Total Benefits Planning Agency Inc. v. Anthem Blue Cross & Blue Shield

630 F. Supp. 2d 842, 2007 U.S. Dist. LEXIS 53862, 2007 WL 2156657
CourtDistrict Court, S.D. Ohio
DecidedJuly 25, 2007
Docket1:05cv519
StatusPublished
Cited by7 cases

This text of 630 F. Supp. 2d 842 (Total Benefits Planning Agency Inc. v. Anthem Blue Cross & Blue Shield) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Total Benefits Planning Agency Inc. v. Anthem Blue Cross & Blue Shield, 630 F. Supp. 2d 842, 2007 U.S. Dist. LEXIS 53862, 2007 WL 2156657 (S.D. Ohio 2007).

Opinion

OPINION AND ORDER

MICHAEL R. BARRETT, District Judge.

This matter is before the Court upon Anthem Blue Cross and Blue Shield, Anthem Life Insurance Company Inc., Anthem Health Plans of Kentucky Inc., Anthem Insurance Company Inc.’s (“Anthem Defendants”) Motion for Reconsideration (Doc. 29) and Cornerstone Broker Insurance Services Agency Inc.’s (“Cornerstone”) Motion for Reconsideration, or Mo *846 tion to Certify Interlocutory Appeal (Doc. 30).

Subsequent to the filing of these motions, Plaintiffs filed an Amended Complaint as a matter of right. The Anthem Defendants and Cornerstone filed additional Motions to Dismiss (Does. 43, 44), essentially repeating the same arguments made in the Motions for Reconsideration. The new Defendants named in the Amended Complaint also filed Motions to Dismiss Plaintiffs’ Amended Complaint. (Docs. 73, 74, 77, 78, 79, 80, 84) For the most part, these Motions are identical and repeat the same arguments made by the Anthem Defendants and Cornerstone.

Also pending before the Court are the Anthem Defendants’ Motion to Quash and to Stay Discovery (Doc. 23); the City of Dayton’s Motion to Quash (Doc. 25); and Plaintiff Thomas Quigley’s Motion to Disqualify Counsel (Doc. 89).

I. FACTUAL AND PROCEDURAL BACKGROUND

Plaintiffs allege violations of the Sherman Antitrust Act, 15 U.S.C. § 1 and the Clayton Act, 15 U.S.C. § 15. 1 Plaintiffs also allege violations of state law for defamation, tortuous interference, civil conspiracy, and breach of contract.

In their Amended Complaint, Plaintiffs allege that they are in the business of selling health and life insurance to individuals and businesses. (Doc. 40, ¶ 20) Total Benefits Planning Agency developed a strategy for controlling healthcare costs, which it calls the Total Benefits Strategy. {Id. ¶ 22) The Strategy uses “a 51-year old federal tax law to ‘refinance’ healthcare costs by raising deductibles on existing group insurance policies and administering benefits through a medical expense reimbursement plan.” {Id.)

The Anthem Defendants are insurance companies. {Id. ¶ 5) Until June 3, 2005, Plaintiffs maintained appointments with the Anthem Defendants to sell life and health insurance. {Id. ¶ 21)

Plaintiffs allege that during a meeting in September of 2004, a representative of the Anthem Defendants informed Plaintiffs that the Anthem Defendants had concerns that the Total Benefits Strategy was not in the best interests of the Anthem Defendants or insurance agencies such as Defendants Cornerstone, CAI Insurance Agency, Horan Associates, Inc., USI Midwest, McGohan-Brabender, Inc., Brower Insurance Agency, LLC, Lang Financial Group, Benefit Resources, Inc. and John/Jane Doe 1-100. (Id. ¶ 24) Plaintiffs allege that the Anthem Defendants and these agencies had “an agreement and common understanding in regards to the amount of commissions to be paid in connection with the [sale] of Health Insurance, including but not limited to Group Health Insurance, and the price to be charged to the consumer.” (I d.) Plaintiffs allege that the Anthem Defendants and the agencies “believed that the Total Benefits Strategy threatened said fixed prices and commission as it provided a lower cost alternative to the consumer ...” (Id.) Plaintiffs allege that the Anthem Defendants threatened to terminate Plaintiffs’ appointments if Plaintiffs continued to use the Total Benefits Strategy. (Id.) However, Plaintiffs continued to promote the Total Benefits Strategy. ( Id.)

Plaintiffs allege that Defendants have taken several actions which make up a continuing agreement, understanding, and *847 concert of action. (Id. ¶ 26) Plaintiffs allege that Defendants and their co-conspirators defamed and libeled Plaintiffs to third parties, such as insurance agencies, agents, businesses and consumers. (Id.) Plaintiffs allege that Defendants and their co-conspirators stated that the Total Benefits Strategy is unethical and illegal even though Defendants and their co-conspirators knew this to be untrue. (Id.) Plaintiffs allege further that Defendants and their co-conspirators have “coerced and threatened certain insurance agents by threatening to ‘blacklist’ them and cancel their contracts to insure that these agents do not do business with Plaintiffs.” (Id.) Plaintiffs allege that they have also been coerced and threatened. (Id.) Plaintiffs state that Defendants have “ ‘blacklisted’ Plaintiffs within the insurance industry and otherwise organized a boycott of Plaintiffs.” (Id.) Finally, Plaintiffs state that Defendants terminated their appointments and threatened to terminate the appointment of any agent who does business with Plaintiffs. (Id.) Plaintiffs allege that as a direct and proximate result of these actions, purchasers of insurance services from Plaintiffs have been deprived of the benefits of free and open competition; Plaintiffs have been restrained in their ability to make these services readily and fully available; and Plaintiffs have been defamed and libeled. (Id. ¶ 28)

This Court previously ruled that the per se rule was applicable to Plaintiffs’ antitrust claim under the Sherman Act, and Plaintiffs had adequately plead an antitrust claim under that rule. (Doc. 27) The Court also found that Plaintiffs’ antitrust claim was not exempted by the McCarranFerguson Act. The Anthem Defendants and Cornerstone seek reconsideration • of the Court’s ruling regarding the applicability of the per se rule. In their Motions to Dismiss, all of the Defendants argue that Plaintiffs’ antitrust claim under the Sherman Act, 15 U.S.C. § 1, should be dismissed because Plaintiffs have not satisfied the pleading requirements for an antitrust claim.

II. ANALYSIS

A. Motion for Reconsideration

Although a motion for reconsideration is not mentioned in the Federal Rules of Civil Procedure, it is often treated as a motion to amend judgment under Rule 59(e). McDowell v. Dynamics Corp. of America, 931 F.2d 380 (6th Cir.1991); Shivers v. Grubbs, 747 F.Supp. 434 (S.D.Ohio 1990). The grant or denial of a Rule 59(e) motion is within the informed discretion of the district court, and is reversible only for abuse. Huff v. Metropolitan Life Insurance Co., 675 F.2d 119, 122 (6th Cir.1982).

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Bluebook (online)
630 F. Supp. 2d 842, 2007 U.S. Dist. LEXIS 53862, 2007 WL 2156657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/total-benefits-planning-agency-inc-v-anthem-blue-cross-blue-shield-ohsd-2007.