Farmers Tx Cty Mtl v. 1st Choice

CourtCourt of Appeals for the Fifth Circuit
DecidedFebruary 24, 2026
Docket24-20275
StatusPublished

This text of Farmers Tx Cty Mtl v. 1st Choice (Farmers Tx Cty Mtl v. 1st Choice) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farmers Tx Cty Mtl v. 1st Choice, (5th Cir. 2026).

Opinion

Case: 24-20275 Document: 105-1 Page: 1 Date Filed: 02/24/2026

United States Court of Appeals for the Fifth Circuit United States Court of Appeals ____________ Fifth Circuit

FILED No. 24-20275 February 24, 2026 ____________ Lyle W. Cayce Clerk Farmers Texas County Mutual Insurance Company; 21st Century Centennial Insurance Company; Farmers Insurance Company, Incorporated; Fire Insurance Exchange; Texas Farmers Insurance Company; Foremost County Mutual Insurance Company; Foremost Insurance Company Grand Rapids, Michigan; Home State County Mutual Insurance Company; Truck Insurance Exchange; Mid-Century Insurance Company; Bristol West Specialty Insurance; Foremost Signature Insurance Company; Farmers Insurance Exchange,

Plaintiffs—Appellants,

versus

1st Choice Accident and Injury, L.L.C.; Phuc Vinh Charley Huynh, D.C.; Phuc Kien Andy Huynh, D.C.; Phuc Nancy Hong Huynh, D.C.; Danielle Bui Huynh; Susan Hanh Huynh; Houston Pain Relief and Wellness Clinic, L.L.C.; Smart Choice Chiropractic, L.L.C.; Medical Center Chiropractic, L.L.C.; Celebrity Spine and Joint, L.L.C.; Prohealth Medical Group Management, L.L.C.; See Chin, Medical Doctor; Matthew Dang, Medical Doctor; Chad Porter, Medical Doctor; Complete Pain Solutions, L.L.C.; Ali Mazloom, Medical Doctor; Millennium Pain and Surgical Institute, L.L.C.; Origin Spine Institute, L.L.C.; Origin MRI and Diagnostics, L.L.C.; Maxwell Adu-Lartey, Medical Doctor; Scott M. Hung, Medical Doctor; David Singleton, Medical Doctor; Reid Singleton, Medical Doctor, Case: 24-20275 Document: 105-1 Page: 2 Date Filed: 02/24/2026

Defendants—Appellees, ______________________________

Appeal from the United States District Court for the Southern District of Texas USDC No. 4:22-CV-2061 ______________________________

Before Smith and Richman, Circuit Judges. ∗ Priscilla Richman, Circuit Judge: Plaintiffs (collectively Farmers) 1 sued multiple defendants, asserting claims under the Racketeer Influenced and Corrupt Organizations Act (RICO). 2 The district court granted Defendants’ motions to dismiss and denied Farmers’s post-judgment motion for leave to amend its complaint. Farmers appeals the denial of its motion to amend. We affirm. I Farmers sued Defendants under 18 U.S.C. § 1962(c), part of RICO, alleging that a group of medical providers habitually violated a federal mail fraud statute, 18 U.S.C. § 1341. Farmers also brought a Texas state-law money-had-and-received claim, which is not at issue here. Farmers asserts that Defendants violated § 1341 by engaging in a scheme to enrich themselves by submitting “fraudulent evaluation reports and billing, including substantial templating, up-coding, overbilling, billing for services not rendered, and unwarranted diagnostic procedures.” These submissions “pertain to [individual patients] who were involved in motor vehicle

_____________________ ∗ Judge Dennis was a member of the panel that heard this case but took inactive status after the case was submitted. This matter is decided by a quorum under 28 U.S.C. § 46(d). 1 This opinion mirrors the briefing in treating “Farmers” as singular. 2 18 U.S.C. § 1962.

2 Case: 24-20275 Document: 105-1 Page: 3 Date Filed: 02/24/2026

No. 24-20275

accidents and asserted claims for damages against Farmers or individuals who were eligible for insurance benefits under Farmers insurance policies.” Farmers filed suit in June 2022. The parties then engaged in multiple conferences with the court during which alleged deficiencies in the complaint were discussed. At an October 2022 conference, Farmers represented to the court that it intended to amend its complaint. At a November 2022 conference, one of the defendant’s counsel indicated that Farmers had agreed to amend. Between October 2022 and January 2023, four defendants filed a total of three pre-motion letters previewing their arguments as to the sufficiency of the complaint. One pre-motion letter pointed out that Farmers made no allegation of an enterprise because it “never identifie[d] or describe[d] the enterprise.” Farmers amended its complaint on February 28, 2023. About two months later, Defendants filed several motions to dismiss for failure to state a claim under Federal Rule of Civil Procedure 12(b)(6) and failure to plead with particularity under Federal Rule of Civil Procedure 9(b). Three of the motions attacked the sufficiency of Farmers’s allegations regarding the RICO “enterprise” and specifically mentioned the lack of a “consensual decision-making structure.” A fourth addressed the RICO “enterprise” but did not discuss the “consensual decision-making structure.” Farmers filed a single response to the Defendants’ motions to dismiss, requesting an extension of time as to several of the earlier-filed motions, for which the response deadlines had passed, due to a “clerical error.” At the hearing on the motions to dismiss, the magistrate judge scrutinized Farmers’s allegations regarding an “association-in-fact” enterprise to support its RICO claim. Farmers considered its amended complaint “sufficient,” stating that “[w]e think that we have got an

3 Case: 24-20275 Document: 105-1 Page: 4 Date Filed: 02/24/2026

enterprise here,” and “we think we’ve adequately pled.” Farmers did not ask to file another amendment. Almost a year after Defendants filed their motions to dismiss, the magistrate judge recommended that the motions be granted, concluding that Farmers failed “to sufficiently plead an association-in-fact enterprise.” First, the magistrate judge reasoned that Farmers did not allege a “separate purpose” of the enterprise. Second, the magistrate judge concluded that Farmers did not allege a “consensual, decision-making structure.” Farmers objected to the magistrate judge’s recommendations but did not seek leave to amend further, instead maintaining that its amended complaint was sufficient. The district court granted the motions to dismiss, adopting in part and rejecting in part the magistrate judge’s recommendations. The district court concluded that showing a “separate purpose” was not required but noted that Farmers agreed at the hearing on the motion to dismiss that a “separate purpose” was a requirement and did not raise the argument that it was not required until it objected to the magistrate judge’s recommendations. The district court agreed with the magistrate judge that Farmers did not adequately allege that the “enterprise function[ed] as a consensual, decision- making structure,” and it granted Defendants’ motions to dismiss. Farmers then filed a post-judgment motion “under Federal Rules of Civil Procedure 59 and/or Rule 60.” It asked for leave to amend and attached a Proposed Second Amended Complaint, but it requested twenty days to file the proposed amendment. Acknowledging Farmers’s argument that the proposed amendment “cure[d] the deficiencies that made the complaint susceptible to a motion to dismiss in the first instance,” the court concluded that Farmers “fail[ed] to demonstrate why the proposed amended allegations could not have been raised prior to the entry of judgment.” The district court

4 Case: 24-20275 Document: 105-1 Page: 5 Date Filed: 02/24/2026

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Farmers Tx Cty Mtl v. 1st Choice, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farmers-tx-cty-mtl-v-1st-choice-ca5-2026.