In re the Receivership of Harvard Pilgrim Health Care, Inc.

746 N.E.2d 513, 434 Mass. 51, 2001 Mass. LEXIS 203
CourtMassachusetts Supreme Judicial Court
DecidedApril 26, 2001
StatusPublished
Cited by10 cases

This text of 746 N.E.2d 513 (In re the Receivership of Harvard Pilgrim Health Care, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re the Receivership of Harvard Pilgrim Health Care, Inc., 746 N.E.2d 513, 434 Mass. 51, 2001 Mass. LEXIS 203 (Mass. 2001).

Opinion

Greaney, J.

This appeal arises out of the receivership of Harvard Pilgrim Health Care, Inc., Pilgrim Health Care, Inc., and Harvard Pilgrim Health Care of New England, Inc. (collectively, HPHC), which conduct business as health maintenance [52]*52organizations (HMO or HMOs).2 Health Care for All (Health Care), a nonprofit, consumer advocacy organization, which was permitted, essentially as an amicus curiae, to participate in the receivership proceedings, filed notices of appeal from orders entered by the single justice of this court who presided over the receivership proceedings. The challenged orders approved the amended plan of rehabilitation of HPHC which was presented by the Commissioner of Insurance (commissioner) and the Attorney General; entered permanent injunctions against certain claims being brought against HPHC and others; and dismissed the receivership proceeding, thereby releasing HPHC from receivership. Health Care argues that the single justice did not adhere to applicable legal standards governing his role in overseeing a receivership of this type because he failed to require the commissioner to produce for examination business and financial documents of HPHC that the commissioner had relied on in submitting the proposed plan for HPHC’s rehabilitation. Health Care asks that the case be remanded to the single justice for additional proceedings at which the undisclosed information is to be produced and examined. We conclude that Health Care’s appeal should be dismissed. We shall, however, take this opportunity to discuss how a dispute, like this one should be handled in the future by a single justice dealing with a HMO receivership.

The background of the case is as follows. On January 4, 2000, the commissioner, through the Attorney General, filed [53]*53receivership proceedings pursuant to G. L. c. 176G, § 20,3 and G. L. c. 175, § 180B,4 in the Supreme Judicial Court for Suffolk County, seeking HPHC’s rehabilitation.5 HPHC assented to these proceedings, and that same day, a single justice entered a temporary injunction and order appointing the commissioner as temporary receiver.6 Subsequently, Health Care moved for leave of court to appear as an amicus curiae. The commissioner and the Attorney General notified the court that they did not oppose Health Care’s motion. On February 1, 2000, a single justice entered the following order:

“It is ORDERED that no action will be taken on the motion[]. Counsels’ appearances will suffice to entitle [Health Care] to receive copies of all papers and to express [54]*54[its] positions as to any matter in writing, and, with leave of court, in oral argument. [Health Care] will not have party status.”

After having filed two status reports with the court, the commissioner and the Attorney General moved, on March 20, 2000, for the approval of a plan of rehabilitation for HPHC. On March 21, 2000, the single justice entered an order which: (1) addressed the manner of notifying interested persons of the proposed plan; (2) established a deadline of April 10, 2000, for the filing of written oppositions to the proposed plan; (3) established a deadline of April 18, 2000, for any response by the commissioner and the Attorney General to any opposition; and (4) scheduled a hearing on the motion for April 27, 2000. On April 10, Health Care, asserting that the evidentiary disclosure supporting the commissioner’s proposed rehabilitation plan was inadequate, filed a motion and memorandum of law opposing the proposed plan, or alternatively, requesting that the plan be amended. On April 18, the commissioner and the Attorney General filed an amended plan for HPHC’s rehabilitation (amended plan), as well as a consolidated response to the various oppositions filed (including Health Care’s opposition) to the initially proposed plan.7 The single justice held a hearing concerning the amended plan on April 27, at which Health Care, among others, was heard. On May 24, the single justice entered a memorandum of decision addressing and rejecting objections, including Health Care’s, to the amended plan, and, an order approving the amended plan. After the commissioner filed her certificate (as had been ordered by the single justice) stating that she had completed the steps necessary to implement the amended plan, the single justice, on June 21, 2000, entered an order dismissing the proceeding, vacating the temporary injunction, and discharging the commissioner as temporary receiver.8 Health Care filed notices of appeal from the orders approving the amended plan, and dismissing the receivership proceedings.

[55]*55On appeal, Health Care argues that the single justice erred in approving the amended plan, and in terminating the receivership proceedings, “under circumstances where the [rjeceiver failed to disclose to the court and the affected parties critical financial data, health care business plans and other reports that served as the exclusive basis upon which the [rjeceiver relied in recommending that the receivership be terminated.” The specific documents that Health Care claims should have been disclosed are (1) HPHC’s “turnaround plan,” (2) HPHC’s “2000 business plan,” and (3) an outside accounting firm’s (KPMG Peat Mar-wick) review of the business plan (collectively, documents). Although the commissioner, in her affidavit in support of the motion for the approval of the amended plan, identified, and to some extent summarized, these documents, Health Care argues that the single justice was required to review these documents independently instead of relying on the commissioner’s reference to, and summary of, these documents in her affidavit.

The appellees, the commissioner and the Attorney General, argue that Health Care lacks standing to appeal, and, that, in any event, the single justice acted within his discretion in not requiring the submission of the documents. The appellees further argue that this appeal should be dismissed as equitably moot because the amended plan has been implemented and the receivership has been terminated.

1. Health Care properly does not dispute the appellees’ claim that it is not a “party aggrieved” within the meaning of G. L. c. 231, § 114, and has no standing to appeal.9 Instead, Health Care contends that the court should exercise its discretion to hear Health Care’s appeal because the appeal involves an issue of significant public interest. In addition, Health Care maintains that other factors weigh in favor of the court’s exercising its discretion, for example, that Health Care was treated like a party before the single justice, and that the appellees never argued below that Health Care lacked standing, but had they, that Health Care could have moved to intervene.

[56]*56Health Care’s latter arguments, listed as “other factors,” provide no basis to accord it the standing it seeks. The single justice made it clear, in his February 1, 2000, order, that Health Care would not have party status in the proceedings, and he essentially treated Health Care, in keeping with its request, as an amicus curiae and not as a party. The issue of standing may be raised at any time. See Ginther v. Commissioner of Ins., 427 Mass. 319, 322 (1998); Litton Business Sys., Inc. v. Commissioner of Revenue, 383 Mass. 619, 622 (1981). See also Mass. R. Civ. P. 12 (h) (3), 365 Mass. 754 (1974).

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Bluebook (online)
746 N.E.2d 513, 434 Mass. 51, 2001 Mass. LEXIS 203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-receivership-of-harvard-pilgrim-health-care-inc-mass-2001.