Rehoboth McKinley Christian Healthcare Servs., Inc. v. U.S. of Am. Dep't of Health & Human Servs.

• Decision Date: 28 March 2012
• Docket Number: Civ. No. 10–0170 MV/RHS.
• Citation: 853 F.Supp.2d 1107
• Parties: REHOBOTH McKINLEY CHRISTIAN HEALTHCARE SERVICES, INC., Plaintiff, v. UNITED STATES OF AMERICA DEPARTMENT OF HEALTH AND HUMAN SERVICES; Presbyterian Medical Services, Inc., d.b.a. Western New Mexico Counseling; Nancy Yates–Eamick, and XYZ Insurance Company, Defendants.
• Court: U.S. District Court — District of New Mexico

853 F.Supp.2d 1107

REHOBOTH McKINLEY CHRISTIAN HEALTHCARE SERVICES, INC., Plaintiff,

v.UNITED STATES OF AMERICA DEPARTMENT OF HEALTH AND HUMAN SERVICES; Presbyterian Medical Services, Inc., d.b.a. Western New Mexico Counseling; Nancy Yates–Eamick, and XYZ Insurance Company, Defendants.

Civ. No. 10–0170 MV/RHS.

United States District Court,

D. New Mexico.

March 28, 2012.

Debra J. Moulton, Kennedy, Moulton & Wells PC, Albuquerque, NM, for Plaintiff.

Jan Elizabeth Mitchell, United States Attorneys Office, Albuquerque, NM, for Defendants.

MEMORANDUM OPINION AND ORDER

MARTHA VÁZQUEZ, District Judge.

THIS MATTER comes before the Court on Defendants' Motion to Dismiss Pursuant to Fed.R.Civ.P. 12(b)(1) and/or 12(b)(6) or, in the Alternative, Motion for Summary Judgment Pursuant to Fed.R.Civ.P. 56(b) and Supporting Memorandum of Law [Doc. 27]. The Court, having considered the motion, briefs, relevant law and being otherwise fully informed, finds that the Motion is well-taken and will be GRANTED.

BACKGROUND

On July 24, 2005, Keith Likhite, who had previously been diagnosed with schizophrenia and Tourette's Syndrome, was on a bus on his way from California to New York. Doc. 1 at ¶ 10. When the bus reached Gallup, New Mexico, Likhite left the bus and called 911 for help. Id. A Gallup Police Department officer was dispatched to the bus station, and transported Likhite to the emergency room (“ER”) at Rehoboth McKinley Christian Hospital (“Rehoboth”). Id. At Rehoboth, a nurse and ER physician saw Likhite. The ER physician determined that Likhite should have a mental health evaluation. Id.

At the time, Nancy Yates–Eamick was the on-call clinical counselor at the ER. Id. at ¶ 11. Yates–Eamick was an employee of Presbyterian Medical Services, Inc., d/b/a Western New Mexico Counseling (“Presbyterian”). Id. at ¶ 4. Presbyterian and Rehoboth had a “memorandum of understanding” pursuant to which Presbyterian employees, including Yates–Eamick, provided mental and behavioral health services at the Rehoboth ER. Id. at ¶ 9. Presbyterian, in turn, was a federally funded community health care organization under the auspices of the Health Resources and Services Administration, a division of the United States Department of Health and Human Services (“HHS”). Id. at ¶ 43.

Yates–Eamick interviewed Likhite. Based on her professional advice and recommendations, Likhite was discharged and transported back to the bus station at 3:15 a.m. Id. at ¶ 11. Later that morning, at approximately 9:00 a.m., Likhite lay down on the railroad tracks in front of an oncoming freight train, was struck by the train, and died from his injuries. Id.

On March 24, 2006, Likhite's estate filed an action against Rehoboth in the United States District Court for the District of New Mexico (“Likhite Action”), alleging that it was professionally negligent to permit Likhite to depart the ER without mental health treatment. Id. at ¶ 12. The complaint in the Likhite Action alleged, inter alia, that Rehoboth was vicariously liable for Yates–Eamick's actions or failure to act. Id. at ¶ 13. Neither Yates–Eamick, Presbyterian, nor the United States was named as a defendant in the Likhite Action.

On July 28, 2006, Rehoboth sent a letter to Presbyterian, putting Presbyterian on notice that Rehoboth “does assert its legal rights for indemnity in the event that it is held legally liable for the conduct” of Yates–Eamick or Presbyterian. Doc. 1–5. Presbyterian did not respond to the letter. Doc. 1 at ¶ 14. At no time did Presbyterian offer “to appear, defend, ... [or] contribute to” a settlement between the Likhite estate and Rehoboth. Id. at ¶ 17.

The Court in the Likhite Action found as a matter of law that Yates–Eamick was acting as Rehoboth's agent under the doctrine of apparent authority. Likhite v. Rehoboth, No. Civ. 06–227 (LCS/KBM), Memorandum Opinion and Order filed November 9, 2006 (Doc. 45). The Court, however, ultimately made no findings as to liability, as the parties settled the case, memorializing their agreement in a Settlement and Release of Liability, dated February 8, 2007. Doc. 1 at ¶¶ 18, 20. Rehoboth agreed to the settlement “to protect itself from the uncertainties of a jury trial and from exposure to a potential verdict in excess of the estate's final offer.” Id. at ¶ 18.

On July 2, 2007, Rehoboth filed a Tort Claim Notice with HHS, seeking reimbursement for the amounts incurred in litigating and settling the Likhite Action. Id. at ¶ 21. HHS sent Rehoboth a letter dated September 15, 2009, denying the claim. Id. at ¶ 22. On March 12, 2009, Rehoboth filed a request for reconsideration. Id. at ¶ 23.

On February 25, 2010, Rehoboth filed the instant action for damages, naming as defendants HSS, Presbyterian, Yates–Eamick, and XYZ Insurance Company. Doc. 1. Rehoboth's Complaint alleges four counts of indemnity: statutory indemnity (Count I), common law indemnity (Count II), active/passive indemnity (Count III), and proportional indemnification (Count V). Id. at ¶¶ 25–33, 40–41. Additionally, the Complaint alleges one count of “restatement of restitution and unjust enrichment” (Count IV), and one count of “Federally Supported Health Centers Assistance Act (“FSHCAA”), 42 U.S.C. § 233” (Count VI). Id. at ¶¶ 34–39, 42–46. Rehoboth seeks reimbursement from Defendants for all defense and settlement costs incurred in the Likhite Action, plus interest and the costs of pursuing the instant action. Id. at 10.

On July 5, 2011, Defendants filed their motion to dismiss the Complaint pursuant to Rules 12(b)(1) and (6) of the Federal Rules of Civil Procedure, on the grounds of lack of subject matter jurisdiction and failure to state a claim upon which relief can be granted, or in the alternative, for summary judgment pursuant to Rule 56(b). Doc. 27. Plaintiff filed its response in opposition on July 19, 2011. Doc. 31. Defendants filed a reply on August 22, 2011. Doc. 42. As set forth herein, the Court finds that it lacks subject matter jurisdiction over this action, and that, even if it had jurisdiction, dismissal would be required because the Complaint fails to state a claim upon which relief can be granted.

DISCUSSION

I. Legal Standard

A. Rule 12(b)(1) Motion to Dismiss for Lack of Subject Matter Jurisdiction

“Federal courts are courts of limited jurisdiction; they are empowered to hear only those cases authorized and defined in the Constitution which have been entrusted to them under a jurisdictional grant by Congress.” Henry v. Office of Thrift Supervision, 43 F.3d 507, 511 (10th Cir.1994) (citations omitted). Plaintiff bears the burden of establishing this Court's jurisdiction over its claims. Steel Co. v. Citizens for a Better Env't, 523 U.S. 83, 104, 118 S.Ct. 1003, 140 L.Ed.2d 210 (1998). Before considering the merits of a case, the Court is responsible for ensuring that it has subject matter jurisdiction. Daigle v. Shell Oil Co., 972 F.2d 1527, 1539 (10th Cir.1992).

Under Rule 12(b)(1), a party may assert by motion the defense of the Court's “lack of subject-matter jurisdiction.” Fed.R.Civ.P. 12(b)(1). Motions to dismiss for lack of subject matter jurisdiction “take one of two forms: (1) a facial attack on the sufficiency of the complaint's allegations as to subject matter jurisdiction; or (2) a challenge to the actual facts upon which the subject matter jurisdiction is based.” Ruiz v. McDonnell, 299 F.3d 1173, 1180 (10th Cir.2002). On a facial attack, the Court considers the complaint's allegations to be true. Id. On the other hand, when the motion challenges the factual basis for an action, the Court “may not presume the truthfulness of the complaint's factual allegations.” Campos v. Las Cruces Nursing Ctr., 828 F.Supp.2d 1256, 1265 (D.N.M.2011) (citation omitted). Rather, the “court has wide discretion to allow affidavits, other documents, and a limited evidentiary hearing to resolve disputed jurisdictional facts under Rule 12(b)(1).” Id. Reference to evidence outside the pleadings does not convert the motion to a summary judgment motion. Id. If, however, the jurisdictional issues are intertwined with the merits of the case, the Court should resolve the motion under Rule 12(b)(6) or Rule 56. Franklin Sav. Corp. v. United States, 180 F.3d 1124, 1129 (10th Cir.1999).

B. Rule 12(b)(6) Motion to Dismiss for Failure to State a Claim

Under Rule 12(b)(6), a Court may dismiss a complaint for “failure to state a claim upon which relief can be granted.” Fed.R.Civ.P. 12(b)(6). “The nature of a Rule 12(b)(6) motion tests the sufficiency of the allegations within the four corners of the complaint.” Mobley v. McCormick, 40 F.3d 337, 340 (10th Cir.1994). When considering a 12(b)(6) motion, the Court must accept as true all well-pled factual allegations in the complaint, view those allegations in the light most favorable to the non-moving party, and draw all reasonable inferences in the plaintiff's favor. Smith v. United States, 561 F.3d 1090, 1097 (10th Cir.2009), cert. denied,––– U.S. ––––, 130 S.Ct. 1142, 175 L.Ed.2d 973 (2010).

“To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009) (citations omitted). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. A complaint “that offers ‘labels and conclusions' or ‘a formulaic recitation of the elements of a cause of action will not do.’ ” Id. (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). Accordingly, while the Court must take all of the factual allegations in the complaint as true, “a plaintiff armed with nothing more than conclusions” cannot survive a motion to dismiss. Iqbal, 129 S.Ct. at 1950.

II. The Instant CaseA. The Court Lacks Subject Matter...