Rotondo et al v. Blue Cross of Idaho

Filing 26

ORDER ADOPTING REPORT AND RECOMMENDATIONS Re: 24 REPORT AND RECOMMENDATIONS granting in part and that this case is stayed pending the outcome of the parallel Iowa State Court Case, T. Zenon Pharmaceuticals, LLC d/b/a Pharmacy Matters et al. v. Wellmark, Inc., et al., in the Iowa district court for Johnson County, Case No. LACV070675. 6 MOTION to Dismiss and in the Alternative Motion to Stay filed by Blue Cross of Idaho,; Request for Judicial Notice (Dkt. 20) is GRANTED. Signed by Judge Edward J. Lodge. (caused to be mailed to non Registered Participants at the addresses listed on the Notice of Electronic Filing (NEF) by (dks)

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF IDAHO

ANTHONY ROTONDO and

)
)
)
)
)
)
)
)
)
)
)
)

ANITA TSCHIDA,
Plaintiffs,
vs.
BLUE CROSS OF IDAHO,
Defendant.

Case 1:11-cv-00493-EJL-CWD
ORDER

On March 2, 2012, United States Chief Magistrate Judge Candy W. Dale issued a Report and
Recommendation, recommending that Defendant’s Motion to Dismiss and in the Alternative Motion
to Stay be granted in part. (Dkt. 24.) Any party may challenge a magistrate judge’s proposed
recommendation by filing written objections within fourteen days after being served with a copy of
the Magistrate Judges’s Report and Recommendation. See 28 U.S.C. § 636(b)(1)(C). The district
court must then “make a de novo determination of those portions of the report or specified proposed
findings or recommendations to which objection is made.” Id. The district court may accept, reject,
or modify in whole or in part, the findings and recommendations made by the Magistrate Judge. Id.;
see also Fed. R. Civ. P. 72(b). No objections to the Report and Recommendation were filed in this
case and the time for doing so has passed. (Dkt. 24.)

DISCUSSION
This action involves the Plaintiffs claims that the Defendant insurer failed to pay for
medications they claim are covered by their insurance policies. (Dkt. 1.) As a result, the
pharmaceutical companies who provided Plaintiffs with their medications have not been paid for
the medicine. Prior to this case being filed, these same pharmaceutical companies filed suit against
ORDER - Page 1

the Defendant’s affiliate company in Iowa State Court for breach of contract on May 1, 2009.1 The
claims in the Iowa state case include the six invoices relating to Plaintiffs’ claims brought in this
action. In addition, the pharmaceutical companies have filed four other cases in various federal
district courts on behalf of it and named individuals for the same nonpayment of claims by
Defendant related to the same medication. Two of those four cases have been stayed similar to the
request made in this case to await the outcome of the Iowa state case.
The Court has reviewed the Report and Recommendation, the parties’ briefing on the
Motion, and the entire record in this matter. Based upon this review, the Court finds the Report and
Recommendation has correctly decided the Motion. Entry of a stay in this case is consistent with
the relevant factors delineated in Colorado River Water Conservation Dist. v. United States, 424
U.S. 800 (1976) and incorporated by Travelers Indem. Co. v. Madonna, 914 F.3d 1364, 1367 (9th
Cir. 1990). Accordingly, the Court will grant the alternative Motion to Stay the case based on the
well-reasoned analysis and discussion contained in the Report and recommendation. (Dkt. 24.)

ORDER
Having conducted a de novo review of the Report and Recommendation, this Court finds that
Chief Magistrate Judge Dale’s Report and Recommendation is well founded in law and consistent
with this Court’s own view of the evidence in the record. Acting on the recommendation of Chief
Magistrate Judge Dale, and this Court being fully advised in the premises, IT IS HEREBY
ORDERED that the Report and Recommendation entered on March 2, 2012, (Dkt. 24), should be,
and is hereby, INCORPORATED by reference and ADOPTED in its entirety.

THEREFORE, IT IS HEREBY ORDERED that Defendants’ Motion to Dismiss and, in
the Alternative Motion to Stay (Dkt. 6) is GRANTED IN PART and that this case be STAYED
pending the outcome of the parallel Iowa State Court Case, T. Zenon Pharmaceuticals, LLC d/b/a
Pharmacy Matters et al. v. Wellmark, Inc., et al., in the Iowa district court for Johnson County, Case
No. LACV070675.
1

The Complaint initiating this action was filed on October 19, 2011. (Dkt. 1.)

ORDER - Page 2

IT IS FURTHER ORDERED that the Clerk of the Court CLOSE this case for
administrative purposes. Plaintiffs may move to reopen this case within thirty (30) days of the
conclusion of the aforementioned Iowa State Court case.

IT IS FURTHER ORDERED that the Request for Judicial Notice (Dkt. 20) is GRANTED.

DATED: May 11, 2012

Honorable Edward J. Lodge
U. S. District Judge

ORDER - Page 3