The Depot, Inc. et al v. Caring for Montanans, Inc. et al

Filing 71

ORDER DISMISSING CASE. This case is closed. Signed by Judge Dana L. Christensen on 10/23/2019. (ASG)

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MONTANA
MISSOULA DIVISION

FILED,
OCT.2 3 2019
Clerk, U.S. District Gour
District Of Montana
Missoula

CV 16-74-M-DLC

THE DEPOT, INC., a Montana
Corporation, UNION CLUB BAR,
INC., a Montana Corporation, and
TRAIL HEAD, INC., a Montana
Corporation, on behalf of themselves
and all those similarly situated,

ORDER

Plaintiffs,
vs.
CARING FOR MONTANANS, INC.,
F/K/A BLUE CROSS AND BLUE
SHIELD OF MONTANA, INC.,
HEALTH CARE SERVICE CORP., and
JOHN DOES I-X,
Defendants.
On February 7, 2019, the Ninth Circuit issued an opinion affirming in part
and reversing in part this Court's Order of June 23, 2017. The Ninth Circuit
remanded the case to this Court to determine whether it should retain jurisdiction
over the Plaintiffs' state law claims. This case has been stayed pending
disposition of the Defendants' petition for certiorari. Having considered the
parties' briefs regarding supplemental jurisdiction, the Court now declines to

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exercise supplemental jurisdiction over Plaintiffs' state law claims and dismisses
this case.
Because this Court had federal question jurisdiction over Plaintiffs' nowdismissed ERISA claims, it may exercise "supplemental jurisdiction over all other
claims that are so related to claims in the action within such original jurisdiction
that they form part of the same case or controversy under Article III of the United
States Constitution." 28 U.S.C. §1367(a). The Court "may decline to exercise
supplemental jurisdiction" if "the district court has dismissed all claims over
which it has original jurisdiction." 28 U.S.C. §1367(c)(3).
This Court has broad discretion over whether to continue to exercise
supplemental jurisdiction. Satey v. JPMorgan Chase & Co., 521 F.3d 1087, 1091
(9th Cir. 2008). The decision should rest on "principles of economy, convenience,
fairness, and comity." Carnegie-Mellon Univ. v. Cohill, 484 U.S. 343, 357 (1988).
The Court finds that these considerations weigh in favor of declining continuing
jurisdiction. Although the Court is familiar with the facts giving rise to this case,
the state court is, too. See Ibsen v. Caring/or Montanas, Inc., 371 P.3d 446
(Mont. 2016). And the present action has not gone beyond the pleading stage,
suggesting that the factors of economy, convenience, and fairness are fairly neutral
in this early phase of litigation. The final factor, comity, weighs strongly in favor

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of dismissal because Plaintiffs' state-law claims are novel and complex, and they
are most appropriately resolved by the state court in the first instance.
Accordingly, IT IS ORDERED that this matter is DISMISSED.
IT IS FURTHER ORDERED that the Clerk of Court shall close this case.
DATED this

2.3ai, ay of October, 2019.
d

Dana L. Christensen, Chief Judge
United States District Court

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