Keith Feder, M.D., Inc. v. Nestle USA, Inc.

CourtDistrict Court, C.D. California
DecidedJanuary 13, 2025
Docket2:24-cv-06817
StatusUnknown

This text of Keith Feder, M.D., Inc. v. Nestle USA, Inc. (Keith Feder, M.D., Inc. v. Nestle USA, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keith Feder, M.D., Inc. v. Nestle USA, Inc., (C.D. Cal. 2025).

Opinion

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘Oo’ JS-6 Case No. 2:24-cv-06817-CAS(BFMx) Date January 13, 2025 Title Keith Feder, M.D., Inc. v. Nestlé USA, Inc. et al

Present: The Honorable CHRISTINA A. SNYDER Catherine Jeang Laura Elias N/A Deputy Clerk Court Reporter / Recorder Tape No. Attorneys Present for Plaintiffs: Attorneys Present for Defendants: Jonathan Stieglitz Douglas Smith Proceedings: ZOOM HEARING RE: MOTION TO REMAND (Dkt. 21, filed on November 28, 2024) I. INTRODUCTION On July 10, 2024, Keith Feder M_D., Inc. (“plaintiff”) filed a complaint in Los Angeles Superior Court against Nestlé USA, Inc. (“defendant”) and ten doe defendants, asserting three claims for relief: (1) negligent misrepresentation; (2) promissory estoppel; and (3) enforcement pursuant to 29 U.S.C. § 1132(a)(1)(B) for failure to pay Employee Retirement Income Security Act (“ERISA”) plan benefits. Dkt. 1-2 (“Compl.”) 4] 60-79. On August 12, 2024, defendant removed the case to this Court on the basis of federal question jurisdiction and diversity jurisdiction. Dkt. 1 (“Notice of Removal”). On October 16, 2024, defendant filed a motion to dismiss. Dkt. 19. On November 28, 2024, plaintiff filed a motion for leave to file a first amended complaint. Dkt. 20. The same day, plaintiff filed its first amended complaint. Dkt. 22 (“FAC”). On December 9, 2024, the Court granted plaintiff leave to file its FAC, nunc pro tunc, and denied defendant’s motion to dismiss as moot. Dkt. 24. Plaintiff's FAC amended the cover page’s claimed damages to $50,000 from $25,000 and eliminated its ERISA claim. See generally FAC. Also on November 28, 2024, plaintiff filed the instant motion to remand the case to Los Angeles Superior Court. Dkt. 21 (“Mot.”). On December 23, 2024, defendant filed its opposition. Dkt. 29 (“Opp.”). On December 24, 2024, plaintiff filed its reply. Dkt. 30 (“Reply”).

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES —- GENERAL ‘Oo’ JS-6 Case No. 2:24-cv-06817-CAS(BFMx) Date January 13, 2025 Title Keith Feder, M.D., Inc. v. Nestlé USA, Inc. et al

On December 19, 2024, defendant filed a motion to dismiss plaintiff's FAC. Dkt. 27. On December 22, 2024, plaintiff filed its opposition. Dkt. 28. A hearing on defendant’s motion to dismiss 1s set for January 27, 2025. On January 13, 2025, the Court held a hearing. Having carefully considered the parties’ arguments and submissions, the Court finds and concludes as follows. II. BACKGROUND Plaintiff is a California medical corporation. FAC § 1. In his FAC, plaintiff alleges that defendant’s representative and agent is Anthem Blue Cross Life and Health Insurance Co. Id. 43. Plaintiff alleges that he did not have a written contract with the relevant health plan and received no referrals therefrom. Id. § 10. Plaintiff explains that insurers use the terms usual, reasonable, customary, and allowed “all to mean an average payment for a procedure provided by similarly situated medical providers within similarly situated areas or places of practice.” Id. J 13. These terms are abbreviated “UCR” by the industry. Id. Plaintiff alleges that when a provider like plaintiff is told that defendant or Anthem is going to pay a claim based on UCR, plaintiff expects that defendant or Anthem will use the Fair Health database to calculate the exact dollar amount that plaintiff will be paid. Id. § 19. Plaintiff alleges that on September 13, 2022, patient BS received a surgical procedure from plaintiff. Id. 921. Prior to the procedure, on September 8, 2022, plaintiff alleges that an employee of plaintiff obtained representations from an Anthem representative regarding how plaintiff would be paid for its services, clarifying the patient’s responsibility and defendant’s responsibility for payment. Id. 4] 22-25. Plaintiff alleges that at no time prior to the provision of services was plaintiff advised that patient’s “policy or certificate of insurance was subject to certain exclusions, limitations, or qualifications, which might result in the denial of coverage, limitation of payment or any other method of payment unrelated to the UCR rate.” Id. § 32. Plaintiff claims that despite Anthem’s representations on its behalf, defendant knew it would be paying the Medicare rate rather than the UCR rate and intended to induce plaintiff to provide the medical services on the basis of its misrepresentations. Id. 4 34-36. Following the procedure, plaintiff alleges, it submitted to defendant through Anthem the requisite billing information and bill totaling $50,000. Id. 4 39. Plaintiff claims that defendant “processed the bills and made a payment of $621.99.” Id. § 41.

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA CIVIL MINUTES — GENERAL ‘Oo’ JS-6 Case No. 2:24-cv-06817-CAS(BFMx) Date January 13, 2025 Title Keith Feder, M.D., Inc. v. Nestlé USA, Inc. et al

According to plaintiff, this amount “was well below the UCR amount represented during the separate oral communications” plaintiff had with defendant. Id. § 42. Il. LEGAL STANDARD A motion for remand is the proper procedure for challenging removal. Remand may be ordered either for lack of subject matter jurisdiction or for any defect in removal procedure. See 28 U.S.C. § 1447(c). The Court strictly construes the removal statutes against removal jurisdiction, and jurisdiction must be rejected if there is any doubt as to the right of removal. See Gaus v. Miles, Inc., 980 F.2d 564, 566 (9th Cir. 1992). The party seeking removal bears the burden of establishing federal jurisdiction. See Prize Frize, Inc. v. Matrix, Inc., 167 F.3d 1261, 1265 (9th Cir. 1999). The defendant also has the burden of showing that it has complied with the procedural requirements for removal. Virginia A. Phillips, J. & Karen L. Stevenson, J., Rutter Group Prac. Guide Fed. Civ. Pro. Before Trial § 2:3741 (The Rutter Group 2020). Under 28 U.S.C. § 1446(b), the defendant must file the notice of removal within 30 days after being served with a complaint alleging a basis for removal. When there are multiple defendants, all defendants named in the complaint and who have been properly joined and served in the action must also join in the removal. Hewitt v. City of Stanton, 798 F.2d 1230, 1232 (9th Cir. 1986). This is known as the rule of unanimity. See Chicago. Rock Island & Pac. Ry. v. Martin, 178 U.S. 245 (1900); see also Schwarzer, supra, § 2:905.2. If the defendant’s removal notice fails to meet the procedural requirements of § 1446(b), the court may remand the action based on the plaintiff's tumely motion. McAnally Enters., Inc. v. McAnally, 107 F. Supp. 2d 1223, 1226 (C_D. Cal. 2000). Pursuant to 28 U.S.C. § 1447(c), a motion to remand based on any defect other than subject matter jurisdiction must be made within 30 days after the filing of the notice of removal. IV. DISCUSSION Plaintiff argues that the law in this Circuit is well settled on the question at issue. Mot. at 1.

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Bluebook (online)
Keith Feder, M.D., Inc. v. Nestle USA, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/keith-feder-md-inc-v-nestle-usa-inc-cacd-2025.