Navajo Health Foundation-Sage Memorial Hospital, Inc. v. Burwell

86 F. Supp. 3d 1211, 2015 U.S. Dist. LEXIS 19611, 2015 WL 711072
CourtDistrict Court, D. New Mexico
DecidedFebruary 5, 2015
DocketNo. CIV 14-0958 JB/GBW
StatusPublished
Cited by9 cases

This text of 86 F. Supp. 3d 1211 (Navajo Health Foundation-Sage Memorial Hospital, Inc. v. Burwell) is published on Counsel Stack Legal Research, covering District Court, D. New Mexico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Navajo Health Foundation-Sage Memorial Hospital, Inc. v. Burwell, 86 F. Supp. 3d 1211, 2015 U.S. Dist. LEXIS 19611, 2015 WL 711072 (D.N.M. 2015).

Opinion

MEMORANDUM OPINION AND ORDER

JAMES O. BROWNING, District Judge.

THIS MATTER comes before the Court on the Defendants’ Motion to Dismiss Under Fed.R.Civ.P. 12(b)(3) or Motion to Transfer Under 28 U.S.C. § 1401(a),1 filed November 25, 2014 (Doc. 8)(“Motion”). The Court held a hearing on January 27,-2015. The primary issues are: (i) whether the United States District Court for the District of New Mexico is a proper venue for this case under 28 U.S.C. § 1391(e)(1)(A); (ii) whether the District of New Mexico is a proper venue for this case under 28 U.S.C. § 1391(e)(1)(B); and (iii) whether the Court will transfer the case to the United States District Court for the District of Arizona under 28 U.S.C. § 1404(a). First, the Court concludes the District of New Mexico is a proper venue for this case under § 1391(e)(1)(A), because Defendant Frank Dayish is domiciled in New Mexico. Second, the Court holds that the District of New Mexico is not a proper venue for this case under § 1391(e)(1)(B), because a “substantial part of the events or omissions giving rise to the claim” did not occur in New Mexico. 28 -U.S.C. § 1391(e)(1)(B). Third, the Court will not transfer the case to the District of Arizona under § 1404(a), because Sage Hospital filed suit in the District of New Mexico, and because the District of New Mexico is a more convenient [1214]*1214forum for the witnesses, the parties, and for obtaining the relevant documents than the District of Arizona is. Consequently, the Court will deny the Motion.

FACTUAL BACKGROUND

This case arises from the decision of the Indian Health Service (“IHS”)2 not to renew its contract with Plaintiff Navajo Health Foundation — Sage Memorial Hospital, Inc. to provide healthcare to Navajo Indians on the Navajo Reservation under the Indian Self Determination and Education Assistance Act, 25 U.S.C. § 450 (“ISDEA”).3 The Court takes its facts from (i) the First Amended Complaint, filed November 24, 2014 (Doc. 5)(“Com-plaint”); (ii) the documents attached to the Motion; (iii) the documents attached to the Plaintiffs Opposition to Motion to Dismiss or Transfer, filed December 11, 2014 (Doc. 14)(“Response”); and (iv) the documents attached to the Defendants’ Reply in Support of Their Motion to Dismiss, filed December 29, 2014 (Doc. 18)(“Reply”).4

1. The Parties.

Sage Hospital is a private non-profit corporation that has owned and operated a healthcare facility in Ganado, Arizona— which lies within the Navajo Reservation— since 1974. See Complaint ¶ 6, at 4. Sage Hospital sits approximately 192 miles from Albuquerque, New Mexico; 272 miles from Phoenix, Arizona; and two miles from the New Mexico border. See Declaration of Christi El-Meligi ¶ 11, at 9, filed December 11, 2014 (Doc. 14-1)(“E1-Meligi Declaration”). The Navajo Nation Council has designated Sage Hospital a “tribal organization” for the purpose of contracting with the Department of Health and Human Services (“HHS”). Complaint ¶ 6, at 4. Sage Hospital provides healthcare services to Navajo Indians living in the Ganado, Linlichee, Klagetoh, Wide Ruins, Lower Greasewood Springs, Cornfields, Nazlini, and Steamboat chapters of the Navajo Nation — which are all located in Arizona. See History, Navajo Health Foundation— Sage Memorial Hospital, http:// sagememorial.com/about-us/history (last visited Nov. 4, 2014).

Defendant Sylvia Mathews Burwell is the HHS Secretary. Complaint ¶ 7, at 4. As Secretary, Burwell is responsible for conducting all HHS duties, including contracting on the United States of America’s behalf with tribal organizations to provide healthcare to Native Americans. See Complaint ¶ 7, at 4. Defendant Yvette Rou-bideaux is IHS’ Acting Director. See Complaint ¶ 8, at 4. Roubideaux is responsible for carrying out all IHS duties, including contracting with tribal organizations to provide healthcare to American Indians. See Complaint ¶ 8, at 4.

Defendant John Hubbard, Jr., is the Area Director of the Navajo Area IHS— which is based in Window Rock, Arizona. See Complaint ¶ 9, at 4-5; Declaration of John Hubbard ¶ 1, at 1, filed November 25, 2014 (Doc. 8-5)(“Hubbard Declaration”). Hubbard’s personal residence is in Ganado, Arizona. See Hubbard Declara[1215]*1215tion ¶ 5, at 2. The Navajo Area IHS is responsible for healthcare services throughout the Navajo Nation. See Hubbard Declaration ¶ 1, at T. The Navajo Area IHS office sits approximately 168 miles from Albuquerque and 282 miles from Phoenix. See El-Meligi Declaration ¶ 11, at 9. Hubbard directs all Navajo Area IHS programs and approximately 4,000 staff located at the Kayenta Health Center in Arizona, the Chinle Hospital in Arizona, the Shiprock Northern Navajo Medical Center in New Mexico, the Crownpoint PHS Hospital in New Mexico, and the Gallup Indian Medical Center in New Mexico. See Hubbard Declaration ¶ 1, at 2. Forty percent of the Navajo Area IHS user population resides in New Mexico, fifty-five percent resides in Arizona, and five percent resides in Utah. See Hubbard Declaration ¶ 4, at 2. The Navajo Nation’s land base is larger in Arizona than in New Mexico or Utah. See Hubbard Declaration ¶ 4, at 2. None of Hubbard’s official duties related to Sage Hospital or its IHS contract has any connection to New Mexico. See Hubbard Declaration ¶ 3, at 2.

Defendant Frank Dayish is the Contracting Officer for the Navajo Area IHS. See Complaint ¶ 10, at 5. Dayish’s personal residence is in Gallup, New Mexico. See Declaration of Frank Dayish ¶ 3, at 2, filed November 25, 2014 (Doc. 8-4)(“Dayish Declaration”). Dayish is responsible for negotiating and maintaining IHS’ contracts throughout the Navajo Reservation, including its contract with Sage Hospital. See Complaint ¶ 10, at 5. Dayish has the authority to sign ISDEA contracts and funding agreements with Sage Hospital and to award funds under those agreements. See Complaint ¶ 10, at 5. Dayish’s official duty station is in Window Rock, and Window Rock is where he performs all of his official duties. See Dayish Declaration ¶ 3, at 1.

2. Sage Hospital’s Tumultuous History.

From 1974 to 2007, Sage Hospital’s facilities grew increasingly obsolete, and the quality of its healthcare services plummeted. See Complaint ¶ 12, at 6. Consequently, by 2007, Sage Hospital was fighting multiple regulatory and financial battles to stay afloat. See Complaint ¶ 12, at 6. The Centers for Medicare and Medicaid Services5 was in the process of terminating Sage Hospital’s certification, the Arizona Department of Health Services was threatening to revoke Sage Hospital’s Rural General Hospital Healthcare license, the federal Environmental Protection Agency had.

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Bluebook (online)
86 F. Supp. 3d 1211, 2015 U.S. Dist. LEXIS 19611, 2015 WL 711072, Counsel Stack Legal Research, https://law.counselstack.com/opinion/navajo-health-foundation-sage-memorial-hospital-inc-v-burwell-nmd-2015.