Maxi-Med Supply v. Health Net CA2/8

INTRODUCTION

Plaintiff and Appellant Maxi-Med Supply, Inc. (Maxi-Med) appeals from a judgment after the trial court sustained Defendant and Respondent Health Net, LLC’s (Health Net) demurrer to Maxi-Med’s second amended complaint without leave to amend. Maxi-Med alleged causes of action for breach of implied-in-fact contract, fraud, and unfair business practices in violation of Business and Professions Code section 17200. Each of Maxi-Med’s causes of action are based on Health Net’s failure to reimburse Maxi-Med for medical supplies provided by Maxi- Med to Health Net’s insureds. We conclude the trial court properly sustained Health Net’s demurrer. Further, because Maxi-Med has not met its burden to show how it can amend its pleading to state a cause of action under any legal theory, we conclude the trial court did not abuse its discretion in denying leave to amend. Accordingly, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

I. Factual allegations

Maxi-Med’s second amended complaint alleged the following. Maxi-Med is a credentialed provider of medical devices and is enrolled as a Medi-Cal provider with the Department of Health Care Services (DHCS). Health Net is a medical…