Judge: Nathan R. Scott, Case: Zayas v. HCR Manor Care Services, Date: 2022-09-02 Tentative Ruling

Case Management Conference

The CMC is continued to 10/6/22 at 2 pm.

Demurrers x4

Defendants HCR Manor Care Services LLC, Manor Care of Fountain Valley CA LLC, Heartland Employment Services LLC, and Triet Kieu’s demurrers are overruled.

Defendants shall file and serve their answers to the first amended complaint within 10 days.

Amount in controversy.  The court has subject matter jurisdiction over this dispute regardless of the amount in controversy.  (See Long v. Forty Niners Football Co., LLC (2019) 33 Cal.App.5th 550, 556 [“superior courts are courts of general subject matter jurisdiction”]; see also Stratton v. Beck (2017) 9 Cal.App.5th 483, 492 [“[t]he classification of a civil case as limited or unlimited no longer affects the subject matter jurisdiction of the superior court”].)

Failure to exhaust.  Defendants fail to show the complaint “arises under” the Medicare Act. 

The “substantive basis” of the complaint arises from common law breach of contract and fraud, not the Medicare Act.  (Global Rescue Jets, LLC v. Kaiser Foundation Health Plan, Inc. (9th Cir. 2022) 30 F.4th 905, 917.)  Nor have plaintiffs shown plaintiffs’ claims are “inextricable intertwined” with a claim for Medicare benefits.  (Ibid.)  Plaintiffs simply allege defendant breached a settlement agreement by failing to accurately report the settlement to Medicare.  (See FAC ¶¶ 10-14.)

2nd cause of action, fraud.  The FAC states facts sufficient to constitute this cause of action with the requisite specificity.  (See Lazar v. Superior Court (1996) 12 Cal.4th 631, 638, 645 [elements, specificity]; Committee on Children’s Television, Inc. v. General Food Corp. (1983) 35 Cal.3d 194, 217 [defendants know their own knowledge and intent]; see also FAC ¶¶ 10-15, 22-23, 26-33 [promissory fraud].)

Motions to Strike

Defendants’ motions to strike are denied.

The fraud claim sufficiently supports the punitive damages allegations and prayer.  (See Civ. Code, § 3294, subds. (a), (c)(3) [fraud]; Stevens v. Superior Court (1986) 180 Cal.App.3d 605, 610.)

Defendants shall give notice.