Intermountain Stroke Center, Inc. v. Intermountain Health Care, Inc.

638 F. App'x 778
CourtCourt of Appeals for the Tenth Circuit
DecidedFebruary 9, 2016
Docket14-4045
StatusUnpublished
Cited by13 cases

This text of 638 F. App'x 778 (Intermountain Stroke Center, Inc. v. Intermountain Health Care, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Intermountain Stroke Center, Inc. v. Intermountain Health Care, Inc., 638 F. App'x 778 (10th Cir. 2016).

Opinion

ORDER AND JUDGMENT *

JEROME A. HOLMES, Circuit Judge.

Plaintiffs-Appellants Dr. Nancy Futrell and the Intermountain Stroke Center *780 (“Stroke Center”) filed suit against Defendants-Appellees Intermountain Health Care, IHC Health Services, and Selec-tHealth, bringing various claims under Utah law and the Lanham Act, 15 U.S.C. §§ 1051-1141. The district court dismissed the Lanham Act claim and remanded the non-federal claims to Utah state court. We exercise jurisdiction pursuant to 28 U.S.C. § 1291 and affirm.

I

A

Intermountain Health Care is a large network of hospitals, clinics, surgery centers, and physicians. Within its ambit are wholly-owned subsidiaries IHC Health Services, which operates medical facilities throughout the State of Utah, and Selec-tHealth, a health-maintenance organization. All of these entities (hereinafter collectively “Intermountain”) are Utah not-for-profit corporations.

Before closing its doors in 2013, the Stroke Center was a Utah corporation principally conducting business in Salt Lake City. It provided “same-day and next-day treatment” to patients presenting with strokes and transient ischemic attacks (“TIAs”). 1 Aplt.App. at 260 (First Am. Compl., filed Oct. 7, 2013). One of its staff members was Dr. Nancy Futrell, a Utah-licensed neurologist who holds herself out as a “speciali[st] in the treatment of stroke.” Id. at 251. According to Dr. Futrell, the Stroke Center was “the only outpatient, non-emergency facility in Utah to provide non-emergency, same-day and next-day stroke and TIA treatment by.... a stroke specialist” and the “only” facility in the state that offered these services at rates significantly lower than prevailing hospital rates. Id. at 260.

. On March 24, 2013, the Stroke Center discontinued operations. Believing that Intermountain’s conduct was the impetus for the Stroke Center’s cessation of business, Dr. Futrell and the Stroke Center (hereinafter collectively “Plaintiffs”) filed a lawsuit against Intermountain in Utah state court on June 4, 2013. Plaintiffs originally alleged violations of Utah’s Truth in Advertising Act (“UTIAA”) and other state-law claims sounding in tort. After Plaintiffs added a Lanham Act claim to their complaint, Intermountain removed the action to .the United States District Court for the District of Utah.

The amended complaint alleges that Intermountain misled prospective consumers regarding the nature and quality of its stroke and TLA services. Plaintiffs’ claims focus on certain statements included in Intermountain’s advertising and marketing materials: specifically, (1) general representations made “[tjhrough [Intermountain’s] marketing efforts” that Intermountain follows “best medical practices,” provides the “best possible care,” and has a mission of “[providing excellent care of the highest quality at an affordable cost,” id. at 269-70; and (2) three more specific representations made through Intermountain’s (a) website and “Annual Stroke Report,” (b) institutional code of ethics (“Ethics Code”), and (c) *781 “Life After a Stroke or TIA” pamphlet (“Stroke Pamphlet”), id. at 272-80. According to Plaintiffs, the general statements are literally false, and the specific statements could mislead consumers about the number of Intermountain physicians specializing in stroke and TIA treatment, the efforts made by Inter-mountain to avoid prohibited sources of revenue, and the proper scope of post-stroke or post-TIA care.

Intermountain moved to dismiss Plaintiffs’ complaint pursuant to Federal Rule of Civil Procedure 12(b)(6). With respect to the Lanham Act claim—the only claim that the district court ultimately addressed on the merits—Intermountain asserted that all of the statements attributed to it by Plaintiffs were not actionable because they were “mere statements of opinion or scientific disagreement,” or because they “[we]re indisputably not ‘false.’ ” Id. at 858 (Mot. to Dismiss, filed Oct. 9, 2013). Additionally, Intermountain urged the district court to dismiss the Lanham Act claim based on its view that Plaintiffs had failed to allege any competitive injury caused by Intermountain’s conduct.

B

On March 31, 2014, the district court issued a memorandum decision and order granting Intermountain’s motion to dismiss. The district court’s principal conclusion was that Plaintiffs had failed to state a plausible claim for relief under the Lan-ham Act. In so ruling, the court observed that “[m]any of [Intermountain’s] statements are not assertions of fact for which [Intermountain] may be held liable under the Lanham Act. With respect to the remaining statements, Plaintiffs have ... not adequately alleged that the statements are misleading....” Id. at 15 (Mem. Decision & Order, filed Mar. 31, 2014).

More specifically, the district court rejected Plaintiffs’ contention that Inter-mountain’s general marketing statements—notably, those pertaining to “best medical practices”—could serve as the predicate for a Lanham Act claim. Id. It determined that these statements were “not statements of fact” and likened them to “[expressions of sales ‘puffery.’ ” Id. at 16. In fact, the court expressly classified these marketing claims as “paradigmatic puffery,” id. at 20, and stated that its view of them would not change “even if [the statements were] linked to a particular product or service and even if false,” id. at 18. At bottom, the court was convinced that no reasonáble consumer would have relied upon Intermountain’s general statements when choosing a stroke or TIA provider.

The court then assessed the three sets of specific statements and deemed them inadequate for purposes of a Lanham Act claim. It found the challenged statements concerning the number of stroke specialists “true and not misleading,” id. at 21, because Intermountain had truthfully represented how many of its physicians were competent in stroke and TIA treatment and explained that “subspecialists [were] available to assist stroke patients with ongoing medical needs,” id. at 22. Similarly, the court found “true and not misleading” Intermountain’s Ethics Code standard pertaining to compliance with federal physician-referral laws. Id. at 23. It further determined that Plaintiffs had not “allege[d] a competitive injury associated with th[e] statements” in the Ethics Code. Id. at 27. Lastly, the district court concluded that the statements at issue in the Stroke Pamphlet—which very generally explained stroke and post-stroke concerns—were “not misleading as to the nature, characteristics, or qualities of [Inter-mountain’s] services.” Id. Indeed, the court opined, the Stroke Pamphlet could *782

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Bluebook (online)
638 F. App'x 778, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intermountain-stroke-center-inc-v-intermountain-health-care-inc-ca10-2016.