Another FHCP / La Ley / MSPR case has been decided by the Federal District Court in Miami, and this time the court has dismissed the case on its finding that the plaintiff, MSPA Claims 1, LLC, does not have standing to pursue a Medicare Secondary Payer recovery action against an alleged primary payer. MSPA Claims 1, LLC v. Infinity Auto Insurance Company, Case No. 16-20320-Civ, decided August 30, 2016.
We have been following this series of lawsuits for some time now. See our September 2015 post.
The court reviewed the language of the assignment agreements. Florida Health Care Plus (FHCP) entered into a written agreement with La Ley Recovery Systems, Inc. assigning its MSP reimbursement rights (including alleged private cause of action and double recovery claims) to La Ley. Under that agreement, La Ley could further assign the rights to another entity, but only on FHCP's approval. There was no averment in the complaint that such approval had been granted, and thus no showing that the condition to a valid sub-assignment had been met.
The court thus concluded that the plaintiff had not demonstrated that it had standing, that is, an established interest that justified its assertion of a legal claim against the defendant. The court cited several other cases involving the same cast of characters, and apparently making the same ruling:
MSPA Claims 1, LLC v. Nat'l Specialty Ins. Co., 16-CV-20401-MGC, ECF No. 61 (S.D. Fla. Aug. 25, 2016);
MSPA Claims 1, LLC v. Tower Hill Prime Ins. Co., No. 16-CV-20459-KMM, ECF No. 42 (S.D. Fla. Aug. 3, 2016);
MSPA Claims 1, LLC v. Tower Hill Prime Ins. Co., 16-CV-20460-KMM, ECF No. 27 (S.D. Fla. Aug. 3, 2016); and
MSPA Claims 1, LLC v. Kingsway Amigo Ins. Co., No. 16-CV-20212-JLK, ECF No. 35 (S.D. Fla. July 27, 2016).
The court made note of a filing that had been made in state courts in Leon County, involving the Florida Department of Financial Services, said to be acting as "receiver" for FHCP, La Ley, and MSPA Claims 1, LLC. No further information about this filing is available at this point.