State of Missouri, Ex Rel. Jeremiah W. ("Jay") Nixon, Attorney General of Missouri v. Prudential Health Care Plan, Inc., Community Plan

259 F.3d 949, 2001 U.S. App. LEXIS 17668, 2001 WL 884096
CourtCourt of Appeals for the Eighth Circuit
DecidedAugust 8, 2001
Docket00-2968
StatusPublished
Cited by98 cases

This text of 259 F.3d 949 (State of Missouri, Ex Rel. Jeremiah W. ("Jay") Nixon, Attorney General of Missouri v. Prudential Health Care Plan, Inc., Community Plan) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State of Missouri, Ex Rel. Jeremiah W. ("Jay") Nixon, Attorney General of Missouri v. Prudential Health Care Plan, Inc., Community Plan, 259 F.3d 949, 2001 U.S. App. LEXIS 17668, 2001 WL 884096 (8th Cir. 2001).

Opinions

BYE, Circuit Judge.

The State of Missouri filed two actions against Prudential Health Care Plan, Inc., pertaining to a single contract dispute. The State appeals the district court’s2 ruling dismissing the first of those actions because of a defective complaint, Fed. R.Civ.P. 12(b)(6). We dismiss the State’s appeal for two reasons. First, the State’s appeal is wholly duplicative of its pending second action. The federal courts strongly oppose such duplication for it promotes [951]*951wasteful use of scarce judicial resources. Second, the State seeks review of an isolated question whose disposition would not impact the ultimate resolution of this action. The State challenges an interlocutory ruling denying remand to state court, but not the Rule 12(b)(6) dismissal which terminated the action in Prudential’s favor. As we explain below, we decline to exercise our jurisdiction to review the State’s appeal.

I

The Missouri Department of Social Services contracts with health maintenance organizations (HMOs) to provide health insurance to qualified Medicaid recipients. In June 1997, Prudential, an HMO, contracted with the State to provide Medicaid coverage. Federal law requires Medicaid providers to screen a percentage of young children for lead poisoning at regular intervals, so the parties incorporated federal lead-testing regulations as terms in Prudential’s contract along with various other federal requirements.

Some time after Prudential began providing Medicaid services under the contract, the Missouri Patient Care Review Foundation audited Prudential’s compliance with federal law. The Foundation’s review allegedly revealed that Prudential was failing to provide adequate lead poisoning testing for enrolled children. It concluded that Prudential had failed to test the proper percentage of infants for lead poisoning as required by its contract with the State.

On November 30, 1999, the State sued Prudential in state court for violating its obligation to test infants for lead poisoning at the rates prescribed by the contract. The State’s complaint stated two separate breach of contract claims as well as a fraud claim.

Prudential promptly removed the action to federal district court. The State then moved to remand the action to state court. The State argued that removal had been improper because its complaint raised no issues of federal law and the parties were non-diverse. The State acknowledged that the parties’ contract incorporated federal law in its express terms. But the State argued that the language of federal law was part and parcel of the contract, and therefore subject only to state-law contractual interpretation doctrines. Prudential opposed remand on the ground that the State’s complaint implicated a federal question. According to Prudential, the district court would necessarily resort to interpreting federal regulations to assess whether the contract’s terms had been breached. The district court ultimately agreed with Prudential and denied the State’s motion to remand.

Prudential then moved to dismiss the State’s complaint under Fed.R.Civ.P. 12(b)(6) for failure to state cognizable claims. The district court granted the motion on June 28, 2000. The court held that the State’s contract claims were pleaded insufficiently because the State had failed to allege, as a condition precedent required by the parties’ contract, that it had notified Prudential of its breach before filing suit. The court also dismissed the fraud claim because the State had not pleaded the facts substantiating fraud with the particularity demanded by Fed.R.Civ.P. 9(b). The court dismissed the State’s complaint without prejudice, but did not enter a judgment in accord with Fed.R.Civ.P. 58.

The State immediately appealed from the district court’s order dismissing its complaint. The State did not challenge the court’s basis for dismissal' — the pleading defects identified in the court’s order. The State challenged only the district court’s refusal to remand its action to state court.

[952]*952In addition to filing an appeal, the State formally notified Prudential of its purported breach of contract, as suggested by the district court’s dismissal order. The State then filed a new action, with a new complaint, in state court on July 26, 2000. The new complaint ameliorated the apparent defects in the initial complaint. And then history repeated itself. Prudential removed the second action to federal district court, where the matter is stayed awaiting our decision in the appeal from the first action. Both the State and Prudential have described the second action as “substantially identical” to the first action.

II

A party may generally appeal from an adverse final decision of a district court. 28 U.S.C. § 1291. We have consistently held that a district court’s dismissal without prejudice is one such “final decision.” See, e.g., Kolocotronis v. Holcomb, 925 F.2d 278, 280 (8th Cir.1991); Tatum v. State of Iowa, 822 F.2d 808, 809 (8th Cir.1987) (per curiam). In addition, we have held that an order dismissing a complaint without leave to amend is presumptively final. Quartana v. Utterback, 789 F.2d 1297, 1299-1800 (8th Cir.1986). The district court’s June 28, 2000 order dismissed the State’s first action without prejudice, and without leave to amend. Thus, under our settled precedent, the district court’s order formed a proper basis for the State’s appeal.

We note in passing that the district court did not issue a separate Rule 58 judgment, yet an appeal may only be taken from a judgment set forth on a separate document. See Fed.R.Civ.P. 58; Fed. R.App. P. 4(a)(1)(A). The defect is not fatal in this case. The Supreme Court has held that an appellant’s failure to obtain a separate judgment from the district court may be waived if the appellee does not object, and if the district court’s order actually disposes of all issues in the action. Bankers Trust Co. v. Mallis, 435 U.S. 381, 387-88, 98 S.Ct. 1117, 55 L.Ed.2d 357 (1978) (per curiam). Prudential has waived any objection to the lack of a Rule 58 judgment, and the district court resolved the entirety of the issues presented for its consideration, so the absence of a Rule 58 judgment does not preclude our consideration of the State’s appeal. See Hall v. Bowen, 830 F.2d 906, 911 n. 7 (8th Cir.1987) (applying Bankers Trust).

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259 F.3d 949, 2001 U.S. App. LEXIS 17668, 2001 WL 884096, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-of-missouri-ex-rel-jeremiah-w-jay-nixon-attorney-general-of-ca8-2001.