed class as, “All persons billed by Defendants, or who paid a bill from Defendants, for air medical transport that Defendants carried out from a location in South Carolina.” Id. ¶ 38. Dyer seeks declaratory and injunctive relief on behalf of himself and the proposed class, and specifically requests that the court make the following declarations: [1.] Defendants and Plaintiff, and the Class did not enter into any contract, either express or implied-in-fact, for Plaintiff and the Class to pay the amounts charged by the Defendants for the transportation services it provided; [2.] Defendants have engaged in collection efforts against Plaintiff and the Class for amounts that the Plaintiff and the Class did not contractually agree to pay; [3.] Defendants have engaged in collection efforts against Plaintiff and the Class for amounts concerning which there was no mutual assent manifest by the Plaintiff and the Class prior to the rendering of the services charged for; [4.] The Airline Deregulation Act pre-empts the imposition of any state common law contract principles that impose terms upon Plaintiff which those parties did not express assent prior to the air medical transportation services provided to them; [5.] [T]he emergency medical circumstances of Defendants medical air transportation were such that patients transported can be presumed not entered into any contract for transportation, and in particular no agreement to pay whatever Defendants charged; [6.] [S]ince the Airline Deregulation Act pre-empts application of state law imposing or implying any agreement to pay Defendants charged amounts [sic]; [7.] Plaintiff’[s] third party payors’ determinations of the reasonable value of the Defendants’ services provided is prima facie evidence of reasonableness; and [8.] Defendants[’] collection of any sums greater than the amount determined as reasonable by objective, and typically applied formula, was unlawful, unjustly enriched Defendants, and should be disgorged.

Id. ¶ 58. As further relief, the complaint seeks a prospective order from the Court requiring Defendants to: (1) cease all balance billing and collection efforts with respect to outstanding bills for air medical transportation service until this Court makes a determination of the methodology for determining their reasonable value; and (2) account for all sums collected for air medical transportation services provided to Plaintiff.

Id. ¶ 59. On September 14, 2020, defendants filed a motion to change venue, dismiss, or stay proceedings, ECF No. 19, which the court denied on December 17, 2020, ECF No. 34. There, the court grouped Dyer’s proposed declarations into two categories: (1) declarations that Air Methods and plaintiffs did not enter into express or implied-in-fact contracts for air ambulance services, and (2) declarations that the ADA would preempt a court from imposing implied-in-law contracts or other similar quasi-contractual obligations onto plaintiffs and defendants.1 The court found that both categories present

1 The court also included a third group, comprised of the declarations Dyer lists in his complaint as “g” and “h.” With respect to those declarations, the court found: These proposed declarations ask the court to declare whether certain remedies are appropriate. At this stage, it is only appropriate for the court to “declare the rights and [ ] legal relations” of the parties. 28 U.S.C. § 2201(a). It would be inappropriate at this time for the court to consider “further necessary or proper relief” that might be available to Dyer under § 2202 of the Declaratory Judgment Act. Id. at § 2202. As such, the court construes Dyer’s final two proposed declarations as prayers for further relief and declines to consider their dismissal here. ECF No. 34 at 23 n.9. cognizable declarations for the court’s consideration and resolved to exercise its discretion to so consider them under the Declaratory Judgment Act, 28 U.S.C. § 2201. On April 1, 2021, defendants filed a motion to strike the complaint’s class allegations. ECF No. 42. On April 15, 2021, Dyer responded, ECF No. 45, and on April 22, 2021, defendants replied, ECF No. 48. The court held a hearing on the matter on

May 4, 2021. As such, the motion is now ripe for review. II. STANDARD Fed. R. Civ. P. 23(d)(1)(D) provides, “In conducting an action under this rule, the court may issue orders that . . . require that the pleadings be amended to eliminate allegations about representation of absent persons and that the action proceed accordingly[.]” Courts in this circuit have found that Rule 23(d)(1)(D) authorizes a district court to dismiss or strike class allegations “where the pleading makes clear that the purported class cannot be certified and no amount of discovery would change that determination.” Waters v. Electrolux Home Prod., Inc., 2016 WL 3926431, at *4 (N.D. W. Va. July 18, 2016).2 A motion to strike class allegations asserts that “certification is

precluded as a matter of law” and “thus requires that the [c]ourt apply the standard applicable to a motion to dismiss under Rule 12(b)(6).” Bryant v. Food Lion, Inc., 774 F.

2 Many courts find authority to strike class allegations in Fed. R. Civ. P. 12(f), which provides that “the court may strike from a pleading any insufficient defense or any redundant, immaterial, impertinent, or scandalous matter.” See, e.g., Cty. of Dorchester, S.C. v. AT & T Corp., 407 F. Supp. 3d 561, 565 (D.S.C. 2019).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
Dyer v. Air Methods Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dyer-v-air-methods-corporation-scd-2021.