Latest 5 Cases This Week: Empire Health Foundation v. Azar (9th Cir.), Swain v. Junior (11th Cir.), Graff v. Children’s Care Hospital & School ...

Department of Justice Once Again Proves Its Loyalty to the President, Not the Rule of Law

AUSTIN SARAT

Austin Sarat—Associate Provost, Associate Dean of the Faculty, and William Nelson Cromwell Professor of Jurisprudence and Political Science at Amherst College—comments on the recent news that the Justice Department will seek dismissal of charges against Michael Flynn. Sarat suggests that because the decision does not seem to advance the fair administration of justice in this case, the court should take the unusual step of refusing to grant the prosecutor’s motion to dismiss.

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Empire Health Foundation v. Azar

Court: US Court of Appeals for the Ninth Circuit

Dockets: 18-35845, 18-35872

Opinion Date: May 5, 2020

Judge: Milan D. Smith

Areas of Law: Government & Administrative Law, Health Law

Empire challenged HHS's 2005 Rule interpreting a Medicare regulation under the Administrative Procedure Act (APA), as part of its appeal of HHS's calculation of its 2008 reimbursement. The 2005 Rule removed the word "covered" from 42 C.F.R. 412.106(b)(2)(i), effectively amending HHS's interpretation of "entitled to [Medicare]" in 42 U.S.C. 1395ww(d)(5)(F)(vi), a subsection of the Medicare Act, 42 U.S.C. 1395 et seq. The district court granted partial summary judgment for Empire, ruling that, while the 2005 Rule was substantively valid, it should be vacated because the rulemaking process leading to its adoption failed to meet the APA’s procedural requirements. The Ninth Circuit affirmed the district court's grant of summary judgment and vacatur of the 2005 Rule on different grounds. The panel held that the 2005 Rule's rulemaking process, while not perfect, satisfied the APA's notice-and-comment requirements. However, the panel held that the 2005 Rule is substantively invalid and must be vacated, because it directly conflicts with the panel's interpretation of 42 U.S.C. 1395ww(d)(5)(F)(vi) in Legacy Emanuel Hospital and Health Center v. Shalala, 97 F.3d 1261, 1265–66 (9th Cir. 1996). Legacy Emanuel interpreted the meaning of "entitled to [Medicare]" as unambiguous and thus the 2005 Rule's conflicting construction cannot stand. The panel remanded for further proceedings.

Swain v. Junior

Court: US Court of Appeals for the Eleventh Circuit

Docket: 20-11622

Opinion Date: May 5, 2020

Judge: Per Curiam

Areas of Law: Civil Rights, Constitutional Law, Health Law

The Eleventh Circuit stayed an injunction that was issued by the district court against the County and the Director of the Miami-Dade Corrections and Rehabilitations Department (MDCR), requiring defendants to employ numerous safety measures to prevent the spread of COVID-19 and imposing extensive reporting requirements. Metro West inmates had filed a class action challenging the conditions of their confinement under 42 U.S.C. 1983 and seeking habeas relief under 28 U.S.C. 2241 for the named plaintiffs with a "medically vulnerable" subclass of inmates. The court held that defendants established that they are likely to prevail on appeal. In this case, the district court likely committed errors of law in granting the preliminary injunction when it incorrectly collapsed the subjective and objective components of the deliberate indifference inquiry. Defendants are also likely to succeed on appeal because plaintiffs offered little evidence to suggest that defendants were deliberately indifferent. Furthermore, defendants have shown that they will be irreparably injured absent a stay where defendants will lose the discretion vested in them under state law to allocate scarce resources among different county operations necessary to fight the pandemic. Finally, the balance of the harms and the public interest weigh in favor of the stay. Because defendants have satisfied all four Nken factors for a stay, the court granted the stay pending appeal and motion to expedite the appeal.

Graff v. Children’s Care Hospital & School

Court: South Dakota Supreme Court

Citation: 2020 S.D. 26

Opinion Date: May 6, 2020

Judge: Salter

Areas of Law: Health Law

The Supreme Court affirmed the judgment of the circuit court in favor of Children's Care Hospital and School (CCHS) as to Benjamin Graff's complaint alleging that CCHS was negligent and inflicted emotional distress by using physical restraints on him when he received services at CCHS, holding that the circuit court did not err in excluding various Department of Health surveys and by taxing partial disbursements against Graff's parents. Graff, who was in the moderately to severely impaired range of intellectual ability, was receiving services through CCHS when, as a teenager, he began acting out aggressively. CCHS employees used physical restraints on him. Through his parents acting as guardians ad litem, Graff commenced this action alleging, among other things, that CCHS was negligent in its use of physical restraints on him. A jury returned a verdict in favor of CCHS on all of Graff's claims. The circuit court taxed partial disbursements against Graff's parents. The Supreme Court affirmed, holding (1) the circuit court's exclusion of the Department of Health surveys did not prejudice Graff; and (2) the circuit court did not abuse its discretion when it apportioned disbursements against Graff's parents.

Franks v. Sykes

Court: Tennessee Supreme Court

Docket: W2018-00654-SC-R11-CV

Opinion Date: May 1, 2020

Judge: Lee

Areas of Law: Consumer Law, Health Law

The Supreme Court held that the Tennessee Consumer Protection Act of 1977, Tenn. Code Ann. 47-18-101 to -132, applies to health care providers when they are acting in their business capacities and that Plaintiffs, who were consumers of medical services, may state a claim under the Act against the hospitals for conduct arising out of the hospitals' business practices. Plaintiffs received hospital medical services for injuries received in car accidents. The hospitals did not bill Plaintiffs' health insurance companies but, rather, filed hospital liens against Plaintiffs' claims for damages arising from the accidents. The liens were for the entire amount of the hospital bills and were not reduced for Plaintiffs' health insurance benefits. Plaintiffs brought this lawsuit, alleging that the filing of the discounted hospital liens was unlawful under the Act. The trial court dismissed the case for failure to state a cause of action. The court of appeals affirmed, concluding that the underlying transaction did not fit within the Act's definition of a "consumer transaction" as defined by the Act. The Supreme Court reversed, holding that Plaintiffs stated a cause of action under the Act.

Life Care Center of Casper v. Barrett

Court: Wyoming Supreme Court

Citation: 2020 WY 57

Opinion Date: May 5, 2020

Judge: Michael K. Davis

Areas of Law: Health Law, Personal Injury

The Supreme Court vacated the order of the district court holding Life Care Center of Casper in contempt when it failed to comply with an order compelling it to respond to a subpoena served on it in an action for appointment of a wrongful death representative, holding that the district court lacked jurisdiction to compel pre-suit discovery in the appointment proceeding. Plaintiff, the granddaughter of Betty June Cochran, filed a petition to be appointed Cochran's wrongful death representative after Cochran died allegedly after a fall at Life Care Center of Casper. The district court granted the petition. Thereafter, Plaintiff served life Care with a subpoena to compel discovery. Life Care provided only some of the subpoenaed documents. Plaintiff filed a motion to compel, and the district court granted the motion in part. Life Care filed a Wyo. R. Crim. P. 60(b)(6) motion requesting that the district court vacate its order compelling discovery. The district court denied the motion and found Life Care to be in civil contempt. The Supreme Court vacated the order, holding that the district court did not have jurisdiction under Wyo. Stat. Ann. 1-38-103 to compel pre-suit discovery because the sole purpose of a proceeding under section 1-38-103(b) is the appointment of a wrongful death representative.