Surgery Center LLC NOLA v. Louisiana Health Service & Indemnity Company d/b/a Blue Cross/Blue Shield of Louisiana, Blue Cross & Blue Shield of Louisiana, Inc., and HMO Louisiana, Inc.

CourtDistrict Court, E.D. Louisiana
DecidedMarch 31, 2026
Docket2:25-cv-01084
StatusUnknown

This text of Surgery Center LLC NOLA v. Louisiana Health Service & Indemnity Company d/b/a Blue Cross/Blue Shield of Louisiana, Blue Cross & Blue Shield of Louisiana, Inc., and HMO Louisiana, Inc. (Surgery Center LLC NOLA v. Louisiana Health Service & Indemnity Company d/b/a Blue Cross/Blue Shield of Louisiana, Blue Cross & Blue Shield of Louisiana, Inc., and HMO Louisiana, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Surgery Center LLC NOLA v. Louisiana Health Service & Indemnity Company d/b/a Blue Cross/Blue Shield of Louisiana, Blue Cross & Blue Shield of Louisiana, Inc., and HMO Louisiana, Inc., (E.D. La. 2026).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

SURGERY CENTER LLC NOLA CIVIL ACTION VERSUS NO: 25-1084 LOUISIANA HEALTH SERVICE & SECTION: T (2) INDEMNITY COMPANY D/B/A BLUE CROSS/BLUE SHIELD OF LOUISIANA, BLUE CROSS & BLUE SHIELD OF LOUISIANA, INC., and HMO LOUISIANA, INC. ORDER AND REASONS Before the Court is Plaintiff’s Motion to Remand (R. Doc. 9). Having reviewed the record, the briefs, and the applicable law, the Court will DENY Plaintiff’s Motion for the following reasons. I.BACKGROUND This case concerns a fee dispute between Plaintiff, Surgery Center LLC NOLA, and three health-insurance-entity defendants: (1) Louisiana Health Service & Indemnity Company d/b/a Blue Cross/Blue Shield (“LHSI”), (2) Blue Cross & Blue Shield of Louisiana, Inc. (“BCBSLA”), and (3) HMO Louisiana, Inc. (“HMO”) (collectively, “Defendants”). R. Doc. 1-1, pp. 1-11. Plaintiff seeks to recover payments from Defendants for medical services provided to patients insured by Defendants based on alleged wrongful conduct by Defendants that induced Plaintiff to render treatment to Defendants’ insureds. R. Doc. 9-1, p. 3. Specifically, Plaintiff provided medical care to “customers/insureds of BCBSLA” for several years. R. Doc. 10, p. 9 (citing R. Doc. 1-1, p. 2). As a provider outside of BCBSLA’s network, Plaintiff would contact BCBSLA “to verify that services are authorized to be performed on an out-of-network basis under the applicable plan or policy. R. Doc. 10, p. 9 (citing R. Doc. 1- 1, pp. 2-3). After verification, Plaintiff would provide the approved care and submit a bill to

BCBSLA for payment of services. R. Doc. 10, p. 9 (citing R. Doc. 1-1, p. 3). While Plaintiff seeks the full amount due for each of these bills, R. Doc. 1-1, pp. 3-4, BCBSLA contends that it only owes “the allowable reimbursement under the plan or policy of the ‘customer/insured’ of BCBSLA,” R. Doc. 10, pp. 9-10. Plaintiff filed its original state-court Petition against Defendants in the 24th Judicial District Court for the Parish of Jefferson on April 7, 2025, advancing legal theories of breach of contract, detrimental reliance, fraud, and negligent misrepresentation. R. Doc. 1-1, p. 1. Defendants removed the action to this Court on May 30, 2025, citing the following bases for removal: (1) the Federal Officer Removal Statute, 28 U.S.C. § 1442(a)(1), because Plaintiff’s claims involve BCBSLA’s administration of plans governed by the Federal Employees Health Benefits Act

(“FEHBA”), 5 U.S.C. § 8901 et seq., and subject to directives from the United States Office of Personnel Management (“OPM”), and (2) federal question subject matter jurisdiction pursuant to 28 U.S.C. § 1331 because the controversy arises under both the FEHBA and the Employee Retirement Income Security Act of 1974 (“ERISA”). R. Doc. 1, pp. 1-2. Plaintiff subsequently filed the instant Motion to Remand to State Court, arguing that (1) the Federal Officer Removal Statute does not apply and (2) this Court is without federal-question jurisdiction. R. Doc. 9-1, p. 2. Specifically, Plaintiff contends that rather than claiming coverage benefits on behalf of its patients or seeking to enforce any federal right, it seeks enforcement of legal rights that it independently holds against defendants. Id. Plaintiff additionally requests an award of just costs, actual expenses, and attorney’s fees under 28 U.S.C. § 1447(c). Id. at pp. 14- 15. Defendants filed a response memorandum in opposition to the Motion. R. Doc. 10. Thereafter, Plaintiff filed its reply in support, R. Doc. 18, and Defendants filed a sur-reply, R. Doc. 21, after seeking leave of court to do so, R. Docs. 19, 20. The matter is now submitted to the Court.

II. LAW AND ANALYSIS Federal courts are courts of limited jurisdiction, possessing “only that power authorized by Constitution and statute, which is not to be expanded by judicial decree.” Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 377 (1994) (citations omitted). While federal courts typically “must presume that a suit lies outside this limited jurisdiction, and the burden of establishing federal jurisdiction rests on the party seeking the federal forum[,]” they must resolve factual disputes in favor of retaining federal jurisdiction when evaluating removal under the federal officer removal statute. Howery v. Allstate Ins. Co., 243 F.3d 912, 916 (5th Cir. 2001); Ragusa v. Louisiana Ins. Guaranty Ass’n, 573 F. Supp. 3d 1046, 1051 (E.D. La. Nov. 23, 2021) (citing Schnexnayder v. Huntington Ingalls, Inc., No. 20-775, 2020 WL 3970159, at * 3 (E.D. La. July

14, 2020) (Milazzo, J.); Louisiana v. Sparks, 978 F.2d 226, 232 (5th Cir. 1992)). 28 U.S.C. § 1442(a)(1), the federal officer removal statute, authorizes removal of a civil action commenced in a state court against or directed to “[t]he United States or any agency thereof or any officer (or any person acting under that officer) of the United States or of any agency thereof, in an official or individual capacity, for or relating to any act under color of such office.” In the words of the Fifth Circuit, the statute “allows federal officers, and private entities assisting them, to remove cases to federal court that ordinarily would not be removable.” Martin v. LCMC Health Holdings, Inc., 101 F.4th 410, 414 (5th Cir. 2024) (citing Latiolais v. Huntington Ingalls, Inc., 951 F.3d 286, 291 (5th Cir. 2020) (en banc)). Unlike the general removal statute, the federal officer removal statute includes cases “that ordinary federal question removal would not reach[.]” Latiolais, 951 F.3d at 290. “Even in situations where the parties are not diverse and no federal question is raised in the complaint, § 1442 allows a case to be removed if the federal actor asserts a federal defense.” Martin, 101 F.4th at 414 (citing Latiolais, 951 F.3d at 296). To establish

jurisdiction under the statute, a defendant must show: (1) it has asserted a colorable defense, (2) it is a ‘person’ within the meaning of the statute, (3) it has acted pursuant to a federal officer’s directions, and (4) the charged conduct is connected or associated with an act pursuant to a federal officer’s directions. Latiolais, 951 F.3d at 296 (citing Winters v. Diamond Shamrock Chem. Co., 149 F.3d 387, 396-400 (5th Cir. 1998)). While “[t]he absence of any element will defeat removal, Martin, 101 F.4th at 414, “the federal officer removal statute is to be broadly construed in favor of a federal forum,” Williams v. Lockheed Martin Corp., 990 F.3d 852, 859 (5th Cir. 2021); see also Latiolais, 951 F.3d at 290 (noting that the question whether to remand cases removed under the statute is weighed “without a thumb on the remand side of the scale.”). Here, the Court finds that Defendants are entitled to removal under the federal officer

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Surgery Center LLC NOLA v. Louisiana Health Service & Indemnity Company d/b/a Blue Cross/Blue Shield of Louisiana, Blue Cross & Blue Shield of Louisiana, Inc., and HMO Louisiana, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/surgery-center-llc-nola-v-louisiana-health-service-indemnity-company-laed-2026.