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Sunrise Hospital and Medical Center LLC v. Arizona Physicians IPA Inc.

United States District Court, D. Nevada

July 13, 2018

SUNRISE HOSPITAL AND MEDICAL CENTER, LLC, Plaintiffs,
v.
ARIZONA PHYSICIANS IPA, INC., Defendants.

          ORDER

         Presently before the court is defendant Arizona Physicians IPA, Inc.'s motion to dismiss. (ECF No. 12). Plaintiff Sunrise Hospital and Medical Center, LLC filed a response (ECF No. 15), to which defendant replied (ECF No. 18).

         I. Facts

         Plaintiff is a medical services provider with its principal place of business in Clark County, Nevada. (ECF No. 2). On an unspecified date or dates, plaintiff provided services to unnamed third parties who required urgent medical treatment.[1] Id. These third parties were allegedly enrolled in insurance plans offered by defendant. Id. The complaint does not state whether plaintiff contacted defendant prior to rendering services. Id. Instead, the complaint alleges that “[a]n implied contract was formed between [plaintiff] and [defendant], ” and that defendant “fail[ed] to pay all of the amounts due and owing to [plaintiff] for the services provided to [defendant's] members.” Id.

         On January 22, 2018, plaintiff filed its complaint in state court. Id. Plaintiff's complaint alleges causes of action for breach of implied contract, unjust enrichment and declaratory relief. On February 23, 2018, defendant removed the action to this court. (ECF No. 6).

         II. Legal Standard

         A court may dismiss a complaint for “failure to state a claim upon which relief can be granted.” Fed.R.Civ.P. 12(b)(6). A properly pled complaint must provide “[a] short and plain statement of the claim showing that the pleader is entitled to relief.” Fed.R.Civ.P. 8(a)(2); Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007). While Rule 8 does not require detailed factual allegations, it demands “more than labels and conclusions” or a “formulaic recitation of the elements of a cause of action.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (citation omitted).

         “Factual allegations must be enough to rise above the speculative level.” Twombly, 550 U.S. at 555. Thus, to survive a motion to dismiss, a complaint must contain sufficient factual matter to “state a claim to relief that is plausible on its face.” Iqbal, 556 U.S. 662, 678 (citation omitted).

         In Iqbal, the Supreme Court clarified the two-step approach district courts are to apply when considering motions to dismiss. First, the court must accept as true all well-pled factual allegations in the complaint; however, legal conclusions are not entitled to the assumption of truth. Id. at 678-79. Mere recitals of the elements of a cause of action, supported only by conclusory statements, do not suffice. Id. at 678.

         Second, the court must consider whether the factual allegations in the complaint allege a plausible claim for relief. Id. at 679. A claim is facially plausible when the plaintiff's complaint alleges facts that allow the court to draw a reasonable inference that the defendant is liable for the alleged misconduct. Id. at 678.

         Where the complaint does not permit the court to infer more than the mere possibility of misconduct, the complaint has “alleged-but not shown-that the pleader is entitled to relief.” Id. (internal quotation marks omitted). When the allegations in a complaint have not crossed the line from conceivable to plausible, plaintiff's claim must be dismissed. Twombly, 550 U.S. at 570.

         The Ninth Circuit addressed post-Iqbal pleading standards in Starr v. Baca, 652 F.3d 1202, 1216 (9th Cir. 2011). The Starr court stated, in relevant part:

First, to be entitled to the presumption of truth, allegations in a complaint or counterclaim may not simply recite the elements of a cause of action, but must contain sufficient allegations of underlying facts to give fair notice and to enable the opposing party to defend itself effectively. Second, the factual allegations that are taken as true must plausibly suggest an entitlement to relief, such that it is not unfair to require the opposing party to be subjected to the expense of discovery and continued litigation.

Id.

         III. ...


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