In Re Sanofi-Aventis U.S. LLC v. the State of Texas

Court of Appeals of Texas·Decided March 27, 2025·No. 15-24-00104-CV·Published

Opinion

Petition for Writ of Mandamus Conditionally Granted and Opinion filed March 27, 2025.

In The

Fifteenth Court of Appeals

NO. 15-24-00104-CV

IN RE SANOFI-AVENTIS U.S. LLC

ORIGINAL PROCEEDING Harrison County, Texas

OPINION

Relator Sanofi-Aventis U.S. LLC (Sanofi) has filed a petition for writ of mandamus, complaining that the trial court abused its discretion by refusing to transfer the underlying suit from Harrison County to Travis County. See Tex. Gov’t Code § 22.221; see also Tex. R. App. P. 52. Real party in interest APBQR, LLC (APBQR) sued Sanofi on behalf of the State of Texas under the Texas Health Care Program Fraud Prevention Act (THFPA). See Tex. Human Res. Code §§ 36.001-.132. In its petition, APBQR alleges that certain activities by Sanofi

1 violate the THFPA and names the State of Texas as an interested party. Specifically, APBQR alleges that Sanofi unlawfully offered remuneration, in the form of free services to Medicaid patients for the purpose of inducing providers to prescribe Sanofi products. Sanofi answered by denying that any of the allegedly unlawful acts occurred in Harrison County and then moved to transfer the case to Travis County under the THFPA’s default-venue provision. See id. § 36.052(d). After a hearing, the trial court denied Sanofi’s motion to transfer venue. Because we conclude that we have jurisdiction over this original proceeding and that the trial court abused its discretion in denying Sanofi’s motion, we conditionally grant mandamus relief.

STANDARD OF REVIEW Mandamus relief is available to enforce mandatory venue provisions in civil cases. In re Lopez, 372 S.W.3d 174, 176 (Tex. 2012) (orig. proceeding); see Tex. Civ. Prac. & Rem. Code § 15.0642 (“A party may apply for a writ of mandamus with an appellate court to enforce the mandatory venue provisions of this chapter.”). Ordinarily, a party seeking mandamus relief must establish that (1) the trial court abused its discretion and (2) there is no adequate remedy by appeal. In re Prudential Ins. Co. of Am., 148 S.W.3d 124, 135–36 (Tex. 2004) (orig. proceeding). A party seeking to enforce a mandatory venue provision by mandamus, however, is not required to prove it lacks an adequate appellate remedy. In re Lopez, 372 S.W.3d at 176–77. Thus, whether a party is entitled to mandamus relief from a trial court’s ruling on mandatory venue turns solely on whether the ruling constitutes an abuse of discretion. In re Applied Chem. Magnesias Corp., 206 S.W.3d 114, 117 (Tex. 2006) (orig. proceeding). A trial court abuses its discretion when “it reaches a decision so arbitrary and 2 unreasonable as to amount to a clear and prejudicial error of law.” Walker v. Packer, 827 S.W.2d 833, 839 (Tex. 1992). This case also concerns statutory construction issues, which are legal questions reviewed de novo. In re Panchakarla, 602 S.W.3d 536, 540 (Tex. 2020) (orig. proceeding). When a statute’s language is unambiguous, “we adopt the interpretation supported by its plain language unless such an interpretation would lead to absurd results.” TGS-NOPEC Geophysical Co. v. Combs, 340 S.W.3d 432, 439 (Tex. 2011). “We presume the Legislature included each word in the statute for a purpose and that words not included were purposefully omitted.” Lippincott v. Whisenhunt, 462 S.W.3d 507, 509 (Tex. 2015). Statutes and related provisions shall be construed as a whole, not in isolation. Helena Chem. Co. v. Wilkins, 47 S.W.3d 486, 493 (Tex. 2001).

DISCUSSION

The THFPA targets fraud in Texas’s health care system.1 Tex. Hum. Res. Code § 36.001(1), (4-a)–(4-c). The Texas health care system’s “size and complexity, the limited time and financial resources of governmental regulators, and the increasing sophistication of [health care program] scams make chicanery difficult to uncover.” In re Xerox Corp., 555 S.W.3d 518, 525 (2018). To combat this problem, the THFPA grants the Attorney General broad investigative and enforcement powers. Id.; Tex. Hum. Res. Code §§ 36.051–.055. The statute also encourages private persons—via qui tam provisions—to file lawsuits against individuals or entities that defraud the State by providing substantial monetary

1 Previously known as the “Texas Medicaid Fraud and Prevention Act,” the statute was amended in 2023 to include a broader range of state-run health care programs, such as care for children, the elderly, and individuals with disabilities, not just Medicaid. Act of April 3, 2023, 88th Leg., R.S., ch. 273, §§ 1–15, 2023 Tex. Gen. Laws 584–588. 3 incentives.2 Tex. Hum. Res. Code §§ 36.101, .110; In re Xerox, 555 S.W.3d at 525 (“The statute . . . deputizes private citizens to pursue a [THFPA] action on the government’s behalf.”). As a gatekeeper to the litigation, the State has the option to intervene at multiple points during the qui tam suit. Tex. Hum. Res. Code §§ 36.102(c)–(e), .104(a)–(b), .107(a)–(e), .108(a), .109(a)–(b). APBQR filed this suit under these qui tam provisions, and to this point in the litigation, the State has declined to intervene. APBQR argues that this Court lacks jurisdiction over this original proceeding because APBQR’s suit filed on behalf of the State is not a civil matter brought by or against the State, such that it is within this Court’s exclusive jurisdiction. See Tex. Gov’t Code § 22.220(d). Because it is a threshold matter, we will first address APBQR’s contention that this Court lacks jurisdiction over this proceeding.

A. Jurisdiction

This Court’s jurisdiction over original proceedings is outlined in Section 22.221(c-1) of the Texas Government Code: “The original jurisdiction of the Court of Appeals for the Fifteenth Court of Appeals District to issue writs is limited to writs arising out of matters over which the court has exclusive intermediate appellate jurisdiction under Section 22.220(d).” Tex. Gov’t Code § 22.221(c-1). In relevant part, Section 22.220(d) of the Texas Government Code provides that this Court has exclusive jurisdiction over “matters brought by or against the state.” Id. § 22.220(d). APBQR contends that because it, as a private entity, filed the

2 Black’s Law Dictionary defines “qui tam action” as “[a]n action brought under a statute that allows a private person to sue for a penalty, part of which the government or some specified public institution will receive.” Qui Tam Action, Black’s Law Dictionary (12th ed. 2024). 4 underlying qui tam suit on behalf of the State of Texas and because the State did not intervene in the suit, we lack jurisdiction over this original proceeding. We disagree. Under the THFPA’s qui tam provisions,“[a] person may bring a civil action for a violation of Section 36.002 [an unlawful act] for the person and for the state.” Tex. Hum. Res. Code § 36.101(a).

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