Gainwell Technologies LLC v. Stephen Russo, in his official capacity as Acting Secretary for the Louisiana Department of Health and the Louisiana Department of Health

• Court: Louisiana Court of Appeal
• Decided: January 31, 2025
• Docket: 2024CA0002
• Status: Unknown

Opinion

STATE OF LOUISIANA

FIRST CIRCUIT

2024 CA 0002 2023 CW 1207 2023 CW 1220

GAINWELL TECHNOLOGIES, LLC

VERSUS

STEPHEN RUSSO, IN HIS OFFICIAL CAPACITY AS ACTING SECRETARY FOR THE LOUISIANA DEPARTMENT OF HEALTH AND THE LOUISIANA DEPARTMENT OF HEALTH; STATE OF LOUISIANA; STATE OF LOUISIANA, DIVISION OF ADMINISTRATION; JAY DARDENNE IN HIS OFFICIAL CAPACITY AS COMMISSIONER OF ADMINISTRATION, DIVISION OF ADMINISTRATION FOR THE STATE OF LOUISIANA; STATE OF LOUISIANA, OFFICE OF STATE PROCUREMENT; TOM KETTERER IN HIS OFFICIAL CAPACITY AS DIRECTOR, OFFICE OF STATE PROCUREMENT

Judgment Rendered: JAN 31 2025

Appealed from the 19th Judicial District Court In and for the Parish of East Baton Rouge State of Louisiana Docket No. 736455

The Honorable Ronald R. Johnson, Judge Presiding

Leigh Ann Schell Counsel for Plaintiff/Appellee, Kellen J. Mathews Gainwell Technologies LLC Taylor M. LeDuff Christopher D. Joseph Baton Rouge, Louisiana

David J. Ginsberg Los Angeles, California

Bridget B. Denicola Counsel for Defendants/ Appellants, Victor J. Brubaker Division of Administration, and Jay Baton Rouge, Louisiana Dardenne, Commissioner of Administration V. Thomas Clark Counsel for Intervenor/Appellant, Carroll Devillier Conduent State Healthcare, LLC Danielle L. Borel

Mary Katherine Loos Sarah A. Perkins Baton Rouge, Louisiana

Carlos A. Romanach Counsel for Defendants/ Appellants, Baton Rouge, Louisiana Office of State Procurement, and Tom Ketterer, Director of the Office of State Procurement

Douglas L. Cade Counsel for Defendants/ Appellants, Jeremy S. Woolard Louisiana Department of Health Charles E. Daspit and Secretary Stephen Russo Baton Rouge, Louisiana

BEFORE: THERIOT, PENZATO, AND MILLER, JJ.

2 MILLER, J.

Defendants/ Appellants, Louisiana Department of Health (" LDH"); Stephen

Russo, in his official capacity as Secretary of the Louisiana Department of Health

Secretary Russo"); State of Louisiana, Division of Administration (" DOA"); Jay

Dardenne, in his official capacity as Commissioner of Administration

Commissioner Dardenne"); State of Louisiana, Office of State Procurement

OW'); and Tom Ketterer, in his official capacity as Director of the Office of

State Procurement (" Director Ketterer"); and Intervenor/Appellant, Conduent State

Healthcare, LLC (" Conduent"), appeal a judgment of the trial court granting

Gainwell Technologies LLC' s (" Gainwell") application for the issuance of a

preliminary injunction against DOA and LDH. Additionally, DOA, Commissioner

Dardenne, OSP, and Director Ketterer and LDH and Secretary Russo filed writ

applications seeking review of the trial court' s October 26, 2023 judgment. For the

reasons that follow, we dismiss the appeals and writ applications.

FACTS AND PROCEDURAL HISTORY

Gainwell is Louisiana' s Medicaid claims processing services vendor. On

April 21, 2023, Gainwell filed a pre -award Protest with OSP, challenging the

State' s compliance with the applicable procurement law. Thereafter, on May 17,

2023, Director Ketterer issued. a response, denying Gainwell' s request for relief.

Gainwell then appealed Director Ketterer' s response with the DOA. Commissioner

Dardenne issued a decision on August 10, 2023, wherein he concurred with

Director Ketterer' s decision dismissing, as untimely, Gainwell' s pre -award protest

regarding LDH' s intent to use cooperative purchasing for the procurement of

Medicaid Claim Processing Services.

On August 23, 2023, Gainwell filed a " Petition for Judicial Review and

Injunctive and Declaratory Relief." Gainwell sought judicial review of the August

10, 2023 appeal decision rendered by Commissioner Dardenne and the May 17,

3 2023 protest decision; a declaratory judgment; a temporary restraining order

TRO"); a preliminary prohibitory injunction; and a permanent prohibitory

injunction. The named defendants were LDH, Secretary Russo, DOA,

Commissioner Dardenne, OSP, and Director Ketterer. On September 5, 2023,

Conduent sought to intervene, contending it had a protected pecuniary interest in

the outcome of the litigation, and the trial court permitted Conduent to intervene

and join the defendants.

On October 27, 2023, the trial court held a hearing on Gainwell' s petition for

preliminary injunction. The trial court granted the preliminary injunction in favor

of Gainwell and against DOA and LDH and enjoined them from discussing and/or

negotiating the terms of, executing, or allowing any services to be performed

pursuant to any Participating Addendum or contract for Medicaid claims

processing — fiscal intermediary services — resulting from the defendants'

procurement activities commencing in or around Fall 2021 through the present,

with any vendor, including but not limited to Conduent, until the above -captioned

proceedings concluded. The trial court signed its judgment on November 2, 2023,

and ordered the preliminary injunction to be issued upon the posting of security in

the amount of $100, 000. 00 pursuant to La. C. C. P. art. 3610.

LDH, Secretary Russo, DOA, Commissioner Dardenne, OSP, Director

Ketterer, and Conduent appealed. On June 5, 2024, LDH and Secretary Russo filed

a motion to dismiss both their writ application ( 2023 CW 1220) and their appeal.

Thereafter, on December 11, 2024, the district court signed a judgment of

dismissal, which dissolved the November 2, 2023 preliminary injunction entered in

favor of Gainwell and dismissed all claims in the underlying suit with prejudice. Then, on December 18, 2024, DOA, Commissioner Dardenne, OSP, and Director

Ketterer also filed a motion to dismiss both their writ application ( 2023 CW 1207)

0 and their appeal. Further, Conduent indicated to this court through correspondence

that it did not oppose the dismissal of their appeal.

DISCUSSION

In the interest of judicial economy, an appellate court may consider the

possibility of mootness on its own motion and dismiss the appeal if the matter has

become moot. Russell v. Cantrelle, 2019- 0284 ( La. App. 1St Cir. 2/ 21/ 20), 2020

WL 859515, * 3, n. 8 ( unpublished). An issue is moot when a rendered judgment or

decree can serve no useful purpose and give no practical relief or effect. If the case

is moot, there is no subject matter on which the judgment of the court can operate;

that is, jurisdiction, once established, may abate if the case becomes moot. The

controversy must normally exist at every stage of the proceeding, including the

appellate stage. Stevens v. St. Tammany Parish Government, 2016- 0197 ( La. App.

1st Cir. 1/ 18/ 17), 212 So. 3d 562, 566- 567.

Accordingly, we grant the motions to dismiss the appeal and writ

applications filed by LDH, Secretary Russo, DOA, Commissioner Dardenne, OSP,

and Director Ketterer. Further, we dismiss Conduent' s appeal as moot due to the

December 11, 2024 judgment of dismissal signed by the district court.

CONCLUSION

For the above and foregoing reasons, the motion to dismiss filed by the Louisiana Department of Health and Stephen Russo, in his official capacity as

Secretary of the Louisiana Department of Health on June 5, 2024 is granted, and

their appeal of the November 2, 2023 judgment and writ application are dismissed.

The motion to dismiss filed by the State of Louisiana, Division of Administration;

Jay Dardenne, in his official capacity as Commissioner of Administration; State of

Louisiana, Office of State Procurement; and Tom Ketterer, in his official capacity as Director of the Office of State Procurement is granted, and their appeal of the

November 2, 2023 judgment and writ application are dismissed. Further, Conduent

Wi State Healthcare, LLC' s appeal of the November 2, 2023 judgment is dismissed as

moot. All costs of this appeal are assessed as follows: ( 1) $ 1, 012. 25 to Gainwell

Technologies, LLC; ( 2) $ 1, 012. 25 to Louisiana Department of Health and Stephen

Russo, in his official capacity as Secretary of the Louisiana Department of Health;

3) $ 1, 012.25 to State of Louisiana, Division of Administration, Jay Dardenne, in

his official capacity as Commissioner of Administration, State of Louisiana, Office

of State Procurement, and Tom Ketterer, in his official capacity as Director of the

Office of State Procurement; and ( 4) $ 1, 012.25 to Conduent State Healthcare,

LLC.

APPEAL DISMISSED; WRITS DISMISSED.

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