MSP Recovery Claims Series 44, LLC v. Arbella Mutual Insurance Company et al
Filing
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Judge George A. OToole, Jr: ORDER entered. OPINION AND ORDER.For the foregoing reasons, the defendants' Motion to Dismiss (dkt. no. 10 ) is DENIED as to Count I and GRANTED as to Count II.It is SO ORDERED. (de Oliveira, Flaviana)
UNITED STATES DISTRICT COURT
DISTRICT OF MASSACHUSETTS
CIVIL ACTION NO. 22-11284-GAO
MSP Recovery Claims Series 44, LLC,
Plaintiff,
v.
Arbella Mutual Insurance Company et al,
Defendants.
OPINION AND ORDER
March 27, 2024
O’TOOLE, D.J.
Plaintiff MSP Recovery Claims Series 44, LLC (“MSP”) commenced this suit against
defendants Arbella Mutual Insurance Company, Arbella Indemnity Insurance Company, Inc., and
Arbella Protection Insurance Company, Inc. (collectively “Arbella”). Plaintiff is seeking double
damages for allegedly deficient medical expense reimbursements under the Medicare Secondary
Payer Act (“MSP Act”), 42 U.S.C. § 1395y, (Count I) and a declaratory judgment pursuant to 28
U.S.C. § 2201 that the defendants are obligated to reimburse the plaintiff’s assignor and share
payment information (Count II). Defendants have moved to dismiss the action. The motion is
denied in part granted in part.
The motion is denied without prejudice as to Count I. Taking all inferences in the plaintiff’s
favor, Count I is sufficient at this early stage of litigation. An adequate assessment of whether
Count I should be dismissed requires further development of the relevant facts. Particularly, further
information about the defendants’ Section 111 reports, the alleged settlement agreement between
the defendants and the representative beneficiaries, and any correspondence between the two
parties prior to the suit would be helpful in this assessment.
The motion is granted as to Count II. The Declaratory Judgment Act authorizes a federal
court to “declare the rights and other legal relations of any interested party” in a case of actual
controversy. 28 U.S.C. § 2201. However, the Act “neither imposes an unflagging duty upon the
courts to decide declaratory judgment actions nor grants an entitlement to litigants to demand
declaratory remedies.” Ernst & Young v. Depositors Econ. Prot. Corp., 45 F.3d 530, 534 (1 st Cir.
1995). “Because the Act offers a window of opportunity, not a guarantee of access, the courts, not
the litigants, ultimately must determine when declaratory judgments are appropriate and when they
are not.” Id. In other words, “federal courts retain substantial discretion in deciding whether to
grant declaratory relief.” Id.
Plaintiff “seeks a declaratory judgment from this Court establishing that Arbella has a
historical, present, and continuing duty to reimburse BCBSRI for payments made on behalf of
beneficiaries’ accident-related medical expenses.” (Compl. ¶ 79 (dkt. no. 1).) However, because
the plaintiff has not alleged any facts to show that the defendants have a duty to reimburse BCBSRI
for payments beyond the payments made to the representative beneficiaries in Count I, the only
actual controversy between the parties is pled under Count I. Plaintiff’s Count II seems to be a
fishing expedition for information beyond the concrete dispute and is not appropriate for a
declaratory judgment.
For the foregoing reasons, the defendants’ Motion to Dismiss (dkt. no. 10) is DENIED as
to Count I and GRANTED as to Count II.
It is SO ORDERED.
/s/ George A. O’Toole Jr.
United States District Judge
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