Reid v. BCBSM, Inc.

111 F. Supp. 3d 966, 2015 U.S. Dist. LEXIS 85832, 2015 WL 3938167
CourtDistrict Court, D. Minnesota
DecidedJune 26, 2015
DocketCiv. No. 12-3005 (RHK/FLN)
StatusPublished

This text of 111 F. Supp. 3d 966 (Reid v. BCBSM, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reid v. BCBSM, Inc., 111 F. Supp. 3d 966, 2015 U.S. Dist. LEXIS 85832, 2015 WL 3938167 (mnd 2015).

Opinion

MEMORANDUM OPINION AND ORDER

RICHARD H. KYLE, District Judge.

This matter is before the Court on remand from the Eighth Circuit, with instructions “that the district court provide [967]*967an explanation for its decision,” specifically, the decision to deny the Motion of Defendants BCBSM, Inc. and Blue Cross and Blue Shield of Minnesota Medical Plan, Group No. 4G175-00 (collectively, “Blue Cross”) to Vacate the Court’s November 21, 2013 Order. In accordance with the Circuit’s mandate, this Memorandum sets forth the Court’s rationale for denying the Motion to Vacate.

By way of background, this case concerned Plaintiffs son M.A.R., who was diagnosed with autism-spectrum disorder in 2008. Plaintiff obtained intensive behavioral therapy to address M.A.R.’s developmental delays and sought coverage for the therapy from Blue Cross, her insurer. Blue Cross initially denied her claim, asserting that M.A.R.’s therapy was not medically necessary, and later amended its policies, including Plaintiffs, to exclude coverage altogether for such therapy. Plaintiff then commenced this action,' alleging inter alia that Blue Cross’s exclusion of coverage for intensive behavioral therapy violated Title III of the Americans with Disabilities Act (ADA); she sought declaratory and injunctive relief, but not damages. Blue Cross moved to dismiss all of Plaintiffs claims, including the ADA claim, under Federal Rule of Procedure 12(b)(6). It extensively briefed the issues and participated (along with its co-Defendants) in a lengthy oral argument before the Court on September 30, 2013.

On November 21, 2013, the Court granted in part and denied in part Blue Cross’s Motion, dismissing all of Plaintiffs claims except her ADA claim (and a parallel claim under the Minnesota Human Rights Act (MHRA)).1 As to that claim, the Court held that Plaintiff had stated a plausible entitlement to relief under the standards articulated in Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007), and Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). Blue Cross sought permission to move for reconsideration (Doc. No. 95), which was denied by Order dated December 18, 2013 (Doc. No. 97).

On February 3, 2014, Blue Cross filed the Motion (Doc. No. 98) “teeing up” the issue now before the Court. In that Motion, Blue Cross noted that Plaintiff had moved to Arizona, had canceled the insurance policy in question, and could no longer purchase insurance from Blue Cross because it is not licensed to do business in Arizona. As Plaintiff sought only declaratory and injunctive relief with regard to insurance coverage she no longer had and could not re-obtain, Blue Cross argued that her case had become moot. Notably, Plaintiff agreed that her case was moot and cross-moved to dismiss. (Doc. Nos. 105-106.)

In addition to seeking dismissal of Plaintiffs claims, Blue Cross also sought vacatur of the Court’s Order granting in part and denying in part Blue Cross’s Motion to Dismiss. It argued that because the case had become moot, it had no effective way to challenge on appeal the Court’s ruling on Plaintiffs ADA claim — a ruling that it contended was erroneous. And because it was Plaintiff who had mooted the case (by moving), it argued that it “ought not in fairness be forced to acquiesce” to that ruling. (Doc. No. 100 at 9-10 (quoting U.S. Bancorp Mortg. Co. v. Bonner Mall P’ship, 513 U.S. 18, 25, 115 S.Ct. 386, 130 L.Ed.2d 233 (1994)).) Plaintiff responded that given the “serious nature of the allegations,”, and for “the benefit of the public,” it was imperative that the Court’s earlier decision stand. (Doc. No. 106 at 2.) [968]*968Even though, as Plaintiff conceded, disposition of a “Motion to Dismiss is not binding precedent to other district court[s],” she argued that “it may be persuasive ... in the future” and should not be “erased from the record.” (Id. at 8.)

By Order dated April 15, 2014, the Court dismissed the action as moot but declined to vacate its earlier decision. (Doc. No. 109.) The Court did not explain in writing its reasons for denying vacatur. Blue Cross appealed, and on May 28, 2015, the Eighth Circuit remanded “with instructions that the district court provide an explanation for its decision.” (Doc. No. 114 at 5.) The Court does so now.

Two key reasons informed the Court’s decision to deny vacatur. First, the crux of Blue Cross’s Motion was that the Court had erred in refusing to dismiss the ADA claim. But the Court had carefully considered Blue Cross’s arguments— which were extensively briefed and addressed at oral argument, and briefed again when Blue Cross sought permission to move for reconsideration — and rejected them. Then, as now, the Court perceived no reason to vacate its decision simply because Blue Cross did not like or agree with it. More importantly, even if Blue Cross’s arguments were sufficiently convincing to cause the Court to second-guess the wisdom of its decision, the Supreme Court has counseled that it is “inappropriate ... to vacate mooted cases ... on the basis of assumptions about the merits.” U.S. Bancorp, 513 U.S. at 27, 115 S.Ct. 386 (rejecting argument that decisions in moot cases “should be vacated as a sort of prophylactic against legal error”). It simply was not proper for the Court to vacate its decision based on a “judicial estimate” of the chance it might be reversed. Id. at 28, 115 S.Ct. 386.

Second, the Court determined Blue Cross’s other concern — the decision’s effect on future cases — was illusory. While not saying so directly, Blue Cross’s request for vacatur made clear its unease with the impact of the Court’s decision. (See Doc. No. 100 at 3-4 (“Given the broad implications of [the decision] for health insurance providers ...”); id. at 10 (same).) It reiterated those concerns more concretely on appeal. (See Brief of Appellant at 5, Reid v. BCBSM, Inc., No. 14-2083, 2014 WL 3421299 (8th Cir. July 1, 2014) (arguing this Court “refused to vacate its potentially significant but highly questionable decision that the ADA prohibits a health insurance policy from providing different benefits for different disabilities”); id. at 6 (“[A]bsent appellate review, the district court’s opinion could seriously impact the health insurance industry in Minnesota; in which Blue Cross is the largest provider.”); id. at 8 (“As long as th[e] decision stands unvacated, other parties can potentially cite it against Blue Cross as stare decisis.”).)

But this argument was, in the Court’s view, simply a red herring; the decision denying dismissal of the ADA claim had little (if any) impact beyond the realm of this case. No other court was bound by the decision, and indeed, even the undersigned could have opted to deviate from it in a future case. See Camreta v. Greene, 563 U.S. 692, 131 S.Ct. 2020, 2033 n. 7, 179 _L.Ed.2d 1118 (2011) (“A decision of a federal district court judge is not binding precedent in either a different judicial district, the same judicial district,, or even upon the same judge in a different case.”) (citation omitted); Se. Stud & Components, Inc. v. Am. Eagle Design Build Studios, LLC, 588 F.3d

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Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
Ron Teague v. Arkansas Board of Education
720 F.3d 973 (Eighth Circuit, 2013)
IBM Credit Corp. v. United Home for Aged Hebrews
848 F. Supp. 495 (S.D. New York, 1994)
District of Columbia Hospital Ass'n v. District of Columbia
73 F. Supp. 2d 8 (District of Columbia, 1999)
Springer v. McLANE COMPANY, INC.
692 F. Supp. 2d 1050 (D. Minnesota, 2010)
United States v. Gurley
43 F.3d 1188 (Eighth Circuit, 1994)
Camreta v. Greene
179 L. Ed. 2d 1118 (Supreme Court, 2011)

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Bluebook (online)
111 F. Supp. 3d 966, 2015 U.S. Dist. LEXIS 85832, 2015 WL 3938167, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reid-v-bcbsm-inc-mnd-2015.