Gunderson v. F.A. Richard & Associates

44 So. 3d 779, 9 La.App. 3 Cir. 01498, 2010 La. App. LEXIS 1199, 2010 WL 2594287
Louisiana Court of Appeal·Decided August 25, 2010·No. 09-1498·Published·Cited by 26 cases

Opinions

PAINTER, Judge.

| defendant, First Health Group Corporation (First Health), appeals the trial court’s grant of Plaintiff Class’ motion for summary judgment and the denial of its own motion for summary judgment.

[782]*782FACTS AND PROCEDURAL HISTORY

Plaintiffs, Drs. Clark A. Gunderson and Frank A. Lopez, Beutler-England Chiropractic Clinic (Beutler)and Southwest Louisiana Hospital Association d/b/a/ Lake Charles Memorial Hospital (LCMH) (Plaintiffs), brought this action for statutory damages against Defendants, F.A. Richard & Associates, Inc.; First Health Group Corporation (First Health); Focus Healthcare Management, Inc.; Cambridge Integrated Services Group, Inc.; National Loss Control Management, Inc.; and AIG Claim Services, Inc. (Defendants). In their petition, Plaintiffs stated that Defendants entered into contracts with them pursuant to the Preferred Provider Organization Act (hereinafter “PPOA”), La.R.S. 40:2201, et seq., which allowed Defendants’ clients/payors to pay a discounted rate for health care services. They alleged that Defendants routinely reimbursed them in workers’ compensation cases at the lower PPOA contracted rates, rather than at the higher mandated workers’ compensation rates. In doing so, the healthcare providers claim that Defendants violated the provisions of La.R.S. 40:2203.1 by failing to provide them with prior notice of their intent to reimburse at the PPO rates, either by providing the injured worker with a PPO card or by providing thirty days’ written notice of their intent to utilize an existing PPO agreement. La.R.S. 40:2203.1(B). Plaintiffs sought and received class certification.

^Several Defendants entered into settlement agreements with Plaintiffs. In November 2008, Plaintiffs filed a motion for partial summary judgment as to their claims against First Health seeking payment of the minimum amount of damages mandated by La.R.S. 40:2203.1(G) for each violation indicated by First Health’s records. In January 2009, First Health also filed a motion for summary judgment asserting that the choice of law clause included in the First Health provider agreements required application of California or Illinois law rather than the Louisiana Preferred Provider Statute, La.R.S. 40:2201, et seq.

Following proceedings outlined in Gunderson v. F.A. Richard & Assoc. Inc., 10-61 (La.App. 3 Cir.6/2/10), 40 So.3d 418, the trial court heard arguments on the motions. After the hearing, the trial court granted Plaintiffs’ motion for partial summary judgment, awarded statutory damages, and denied First Health’s motion. The court designated the judgment as final and immediately appealable pursuant to La.Code Civ.P. art. 1915(B). First Health appeals.

DISCUSSION

Failure to Comply with Uniform Rules-Courts of Appeal 2-12.1

We first note that First Health has, with regard to several of its assignments of error, failed to provide references to the record volume and page number of the evidence to which it refers. First Health often refers in only the most general way to “evidence” it presented to the trial court without referring to the document or documents by name or pinpointing in which of the over seventy volumes of records and exhibits the document or documents can be found. Uniform Rules-Courts of Appeal 2-12.4 states that:

The argument on a specification or assignment of error in a brief shall include a suitable reference by volume and page to the place in the ^record which contains the basis for the alleged error. The court may disregard the argument on that error in the event suitable reference to the record is not made.

[783]*783While it would be appropriate to disregard the arguments made in this respect, we will address them out of an abundance of caution. We note, however, that First Health’s failure to provide record citations suggests that many of these assignments were interposed only for purposes of delay and confusion.

Trial Court’s Jurisdiction to Hear the Motions for Summary Judgment

First Health asserts that its appeal of the trial court’s denial of its motion to decertify the Plaintiff Class divested the trial court of jurisdiction to hear the motions for summary judgment. However, on review of the record, we cannot find any evidence that the appeal was perfected before the motions were heard.

Louisiana Code of Civil Procedure Article 2088(A) provides in pertinent part that:

The jurisdiction of the trial court over all matters in the case reviewable under the appeal is divested, and that of the appellate court attaches, on the granting of the order of appeal and the timely filing of the appeal bond, in the case of a suspensive appeal or on the granting of the order of appeal, in the case of a devolutive appeal.

While it appears from the transcript of the hearings that a motion for appeal was tendered to the trial court prior to the hearing on the motions for summary judgment, there is nothing of record to indicate that it was filed into the trial court record or signed before the hearings. We further note that First Health proceeded with the hearing on the motions for summary judgment without objection and without calling any lack of jurisdiction to the attention of the trial court. Therefore, we cannot conclude that the trial court heard the motions for summary judgment after it was divested of jurisdiction by filing and/or signing of the motion for appeal.

\ ¿Choice of Law

First Health argues that the trial court erred in denying its motion for summary judgment because most of First Health’s provider agreements require application of California or Illinois law.

Louisiana Civil Code Article 3540 provides that: “All other issues of conventional obligations are governed by the law expressly chosen or clearly relied upon by the parties, except to the extent that law contravenes the public policy of the state whose law would otherwise be applicable under Article 3537.”

La.R.S. 40:2203.1 provides in pertinent part that its notice provisions “shall apply to all preferred provider organization agreements that are applicable to medical services rendered in this state and to group purchasers as defined in this Part.” The mandatory provisions of this statute evidence a strong public policy in favor of notice to health care providers that a PPO discount may be taken. First Health itself raises, in its appeal brief, the legislature’s interest in preventing doctors from becoming victims of “silent” PPOs. While the law of another state may be applied to the contract in general, it may not be used to circumvent the notice requirement.

Existence of Class Representatives

First Health asserts that the trial court erred in proceeding with the summary judgment where the U.S. District Court for the Western District of Louisiana had issued injunctions prohibiting the class representatives from pursuing their own claims against First Health. This issue has been disposed of in the companion case hereto, Gunderson v. F.A. Richard & Assoc., Inc., 10-61 (La.App. 3 Cir.6/2/10), 40 So.3d 418, wherein this court found that the injunctions did not present an impediment -to the representatives acting on behalf of the class.

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Gunderson v. F.A. Richard & Associates, 44 So. 3d 779, 9 La.App. 3 Cir. 01498, 2010 La. App. LEXIS 1199, 2010 WL 2594287 (La. Ct. App. 2010).

44 So. 3d 779 (Gunderson v. F.A. Richard & Associates) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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