Forgione v. HCA Inc.

954 F. Supp. 2d 1349, 2013 WL 3784160, 2013 U.S. Dist. LEXIS 102765
CourtDistrict Court, N.D. Florida
DecidedJune 27, 2013
DocketCase No. 3:13cv337/CJK
StatusPublished
Cited by1 cases

This text of 954 F. Supp. 2d 1349 (Forgione v. HCA Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Forgione v. HCA Inc., 954 F. Supp. 2d 1349, 2013 WL 3784160, 2013 U.S. Dist. LEXIS 102765 (N.D. Fla. 2013).

Opinion

ORDER

CHARLES J. KAHN, JR., United States Magistrate Judge.

This matter arises from a state court action in which plaintiffs allege that defendants’ negligence caused the death of plaintiffs’ decedent. Before the court for decision is the United States’ motion to quash subpoenas. (Doc. 6). The United States seeks to quash subpoenas issued by plaintiffs and served upon Peter Federovich, Nancy Wills, and Marcia Steele, seeking testimony and documents. The United States removed this action — contesting the enforcement of the subpoenas only — to federal court under 28 U.S.C. § 1442(a)(1). The parties have consented to Magistrate Judge jurisdiction. (Doc. 8). The court heard oral arguments on the matter on June 13, 2013. The United States argues that the three subpoenaed individuals, all employees of Florida’s Agency for Health Care Administration (“AHCA”) during the events at issue, acted “under the direction” of officials at the Center for Medicare & Medicaid Services (“CMS”) — a federal agency within the Department of Health and Human Services (“HHS”) — in completing a survey assessing Fort Walton Beach Medical Center’s compliance with certain Medicare and Medicaid health care provider requirements. (Doc. 6, p. 2). Because the three state employees were acting “under the direction” of HHS and CMS, the United States claims they are subject to HHS’s regulations governing the circumstances under which someone employed by HHS cannot be compelled to give testimony or produce documents without the agency’s permission. In response, plaintiffs argue Congress never granted HHS the statutory authority to promulgate a regulation permitting “it to direct current or former [AHCA] employees to disobey a subpoena from a Florida court.” (Doc. 15, p. 5). The issue, then, turns on the validity of the regulation referenced by plaintiffs, 45 C.F.R. § 2.2(3), which defines HHS employees as “[e]mployees of a contractor, subcontractor, or state agency performing survey, certification, or enforcement functions under” the Social Security Act. The definition of employee is significant to plaintiffs, because another HHS regulation prohibits any HHS “employee” from “providing] testimony or produc[ing] documents in any proceedings to which [1351]*1351this part applies concerning information acquired in the course of performing official duties or because of the person’s official relationship with the Department unless authorized by the Agency head....” 45 C.F.R § 2.3.

BACKGROUND AND PROCEDURAL HISTORY

The underlying state action stems from a July 2008 incident in which a mentally ill person, admitted involuntarily under the Baker Act1 to Fort Walton Beach Medical Center (“the hospital”) for observation, escaped from the facility and ultimately killed a law enforcement officer attempting to recapture him. Following the incident, AHCA, a Florida executive agency charged with primary responsibility for investigating complaints against hospitals, see Fla. Stat. § 395.1046 (2011), investigated the hospital for compliance with Florida law. Germane to the present matter, AHCA also assessed whether the hospital was in compliance with certain federal laws, specifically those regulations relating to Medicare and Medicaid. As far as the record indicates, AHCA officials completed two distinct sets of surveys detailing the hospital’s violations, one for HHS and CMS (doc. 17, pp. 2-22), and one for AHCA (docs. 16, 16-1, 16-2); both surveys, however, appear to have relied, in large part, on common facts derived from interviews with hospital staff and patients. Additionally, AHCA sent out two different sets of letters to the hospital, one addressing violations of Florida law (docs. 17, pp. 23-24, 17-1, pp. 1-4), and one addressing federal violations (doc. 17, p. 1). The AHCA letter discussing federal violations indicated CMS would be contacting the hospital shortly thereafter. CMS subsequently sent a letter to the hospital outlining the assessed violations of federal law and threatening to withhold Medicare payments if the hospital did not submit an acceptable plan of correction. (Doc. 17-1, pp. 5-7). The hospital, in turn, issued two different letters, one to CMS addressing the federal violations (doc. 17-1, pp. 11-12), and one to a state official discussing state violations (doc. 17-1, pp. 13-14).

The plaintiffs in the underlying state tort action, in seeking to depose the AHCA employees involved with the surveys, received permission from AHCA to depose such individuals pending approval by CMS. (Doc. 6-1, p. 8). Plaintiffs’ counsel then requested from CMS Consortium Administrator Doctor James Farris, under HHS Regulation Title 45, Code of Federal Regulations, § 2.1(a)(b)(e), permission to depose the three AHCA employees concerning their factual findings from their investigation of the hospital. Dr. Farris, in response, cited the HHS’s Touhy2 regulations and denied plaintiffs’ request to depose the three individuals. In subsequent correspondence with defense counsel, plaintiffs offered to stipulate that the depositions would be limited to those areas relating to the state investigation only. (Doc. 17-1, p. 34). Plaintiffs, with the matter still unresolved, served upon the three employees second amended subpoenas seeking deposition testimony and requiring each individual to bring their notes and records from the surveys of the hospital. On May 24, 2012, the United States removed the issue to this court.

DISCUSSION

The court must first address the nature of the proceeding currently before [1352]*1352it. Traditionally, a state-court litigant will request the documents, or testimony, from the appropriate federal agency under that agency’s established guidelines and regulations. If the agency refuses to allow an employee to testify or release the requested documents, the “sole remedy for the state-court litigant is to file a collateral action in federal court under the [Administrative Procedure Act].” Houston Bus. Journal, Inc. v. Office of Comptroller of Currency, U.S. Dept. of Treasury, 86 F.3d 1208, 1212 (D.C.Cir.1996). The Administrative Procedure Act (“APA”) entitles “[a] person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of the relevant statute,” to judicial review. 5 U.S.C. § 702. Under the APA, the court can vacate an agency action if it is “arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” 5 U.S.C. § 706(2)(A); Fund for Animals, Inc. v. Rice, 85 F.3d 585, 541 (11th Cir.1996).

Here, however, plaintiffs did not file an APA action with the court; instead, the government, facing the issuance of subpoenas and pending depositions, removed the discovery issue under section 1442(a)(1). When a case is removed from state court under section 1442, the district court’s jurisdiction is derivative of the state court. See, e.g., Arizona v. Manypenny, 451 U.S. 232

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954 F. Supp. 2d 1349, 2013 WL 3784160, 2013 U.S. Dist. LEXIS 102765, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forgione-v-hca-inc-flnd-2013.