Allstate Insurance Company et al v. Community Health Center, Inc. et al
Filing
96
ORDER & REASONS denying 86 APPEAL OF MAGISTRATE JUDGE DECISION to District Court by Community Health & Rehabilitation Center, Inc., Community Health Center, Inc., Kathy Hampton, Leon Hampton, Mid City Imaging filed by Kathy Hampton, Community Health & Rehabilitation Center, Inc., Mid City Imaging, Leon Hampton, Community Health Center, Inc. Signed by Judge Helen Ginger Berrigan on 5/25/12. (PLH)
UNITED STATES DISTRICT COURT
MIDDLE DISTRICT OF LOUISIANA
ALLSTATE INSURANCE COMPANY,
ET AL
VERSUS
CIVIL ACTION
COMMUNITY HEALTH CENTER, INC.,
ET AL
SECTION ʺCʺ (5)
NO. 08‐810
ORDER AND REASONS
This matter comes before the Court on motion to appeal magistrate’s ruling by
the defendants, Community Health Center, Inc., Community Health & Rehabilitation
Center, Inc., Kathy Hampton, Leon Hampton and Mid City Imaging. Rec. Doc. 15.
Having considered the record, the memoranda of counsel and the law, the Court denies
the motion for the following reasons.
The plaintiffs, Allstate Insurance Company, Allstate Indemnity Company,
Allstate Property & Casualty Company, Allstate Fire and Casualty Insurance Company
and Allstate County Mutual Insurance Company (collectively “Allstate”) have filed a
complaint under diversity jurisdiction alleging fraud and unjust enrichment against the
defendants for their “marketing and solicitation project” involving individuals
allegedly injured in automobile accidents allegedly caused by Allstate insureds and the
defendants’ provision of false medical reports and bills to attorneys and Allstate. Rec.
Doc. 1. The defendants challenge the April 19, 2012, order of Magistrate Judge Chasez
that they produce patients’ charts pursuant to the Health Insurance Portability and
Accountability Act of 1996, 45 C.F.R. § 164.512(e)(1)(I) (“HIPAA”), with redacted patient
names and subject to the use prohibitions and return obligations set forth in the
plaintiffs’ proposed protective order. Rec. Docs. 67‐5, 85.
In this motion, the defendants appeal that order with several arguments. First,
they argue that the approximately 200 charts belong to non‐parties, that plaintiffs can
not explain how this information is essential to their case, and that the information is
sought only to allow plaintiffs’ experts to devise a case for them. Rec. Doc. 86‐2 at 2.
They argue that plaintiffs’ have no cause of action and the charts are not related to this
suit. The defendants argue that HIPAA prohibits disclosure of the information because
“their case has to come under a Federal Question”and the production governed by
stricter Louisiana law requirements and that, in addition, under Fed.R.Evid. 403 , the
“tenuous relevance of such documents is substantially outweighed by the danger of
unfair prejudice as well as jury confusion that will emanate from such.” Rec. Doc. 86‐2
at 4–5.
The plaintiffs argue in opposition that they discovered the fraud through
2
discovery in a separate suit involving the defendants, their claims are based on the
allegedly fraudulent treatment and billing of the defendants’ patients, and the discovery
contained in these files is highly relevant and necessary. They argue that the
Magistrate’s order complies with HIPAA, that patient consent is not required under
HIPAA and that Louisiana law is not only inapplicable, but provides for less stringent
safeguards than HIPAA.
The Court finds that the order of the magistrate is not clearly erroneous or
contrary to law. The Court’s reading of the case relied upon by the defendants, United
States v. The Louisiana Clinic, 2002 WL 31819130 (E.D.La.), indicates that it does not
provide support for the proposition that individual non‐party consent is required in this
matter under Louisiana law.
Accordingly, IT IS ORDERED that the motion to appeal magistrate’s ruling filed
by the defendants Community Health Center, Inc., Community Health & Rehabilitation
Center, Inc., Kathy Hampton, Leon Hampton and Mid City Imaging is DENIED and the
order of the magistrate judge is AFFIRMED. Rec. Doc. 86.
New Orleans, Louisiana, this 25th day of May, 2012.
____________________________________
HELEN G. BERRIGAN
UNITED STATES DISTRICT JUDGE
3
Disclaimer: Justia Dockets & Filings provides public litigation records from the federal appellate and district courts. These filings and docket sheets should not be considered findings of fact or liability, nor do they necessarily reflect the view of Justia.
Why Is My Information Online?