Board of Trustees of the Laborers Health & Welfare Trust Fund v. Doctors Medical Center

dissenting:

I respectfully disagree with the majority’s conclusion that federal subject matter jurisdiction is lacking. This is nothing more than a dispute over medical necessity for an extra day of hospitalization — a typical claim for benefits due under an ERISA plan covering the patient. I believe that the underlying dispute falls squarely within the test articulated by the Supreme Court in Aetna Health Inc. v. Davila, 542 U.S. 200 , 124 S.Ct. 2488 , 159 L.Ed.2d 312 (2004), and would conclude that the Hospital’s claims are subject to complete preemption under § 502(a)(1)(B) of the Employee Retirement Income Security Act, 29 U.S.C. § 1132 (a)(1)(B). Therefore, I dissent.

MEMORANDUM *

Laborers Health and Welfare Trust Fund for Northern California (“the Fund”) seeks a judgment enjoining the arbitration proceedings initiated against it by Doctors Medical Center of Modesto (“the Hospital”). The Fund contends that the Hospital’s action is completely preempted by ERISA § 502(a)(1)(B), 29 U.S.C. 1132(a)(1)(B), and that the Hospital’s case must therefore be heard in federal court.

Because § 502 does not completely preempt the Hospital’s state law claims, dismissal was proper.

1. The Fund’s complaint relies entirely on ERISA § 502 for relief.

Section 502(a)(1)(B) provides that

The Fund contends that because the Hospital’s arbitration inevitably reduces to a suit for benefits under § 502(a)(1)(B), the Hospital must therefore pursue those benefits in federal court according to the terms of the ERISA plan and § 502(a)(1)(B).

However, as noted by this court in Marin General Hospital v. Modesto & Empire Traction Co., 581 F.3d 941 (9th Cir.2009) allegations that an ERISA plan has entered into a contract with a third party, and that this contract has been breached, do not fall within § 502(a)(1)(B). As in Marin General, the Hospital in this case does not…