KAEGI v. ANDOVER SUBACUTE REHABILITATION CENTER I

CourtDistrict Court, D. New Jersey
DecidedJune 18, 2021
Docket2:21-cv-02120
StatusUnknown

This text of KAEGI v. ANDOVER SUBACUTE REHABILITATION CENTER I (KAEGI v. ANDOVER SUBACUTE REHABILITATION CENTER I) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
KAEGI v. ANDOVER SUBACUTE REHABILITATION CENTER I, (D.N.J. 2021).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

ESTATE OF JOSEPH MAGLIOLI, et Civ. No. 21-2114 (KM)(JBC) al. Civ. No. 21-2120 (JM) (JBC) PLAINTIFFS, v. ANDOVER SUBACUTE OPINION REHABILITATION CENTER I, et al.

DEFENDANTS.

ESTATE OF WANDA KAEGI AND VICTOR KAEGI, et al.

PLAINTIFFS, v. ANDOVER SUBACUTE REHABILITATION CENTER I, et al.

KEVIN MCNULTY, U.S.D.J.: These related actions concern state-law claims of negligence, wrongful death, and medical malpractice of behalf of residents and patients at Defendants’ nursing care facilities regarding Defendants’ allegedly substandard response to the COVID-19 outbreak. Plaintiffs initially filed these actions in New Jersey State Court. Defendants then removed the matters under 28 U.S.C §§ 1441 and 1442, contending that (1) Plaintiffs’ claims were preempted by the Public Readiness and Emergency Preparedness (“PREP”) Act and (2) Defendants were entitled to a federal forum as “federal officers” or the equivalent. (6605 Action DE 1; 6985 Action DE 1.)1 On August 12, 2020, I

1 Citations to the record will be abbreviated as follows. Citations to page numbers refer to the page numbers assigned through the Electronic Court Filing system, unless otherwise indicated: remanded both actions to the Superior Court of New Jersey, Sussex County (the “Remand Order”), concluding, inter alia, that, while the PREP Act may limit the range of what Plaintiffs can sue for, it does not preclude all state law claims. (6605 Action DE 19, DE 20; 6985 Action DE 14, DE 15.) In so holding, I found that the PREP Act leaves room for ordinary claims of negligent care in a state court forum. (6605 Action DE 19; 6985 Action DE 14.) Additionally, I rejected Defendants’ argument that they were “acting under” a federal officer or agency in complying with federal regulations while operating privately owned nursing facilities. (Id.) On September 9, 2020, Defendants filed a Notice of Appeal regarding that Remand Order. (6605 Action DE 24; 6985 Action DE 19.) On January 8, 2021, the United States Department of Health and Human Services (“HHS”) issued Advisory Opinion 21-01 (“AO 21-02”) holding that (1) the PREP Act is a “complete preemption” statute and that, when it applies, it triggers exclusive federal jurisdiction; and (2) the Fourth Amendment to the HHS Secretary’s Declaration Under the [PREP] Act for Medical Countermeasures Against COVID-19 “provides the underlying basis for invoking the Grable doctrine[2] with respect to all claims for loss caused by,

“DE” = Docket entry number. “6605 Action” = Maglioli et al. v. Andover Subacute Rehabilitation I et al., Civ. No. 20-6605-KM-ESK “6985 Action” = Kaegi et al. v. Scheinbaum et al., Civ. No. 20-6985-KM-ESK “2114 Action” = Maglioli et al v. Andover Subacute Rehabilitation Center I et al., Civ. No. 21-2114-KM-JBC “2120 Action” = Kaegi et al v. Andover Subacute Rehabilitation Center I et al, Civ. No. 21-2120-KM-JCB “5506 2AC” = The Second Amended Complaint filed by Plaintiffs in 20-cv-6605 (DE 1-1), which is duplicated in 21-cv-2114 (DE 1-3) “6985 AC” = The Amended Complaint filed by Plaintiffs in 20-cv-6985 (DE 1-1), which is duplicated in 21-cv-2120 (DE 1-2) 2 Grable & Sons Metal Products, Inc. v. Darue Engineering & Mfg., 545 U.S. 308, 312 (2005) (recognizing that “a federal court ought to be able to hear claims recognized under state law that nonetheless turn on substantial questions of federal law, and thus justify resort to the experience, solicitude, and hope of uniformity that a federal forum offers on federal issues.”) arising out of, relating to, or resulting from the administration to or the use by an individual of a covered countermeasure.” HHS, Office of the General Counsel, “Advisory Opinion No. 21-01 on the Public Readiness and Emergency Preparedness Act Scope of Preemption Provision” (Jan. 8, 2021), available at https://www.hhs.gov/guidance/sites/default/files/hhs-guidance- documents/2101081078-jo-advisory-opinion-prep-act-complete-preemption- 01-08-2021-final-hhs-web.pdf. On February 8, 2021, Defendants filed successive notices of removal, contending that AO 21-02 is “new controlling authority which unequivocally confers federal jurisdiction to the underlying claims.” (2114 Action DE 1; 2120 Action DE 1.) On March 10, 2021, Plaintiffs filed motions to remand the actions to state court. (2114 Action DE 7; 2120 Action DE 7.) On May 28, 2021, Defendants filed a motion to stay the actions until the United States Court of Appeals for the Third Circuit resolves their appeal of the August 12 Remand Order. (2114 Action DE 20; 2120 Action DE 19.) Defendants rely on the United States Supreme Court’s recent decision in BP P.L.C. v. Mayor and City Council of Baltimore, 141 S. Ct. 1532 (2021) which, they contend, requires Courts of Appeal to review a district court’s entire remand order when a defendant relies on 28 U.S.C. §§ 1442 or 1443 as a basis for removal. (Id.) Defendants submit that, under BP, the Third Circuit will review the entirety of the August 12 Remand Order, including the issues of complete preemption under the PREP Act. (Id.) Thus, Defendants contend, because the same issues before this Court on Plaintiffs’ second remand motions are the same as those issues presently before the Third Circuit on the appeal of this Court’s initial Remand Order, a stay of the pending remand motions is warranted. For the reasons provided herein, I will grant Defendants motion and stay the current proceedings. I. Summary a. Factual Allegations The factual allegations were detailed in this Court’s August 12 Opinion. I quote that summary, but recount only those facts pertinent to resolution of Defendants’ stay motions: The allegations of the complaints arise from the treatment of residents at two nursing facilities in Andover, New Jersey. “Defendant Andover Subacute Rehabilitation Center I is located at: 1 Obrien Lane, Lafayette Township, NJ 07848.” (6605 2AC ¶ 3) “Defendant Andover Subacute Rehabilitation Center II is located at: 99 Mulford Road, Lafayette Township, New Jersey 07848.” (Id. ¶4) “Defendant Alliance Healthcare is a New Jersey domiciled company, with a business address at:1382 Lanes Mill Road, Lakewood, New Jersey 08701, USA, and is owned and/or operated by Defendant Chaim ‘Mutty’ Scheinbaum and Defendant Louis Schwartz.” (Id. ¶ 6)

Plaintiffs were all residents or patients at Defendants’ facilities and died while in their care, allegedly as a result of Defendants’ failure to exercise due care with respect to coronavirus infections. (Id. ¶ 2) . . .

On March 26, 2020, the Andover Centers fell victim to a COVID-19 outbreak. (Id. ¶ 12) Nevertheless, Plaintiffs allege, “Defendants failed to take the proper steps to protect the residents and/or patients at their facilities from the Covid-19 virus.” (Id. ¶ 13) Management, say Plaintiffs, at first provided only a limited number of masks to employees of the facilities, restricting them to the registered nurses. (Id. ¶ 14) Meanwhile, others who interacted with residents and patients, such as housekeepers, therapists, and nursing assistants, were not provided masks. (Id.)

Plaintiffs more generally allege, however, that Defendants are liable for failing to observe a wide range of appropriate safety precautions, specifically:

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Bluebook (online)
KAEGI v. ANDOVER SUBACUTE REHABILITATION CENTER I, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kaegi-v-andover-subacute-rehabilitation-center-i-njd-2021.