Steinmeyer v. American Association of Blood Banks

District Court, S.D. California·Decided March 24, 2025·No. 3:23-cv-01160·Unknown

Opinion

RANDALL HENRI STEINMEYER, Case No.: 23-CV-1160 JLS (DTF) an individual, ORDER: Plaintiff, v. (1) GRANTING DEFENDANTS’ MOTIONS TO DISMISS, AND AMERICAN ASSOCIATION OF BLOOD BANKS, MARCIA (2) DENYING PLAINTIFF’S EISENBERG, and DIANE KILLION, SECOND MOTION FOR RULE 11 Defendants. SANCTIONS

(ECF Nos. 46, 53, 61)

Presently before the Court are Defendants American Association of Blood Banks (“AABB”) and Diane Killion’s (collectively, “AABB Defendants”) Motion to Dismiss Second Amended Complaint (“AABB MTD,” ECF No. 53) and Memorandum of Points and Authorities in Support Thereof (“AABB Mem.,” ECF No. 53-1). Plaintiff Randall Steinmeyer filed an Opposition (“AABB Opp’n,” ECF No. 56) to the Motion, and the AABB Defendants filed a Reply (“AABB Reply,” ECF No. 58). Also before the Court are Defendant Marcia Eisenberg’s (“Dr. Eisenberg”) Motion to Dismiss Plaintiff’s Second Amended Complaint (“Eisenberg MTD,” ECF No. 61), to which Plaintiff filed an Opposition (“Eisenberg Opp’n,” ECF No. 63) and Dr. Eisenberg filed a Reply (“Eisenberg Reply,” ECF No. 66), and Plaintiff’s Second Motion for Rule 11 Sanctions (“Sanctions Mot.,” ECF No. 46), to which AABB filed an Opposition (“Sanctions Opp’n,” ECF No. 47) and Plaintiff filed a Reply (“Sanctions Reply,” ECF No. 51). The Court previously took all three Motions under submission without oral argument pursuant to Civil Local Rule 7.1(d)(1). ECF Nos. 50, 57, 65. Having carefully considered the Second Amended Complaint (“SAC,” ECF No. 48), the Parties’ arguments, and the law, the Court (1) GRANTS the AABB Defendants’ Motion to Dismiss, (2) GRANTS Dr. Eisenberg’s Motion to Dismiss, and (3) DENIES Plaintiff’s Second Motion for Rule 11 Sanctions. Plaintiff’s SAC largely duplicates factual allegations already pled twice before, first in Plaintiff’s Complaint (“Compl.,” ECF No. 1), and later in his First Amended Complaint (“FAC,” ECF No. 21). There is, thus, little need for the Court to rehash the factual background of this case as the Parties are well-aware of the nature of Plaintiff’s claims. For the sake of completeness, however, the Court states below the relevant facts and procedural background. AABB, a non-profit organization headquartered in Maryland, “develops and enforces standards for DNA paternity and other relationship testing.” SAC ¶ 14. According to Plaintiff, AABB sets testing standards, which are “mandatory” regulations that independent testing laboratories—like Labcorp and DNA Diagnostics Center (“DDC”)—must follow. Id. ¶ 59. To sum up Plaintiff’s narrative concisely, AABB allegedly took part in a discriminatory, collusive effort with its partner laboratories to rig paternity tests nationwide “in favor of one class of citizen, female, and against another class, male.” Id. ¶ 32. This alleged scheme, according to Plaintiff, had a harmful impact on proceedings related to Plaintiff’s supposed paternity of a child that took place in state court between 2017–2018. As described by the Court in its Order dismissing Plaintiff’s initial Complaint, on “March 24, 2017, a California superior court judge ordered Plaintiff to submit to genetic testing to determine the paternity of the Child. Then, on January 18, 2018, the same court issued a ‘Custody Order’ and ‘Final Judgment’ labeling Plaintiff the ‘presumed father’ of the Child.” ECF No. 20 at 12 (“First MTD Order”) (internal citations omitted). Plaintiff alleges this paternity determination was the specious consequence of a “bait-and-switch scheme” whereby the laboratories from which he sought paternity tests provided what Plaintiff refers to as Mother-not-Tested lookalike tests (“MNT Tests”) rather than true paternity tests. SAC ¶¶ 33, 35–37. True paternity tests, says Plaintiff, include maternal DNA and can determine paternity with certainty, whereas MNT Tests, which are analyzed in the absence of maternal DNA, “cannot make an ‘is’ determination,” and thus cannot be considered true paternity tests. Id. ¶¶ 22, 25, 92. Unwilling to accept the paternity results, Plaintiff undertook significant efforts to investigate the tests’ accuracy. Despite the superior court judge’s final judgment with respect to Plaintiff’s paternity determination being issued in January 2018, Plaintiff alleges he did not “obtain[] his physical MNT result itself for the first time” until January 2019. Id. ¶ 79. Then, over a full year later in March 2020, Plaintiff alleges he inquired as to the validity of his results with the AABB Chairman, who staged a fraudulent investigation that revealed no reason to doubt the paternity results. Id. ¶¶ 84–86. Unsatisfied with the AABB investigation, in July 2022, Plaintiff filed an FDA citizen petition “to ban the MNT and replace Defendant AABB as the regulator.” Id. ¶ 88. Throughout the course of the FDA proceedings, Plaintiff alleges AABB willfully made numerous false statements about the MNT Tests and about Plaintiff himself. See id. ¶¶ 90–101. Later, in August 2024, Plaintiff alleges he “discovered Defendants Eiserberg [sic] and Killion, together with AABB agreed to disguise MNT Tests, including Plaintiff[’]s, as paternity tests and to rig the appearance of evidence in these cases against males and for females.” Id. ¶ 131. Dr. Eisenberg, for context, is Labcorp’s Chief Science Officer, id. ¶ 15, and Killion is AABB’s General Counsel, id. ¶ 16. / / / / / / Unsuccessful in challenging the paternity determination through administrative pathways, Plaintiff took to the federal courts.1 He first sued Labcorp along with several other individuals in this Court in August 2022, but that case was dismissed on June 8, 2023. Steinmeyer v. Lab’y Corp. of Am. Holdings, 676 F. Supp. 3d 851, 856 (S.D. Cal. 2023). Two weeks later, Plaintiff filed the instant suit against AABB, asserting claims for intentional misrepresentation, fraudulent concealment, negligence, violation of California’s False Advertising Law, violation of California’s Unfair Competition Law, and injunctive and declaratory relief. See Compl. ¶¶ 62–95. The Court initially dismissed all of Plaintiff’s claims as collaterally estopped to the extent they sought retrospective relief for money damages arising out of the paternity determination. First MTD Order at 14. Specifically, the Court “accept[ed] . . . the undisputed contention that the Complaint seeks to hold [AABB] accountable for the allegedly erroneous paternity ruling,” and under that premise, it held “that Plaintiff is precluded from basing his claims for monetary damages on the contention that he is not the father of the Child.” Id. at 11, 14. But the Court granted Plaintiff leave to amend his Complaint, leaving open the option of re-raising his tort claims to the extent they sought “damages that are not measured by the money Plaintiff has lost as a result of the state court’s paternity ruling.” Id. at 18 n.12. Plaintiff filed his First Amended Complaint, re-alleging the same claims as before without “alter[ing] them in any way, shape, or form.” ECF No. 45 (“Second MTD Order”) at 8. These claims the Court dismissed with prejudice. Id. But Plaintiff also asserted new claims for unjust enrichment, monopolization, tortious interference with contract, tortious interference with prospective advantage, and public nuisance. FAC ¶¶ 181–267. As the Court held with respect to the initially asserted claims, the new claims for unjust enrichment, tortious interference with contract, and public nuisance were similarly barred by issue preclusion because “[d]espite lengthy allegations of how Defendant interfered 1 Plaintiff, by this time, had already appealed the state court decision to the First Division of California’s with Plaintiff’s ability to obtain a true paternity test, nowhere does the [FAC] allege that said interference caused Plaintiff any injury other than an erroneous paternity determination.” Second MTD Order at 10. The Court also dismissed with prejudice the antitrust claims and the tortious interference with prospective economic adva

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