Griffin v. Focus Brands, Inc.

157 F. Supp. 3d 1266, 2015 WL 9920818, 2015 U.S. Dist. LEXIS 175526
CourtDistrict Court, N.D. Georgia
DecidedMay 12, 2015
DocketCIVIL ACTION NO. 1:15-CV-00170-AT
StatusPublished
Cited by3 cases

This text of 157 F. Supp. 3d 1266 (Griffin v. Focus Brands, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Griffin v. Focus Brands, Inc., 157 F. Supp. 3d 1266, 2015 WL 9920818, 2015 U.S. Dist. LEXIS 175526 (N.D. Ga. 2015).

Opinion

AMENDED1 ORDER

Amy Totenberg, United States District Judge

This matter is before the Court on Defendant FOCUS Brands, Inc.’s (“FB”) Motion to Dismiss [Doc. 6]. For the following reasons, the Motion is GRANTED.

[1267]*1267I. BACKGROUND FACTS

At this stage, the facts alleged in the Complaint are accepted as true. Plaintiff Griffin operates a solo dermatology practice called Intown Dermatology. (ComplJ 3.) As a condition of service, Plaintiff requires her patients to assign their health insurance benefits to her. (Id.)

In March of 2013, Plaintiff performed two surgical procedures on patient SD, whose insurance coverage is at issue in this litigation. SD is a beneficiary of an FB-sponsored group health benefit plan (the “Plan”) governed by the Employee Retirement Income Security Act (“ERISA”), 29 U.S.C. eh. 18. (Id. ¶2, 14). Plaintiff was not paid what she believes she is owed for services rendered to SD.

Plaintiffs Complaint contains four counts against FB, all of which are styled as ERISA violations. Count One alleges failui’e to pay the correct amount of benefits. Count Two alleges a breach of fiduciary duty by continuing to delegate claims administration duties to FB’s claims administrator, Blue Cross Blue Shield Healthcare Plan of Georgia (“BCBSHP Georgia”), even when FB knew or should have known that BCBSHP Georgia was performing inadequately. Count Three alleges failure to provide plan documents upon request, and Count Four claims FB breached its “contractual obligations to the Plaintiff as recognized by ERISA.”

II. LEGAL STANDARD

This Court may dismiss a pleading for “failure to state a claim upon which relief can be granted.” Fed. R. Civ. P. 12(b)(6). A pleading fails to state a claim if it does not contain allegations that support recovery under any recognizable legal theory. 5 Charles Alan Wright & Arthur R. Miller, Federal Practice & Procedure § 1216 (3d ed.2002); see also Ashcroft v. Iqbal, 666 U.S. 662, 677-78, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). In considering a Rule 12(b)(6) motion, the Court construes the pleading in the non-movant’s favor and accepts the allegations of facts therein as true. See Duke v. Cleland, 5 F.3d 1399, 1402 (11th Cir.1993). Plaintiff need not provide “detailed factual allegations” to survive dismissal, but the “obligation to provide the ‘grounds’ of his ‘entitle[ment] to relief requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 655, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). In essence, the pleading “must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Iqbal, 556 U.S. at 678, 129 S.Ct. 1937 (quoting Twombly, 550 U.S. at 570, 127 S.Ct. 1955).

III.DISCUSSION

Defendant FB moves to dismiss all ERISA-based violations under Rule 12(b)(6). FB argues that Plaintiff lacks standing to bring any ERISA-based claim against it because the Plan at issue contains an unambiguous anti-assignment clause. Plaintiff responds that the assignment that grants her standing to bring her ERISA claims should be permitted because Georgia insurance law allows for such assignments.

[1268]*1268A. Coünt 1: Unpaid Benefits Under 29 U.S.C. § 1132(a)(1)(B)-

The Eleventh Circuit has long since resolved any question about the effectiveness of an anti-assignment clause as it pertains to an ERISA claim for unpaid benefits. Physicians Multispecialty Grp. v. Health Care Plan of Horton Homes, Inc., 371 F.3d 1291, 1294-1296 (11th Cir.2004). In Physicians Multispecialty Group, a healthcare provider obtained an assignment of benefits from the estate of a deceased participant in an ERISA-governed plan. Id. at 1293. When the plan did not pay as much as the provider believed it was owed for services rendered to the deceased, the provider sued for unpaid benefits under 29 U.S.C. § 1132(a)(1)(B)— the same provision under which Plaintiff Griffin brings Count 1 of her Complaint. The assignment issue was not fully briefed or decided by the district court, and summary judgment was granted in favor of the provider. Id.

The Court of Appeals reversed. After the issue was fully briefed, the Eleventh Circuit held that an ERISA-governed healthcare plan may prohibit the assignment of benefits to a third-party, including to a healthcare provider. Specifically, the court stated:

Under ERISA § 502(a)(1)(B), 29 U.S.C. § 1132(a)(1)(B), two categories of persons exist who can sue for benefits under an ERISA-governed plan: plan beneficiaries and plan participants. Healthcare providers ... are generally not “participants” or “beneficiaries” un~ der ERISA and thus lack independent standing to sue under ERISA. Healthcare providers may acquire derivative standing, however, by obtaining a written assignment from a “beneficiary” or “participant” of his right to payment of benefits under an ERISA-governed plan.
[But because] ERISA-govemed plans are contracts, the parties are free to bargain for certain provisions in the plan — like assignability. Thus, an unambiguous anti-assignment provision in an ERISA-governed welfare benefit plan is valid and enforceable.

Id. at 1294-1296 (citations omitted).

The anti-assignment clause considered in Physicians Multispecidlty Group was found to be unambiguous. It read:

Except as applicable law- may otherwise require, no amount payable at any time hereunder shall be subject in any manner to alienation by ... assignment ... of any kind[ ]. Any attempt to ... assign ... any such amount, whether presently or hereafter , payable, shall be void_

Id. at 1295. As the clause was unambiguous, it precluded the healthcare provider’s “maintenance of an ERISA action.” Id. at 1296. See also Ward v. Ret. Bd. of Bert Bell/Pete Rozelle NFL Player Ret. Plan, 643 F.3d 1331, 1333-34 (11th Cir.2011) (holding same and citing Physicians Multispecialty Group).

The anti-assignment clause at issue here2 is similarly unambiguous. It reads, in pertinent part:

[1269]*1269Benefits available under this [Plan] are not assignable by any Member without obtaining written permission from us.

(Doc. 6-1 at 31.) The provision’s terms are clear, and no permission to assign was granted.3 Under

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Related

Griffin v. Sevatec, Inc.
209 F. Supp. 3d 1313 (N.D. Georgia, 2016)
Griffin v. Humana Employers Health Plan of Georgia, Inc.
167 F. Supp. 3d 1337 (N.D. Georgia, 2016)

Cite This Page — Counsel Stack

Bluebook (online)
157 F. Supp. 3d 1266, 2015 WL 9920818, 2015 U.S. Dist. LEXIS 175526, Counsel Stack Legal Research, https://law.counselstack.com/opinion/griffin-v-focus-brands-inc-gand-2015.