Oji Fit World, LLC v. District of Columbia

CourtDistrict of Columbia Court of Appeals
DecidedOctober 24, 2024
Docket22-CV-0821
StatusPublished

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Opinion

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DISTRICT OF COLUMBIA COURT OF APPEALS

No. 22-CV-0821

OJI FIT WORLD, LLC, et al., APPELLANTS,

V.

DISTRICT OF COLUMBIA, APPELLEE.

Appeal from the Superior Court of the District of Columbia (2021-CA-001259-B)

(Hon. William M. Jackson, Motions Judge) (Hon. Hiram E. Puig-Lugo, Motions Judge) (Hon. Ebony M. Scott, Motions Judge)

(Submitted April 17, 2024 Decided October 24, 2024)

Michael Lasley was on the brief for appellants Oji Fit World, LLC, and Amaka Oji.

Brian L. Schwalb, Attorney General for the District of Columbia, Caroline S. Van Zile, Solicitor General, Ashwin P. Phatak, Principal Deputy Solicitor General, Thais-Lyn Trayer, Deputy Solicitor General, and Brian J. Leitch and Eric M. Levine, Assistant Attorneys General, were on the brief for appellee.

Before EASTERLY and DEAHL, Associate Judges, and THOMPSON, Senior Judge.

EASTERLY, Associate Judge: Appellants, Amaka Oji and Oji Fit World, LLC

(“OFW”), appeal from the Superior Court’s order granting summary judgment in 2

favor of appellee the District of Columbia on its claims under the D.C. False Claims

Act and the common law doctrine of unjust enrichment and ultimately awarding the

District $1,001,362.50 in treble damages and $497,000 in civil penalties. For the

reasons set forth below, we affirm the summary judgment order, but we remand for

further consideration of damages and penalties.

I. Factual and Procedural Background

The D.C. Department of Health Care Finance (“DHCF”) approved Ms. Oji as

a Medicaid provider in 2011. In this role, Ms. Oji was eligible for reimbursement

from the District Medicaid program for certain wellness services, including fitness

training, that she provided to Medicaid beneficiaries with intellectual and

developmental disabilities. Ms. Oji provided these services through a number of

trainers employed by OFW, of which she was the sole owner and manager. In the

span of approximately three and a half years, between 2012 and 2015, Ms. Oji and

her company submitted more than 24,000 claims for reimbursement to DHCF.

This billing caught the attention of DHCF, the Office of the Inspector General

for the Centers for Medicare and Medicaid Services, and the Federal Bureau of

Investigation, each of which investigated Ms. Oji and her company for fraudulent

Medicaid billing practices. In April 2021, the District of Columbia filed suit against

Ms. Oji and her company under D.C. Code § 2-381.02 (the False Claims Act) and 3

the common law doctrine of unjust enrichment. The complaint alleged that between

2012 and 2015, Ms. Oji, through her company, regularly overbilled DHCF for

Medicaid payments. Trainers employed by OFW would submit “daily fitness

reports” (but not timecards) to OFW’s administrative employees following each

training session, and Ms. Oji, who made all final billing decisions, would submit

corresponding claims for reimbursement to DHCF. Regardless of how long a

training session actually lasted, Ms. Oji almost always “billed Medicaid and

accepted payment for a full hour of service.” For example, Ms. Oji billed a full hour

for sessions where the trainer’s daily fitness report reflected that the beneficiary had

canceled their session or had not shown up, or that the session had taken place but

lasted less than an hour, or that a trainer had provided back-to-back trainings with

different clients in locations that would have required significant travel time to move

between. Although the complaint provided some specific examples of daily fitness

reports that did not accord with Ms. Oji’s corresponding claim for reimbursement

(and noted that “[h]undreds of daily fitness reports lack information necessary to

assess proper billing”), it did not specify an exact number of times Ms. Oji and her

company allegedly overbilled, nor did it provide a comprehensive list of dates on

which the overbilling occurred.

Ms. Oji (but not OFW) filed an answer, which the District moved to strike on

the ground that it “failed to respond to the majority of individual allegations” or 4

“assert a proper general denial of all allegations” in the complaint, in violation of

Super. Ct. Civ. R. 8(b). Ms. Oji did not oppose the motion to strike, and the Superior

Court (Hon. William M. Jackson) granted it. Ms. Oji subsequently filed a revised

answer. 1 Neither her first nor second answer raised any affirmative defenses related

to laches or any statute of limitations.

At a scheduling conference in October 2021, the Superior Court instructed

counsel for Ms. Oji and OFW that he needed to file an answer on behalf of the

corporation. The court also sua sponte expressed concern about the length of time

that had elapsed between the alleged fraudulent conduct in 2012-2015 and the

eventual filing of the District’s lawsuit in 2021. To the court’s first point, counsel

for Ms. Oji and her company stated that his failure to file an answer on OFW’s behalf

had been an oversight. To the court’s second point, the District explained that its

suit was an outgrowth of the DHCF investigation, which launched in 2015 and had

provided Ms. Oji and OFW with ample notice of the fraud allegations; that the

lawsuit was filed within the statute of limitations; and that Ms. Oji and her company

had not filed a motion to dismiss the District’s suit on statute of limitations grounds.

1 In a later order, the Superior Court mistakenly stated that the second answer had also been stricken. The Superior Court docket, however, indicates that although the District filed a motion to strike Ms. Oji’s first revised answer, that motion was denied. 5

In response, counsel for Ms. Oji and her company did not contest the timeliness of

the District’s action; instead, he argued that his clients had not been given adequate

information about the basis for the suit. The court refused to entertain this lack-of-

specificity argument, admonishing counsel for Ms. Oji and OFW that

[Y]ou need to put that in writing . . . [I]f you [have] issues or claims of laches . . . or whatever you have claimed, then you need to file something . . . [I]f you have appropriate request[s] for discovery from the Government, then make those requests in writing.

The court then underscored its statements, observing, “[t]his is not an oral argument

where I’m just going to say, okay, you said this and I’m going to order that. . . . [It]

doesn’t work that way.” A few days later, OFW, alone, filed what it entitled a

“Revised Answer,” though it was OFW’s first responsive pleading, which still did

not raise laches, statute of limitations, or any other affirmative defense.

The following month Ms. Oji and OFW together filed a motion to dismiss,

arguing for the first time that the District’s suit was time barred by a six-year statute

of limitations and laches. The Superior Court (Hon. Hiram E. Puig-Lugo) denied

the motion, ruling that it was untimely under Super. Ct. Civ. R. 12(b), which requires

that a motion to dismiss be filed before an answer. The court also “note[d] that

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