United Healthcare Services, Inc., United Healthcare Insurance Company, United Heathcare Benefits of Texas, Inc. and United Healthcare of Texas, Inc. v. Hortencia Luna Gonzales and River Oaks Emergency Center, LLC, St Michael's Emergency Center LLC, the Woodlands FEC LLC, Brian Orsak and Shannon Orsak, Jacob Varon, First Street Hospital LP, First Surgical LLC and First Surgical Partners Holding Inc. ( 2018 )

No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. First Street Hospital, LP; First Surgical Partners, LLC; First Surgical Partner Holdings, Inc.; and Jacob Varon (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action FILED IN Granted as to 1st COURT United’s OFchallenging claims APPEALS facility fees that “Preemption Responses”: HOUSTON, were incurred between November TEXAS 10, 2011 and the date Traditional • United’s claims for Defendants’ fraud in the bills they of termination3/20/2018 4:05:43 of First Street’s PM management agreements Preemption (4/29/16 MSJ; submitted to United do not challenge any decision by CMS, with its FECs. Denied as to claims challenging fees that CHRISTOPHER A. PRINE Varon’s Renewed MSJ and Texas law imposes its own requirements for exemption were not incurred during that period. CR3:1444 (July 8, Clerk (8/1/16)). CR1:794-821; from licensure requirements. CR2:851-53. 2016 Order). 1SuppCR6:2859-67. • Even if preemption exists, it would not bar United’s claims Varon’s Renewed MSJ granted in part to the same extent that pre-date the “granting” of PBE status. CR2:856-57. as First Street’s motion was granted in the Court’s July 8, 2016 Order. CR5:2943-44. “Fraud Responses”: Granted as to all claims except United’s money had and • United’s fraud cause of action accrued when Defendants Traditional received claims for payments that United made after Fraud, submitted and United paid the fraudulent bills that caused Statute of Limitations and No August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Fraudulent Non- United’s injuries. CR3:1473. Justifiable Reliance (6/16/16 March 23, 2017, United non-suited its remaining claims Disclosure • Defendants’ fraudulent concealment raises a fact question. Joinder in Crumley’s MSJ for money had and received for payments made after (3rd Amd. Pet.); CR3:1474-76. 1SuppCR5:2669-89). August 28, 2013, and on July 11, 2017, the trial court CR3:1360-62, • Conspiracy is a derivative of fraud and should thus have the CR2:1061-78. signed an Order Dismissing Non-Suited claims. ¶¶ 65-69 same limitations period. CR3:1480-81. 2SuppCR:3. • Justifiable reliance is a question of fact. CR3:1481-83. No-Evidence (8/1/16). CR4:2164-83 • There is evidence that Defendants falsely represented that Elements Challenged: First Street was the provider on their bills. CR4:2601-04. Misrepresentation, justifiable • Even though Dr. Varon never directly made any reliance and injury. representations to United, he is liable for fraud as a party to a Denied. CR5:2943 (Oct. 6, 2016 Order). CR4:2168-78. fraudulent scheme. CR4:2604-05. Traditional (8/1/16) • There is evidence that United justifiably relied on CR4:2164-83 representations made by Defendants. CR4:2605-07. Voluntary Payment Doctrine; • The voluntary payment rule does not apply. CR4:2607-08. CR4:2179-80. 1 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. First Street Hospital, LP; First Surgical Partners, LLC; First Surgical Partner Holdings, Inc.; and Jacob Varon (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of Traditional termination of First Street’s management agreements with Preemption (4/29/16 MSJ; its FECs. Denied as to claims challenging fees that were not Varon’s Renewed MSJ (8/1/16)). See “Preemption Responses” from Page 1. incurred during that period. CR3:1444 (July 8, 2016 Order). CR1:794-821; Varon’s Renewed MSJ granted in part to the same extent as 1SuppCR6:2859-67. First Street’s motion was granted in the Court’s’ July 8, 2016 Order. CR5:2943-44. Traditional Granted as to all claims except United’s money had and Negligent received claims for payments that United made after August Misrep., Statute of Limitations and No 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On March 23, (3rd Amd. Pet.); Justifiable Reliance (6/16/16 See “Fraud Responses” from Page 1. 2017, United non-suited its remaining claims for money had CR3:1362-63, Joinder in Crumley’s MSJ and received for payments made after August 28, 2013, and ¶¶ 70-72. 1SuppCR5:2669-89). on July 11, 2017, the trial court signed an Order Dismissing CR2:1061-78. Non-Suited claims. 2SuppCR:3. No-Evidence (8/1/16). Elements Challenged: • There is evidence that Defendants falsely represented that Misrepresentation, justifiable First Street was the provider on their bills. CR4:2601-04. reliance and injury. • There is evidence that United justifiably relied on Denied. CR5:2943 (Oct. 6, 2016 Order). CR4: 2168-78. representations made by Defendants. CR4:2605-07. Traditional (8/1/16) • The voluntary payment rule does not apply. CR4:2607-08. Voluntary Payment Doctrine CR4:2179-80. 2 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. First Street Hospital, LP; First Surgical Partners, LLC; First Surgical Partner Holdings, Inc.; and Jacob Varon (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of Traditional termination of First Street’s management agreements with Preemption (4/29/16 MSJ; its FECs. Denied as to claims challenging fees that were not Varon’s Renewed MSJ (8/1/16)). See “Preemption Responses” from Page 1. incurred during that period. CR3:1444 (July 8, 2016 Order). CR1:794-821; Varon’s Renewed MSJ granted in part to the same extent as 1SuppCR6:2859-67. First Street’s motion was granted in the Court’s’ July 8, 2016 Order. CR5:2943-44. Granted as to all claims except United’s money had and Traditional received claims for payments that United made after August Statute of Limitations 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On March 23, Money Had & (6/16/16 Joinder in Crumley’s See “Fraud Responses” from Page 1. 2017, United non-suited its remaining claims for money had Rec’d., MSJ1SuppCR5:2669-89). and received for payments made after August 28, 2013, and (3rd Amd. Pet.); CR2:1061-78. on July 11, 2017, the trial court signed an Order Dismissing CR3:1363, Non-Suited claims. 2SuppCR:3. ¶¶ 73-74. • In their No Evidence and Traditional Motion for Summary Judgment, the First Street Defendants and Dr. Varon asserted that, for the same reasons that United’s fraud and negligent No-Evidence (8/1/16) CR4:2178 & n.2. misrepresentation claims failed, United’s money had and received, unjust enrichment, civil conspiracy, and aiding and abetting claims also failed. CR4:2178 & n.2. Therefore, Traditional (8/1/16) Denied. CR5:2943 (Oct. 6, 2016 Order). United’s responses to the fraud and negligent Voluntary Payment Doctrine misrepresentation grounds in the No Evidence and CR4:2179-80. Traditional Motion for Summary Judgment also would apply to the money had and received, unjust enrichment, civil conspiracy, and aiding and abetting claims. • The voluntary payment rule does not apply. CR4:2607-08. 3 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. First Street Hospital, LP; First Surgical Partners, LLC; First Surgical Partner Holdings, Inc.; and Jacob Varon (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of Traditional termination of First Street’s management agreements with Preemption (4/29/16 MSJ; its FECs. Denied as to claims challenging fees that were not Varon’s Renewed MSJ (8/1/16)). See “Preemption Responses” from Page 1. incurred during that period. CR3:1444 (July 8, 2016 Order). CR1:794-821; Varon’s renewed MSJ granted in part to the same extent as 1SuppCR6:2859-67. First Street’s motion was granted in the Court’s July 8, 2016 Order. CR5:2943-44. Granted as to all claims except United’s money had and Traditional received claims for payments that United made after August Statute of Limitations 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On March 23, Unjust (6/16/16 Joinder in Crumley’s See “Fraud Responses” from Page 1. 2017, United non-suited its remaining claims for money had Enrichment, MSJ 1SuppCR5:2669-89). and received for payments made after August 28, 2013, and (3rd Amd. Pet.); CR2:1061-78. on July 11, 2017, the trial court signed an Order Dismissing CR3:1363, Non-Suited claims. 2SuppCR:3. ¶¶ 75-77. • In their No Evidence and Traditional Motion for Summary Judgment, the First Street Defendants and Dr. Varon asserted that, for the same reasons that United’s fraud and negligent No-Evidence (8/1/16) misrepresentation claims failed, United’s money had and CR4:2178 & n.2 received, unjust enrichment, civil conspiracy, and aiding and abetting claims also failed. CR4:2178 & n.2. Therefore, Denied. CR5:2943 (Oct. 6, 2016 Order). Traditional (8/1/16) United’s responses to the fraud and negligent Voluntary Payment Doctrine misrepresentation grounds in the No Evidence and CR4:2179-80. Traditional Motion for Summary Judgment also would apply to the money had and received, unjust enrichment, civil conspiracy, and aiding and abetting claims. • The voluntary payment rule does not apply. CR4:2607-08. 4 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. First Street Hospital, LP; First Surgical Partners, LLC; First Surgical Partner Holdings, Inc.; and Jacob Varon (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of Traditional termination of First Street’s management agreements with Preemption (4/29/16 MSJ; its FECs. Denied as to claims challenging fees that were not Varon’s Renewed MSJ (8/1/16)). See “Preemption Responses” from Page 1. incurred during that period. CR3:1444 (July 8, 2016 Order). CR1:794-821; 1SuppCR6:2859-67. Varon’s renewed MSJ granted in part to the same extent as First Street’s motion was granted in the Court’s July 8, 2016 Order. CR5:2943-44. Granted as to all claims except United’s money had and Traditional received claims for payments that United made after August Statute of Limitations 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On March 23, Civil Conspiracy, (6/16/16 Joinder in Crumley’s See “Fraud Responses” from Page 1. 2017, United non-suited its remaining claims for money had (3rd Amd. Pet.); MSJ; 1SuppCR5:2669-89). and received for payments made after August 28, 2013, and CR3:1363-64, CR2:1061-78. on July 11, 2017, the trial court signed an Order Dismissing ¶¶ 78-81. Non-Suited claims. 2SuppCR:3. • In their No Evidence and Traditional Motion for Summary Judgment, the First Street Defendants and Dr. Varon asserted No-Evidence (8/01/16). that, for the same reasons that United’s fraud and negligent CR4:2178 & n.2. misrepresentation claims failed, United’s money had and received, unjust enrichment, civil conspiracy, and aiding and abetting claims also failed. CR4:2178 & n.2. Therefore, Traditional (8/1/16) Denied. CR5:2943 (Oct. 6, 2016 Order). United’s responses to the fraud and negligent Voluntary Payment Doctrine misrepresentation grounds in the No Evidence and CR4:2179-80. Traditional Motion for Summary Judgment also would apply to the money had and received, unjust enrichment, civil conspiracy, and aiding and abetting claims. • The voluntary payment rule does not apply. CR4:2607-08. 5 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. First Street Hospital, LP; First Surgical Partners, LLC; First Surgical Partner Holdings, Inc.; and Jacob Varon (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of Traditional termination of First Street’s management agreements with Preemption (4/29/16 MSJ; its FECs. Denied as to claims challenging fees that were not Varon’s Renewed MSJ (8/1/16)). See “Preemption Responses” from Page 1. incurred during that period. CR3:1444 (July 8, 2016 Order). CR1:794-821; Varon’s renewed MSJ granted in part to the same extent as 1SuppCR6:2859-67. First Street’s motion was granted in the Court’s July 8, 2016 Order. CR5:2943-44. Aiding & • In their No Evidence and Traditional Motion for Summary Abetting, Judgment, the First Street Defendants and Dr. Varon asserted (3rd Amd. Pet.); that, for the same reasons that United’s fraud and negligent CR3:1364, No-Evidence misrepresentation claims failed, United’s money had and ¶¶ 82-85 CR4:2178 & n.2 received, unjust enrichment, civil conspiracy, and aiding and abetting claims also failed. CR4:2178 & n.2. Therefore, Traditional (8/1/16) Denied. CR5:2943 (Oct. 6, 2016 Order). United’s responses to the fraud and negligent Voluntary Payment Doctrine. misrepresentation grounds in the No Evidence and CR4:2179-80. Traditional Motion for Summary Judgment also would apply to the money had and received, unjust enrichment, civil conspiracy, and aiding and abetting claims. • The voluntary payment rule does not apply. CR4:2607-08. Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of Declaratory termination of First Street’s management agreements with Judgment, Traditional its FECs. Denied as to claims challenging fees that were not (3rd Amd. Pet.); See “Preemption Responses” from Page 1. Preemption. CR1:818-19. incurred during that period. CR3:1444 (July 8, 2016 Order). CR3:1369-70, Varon’s renewed MSJ granted in part to the same extent as ¶¶ 104-05. First Street’s motion was granted in the Court’s July 8, 2016 Order. CR5:2943-44. 6 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. St. Michael’s Emergency Center, LLC; The Woodlands FEC, LLC; Shannon Orsak; and Brian Orsak (1) Cause of (2) MSJ Grounds (3) MSJ Response (4) Trial Court’s Ruling Action “Preemption Responses”: • United’s claims for Defendants’ fraud in the bills they Traditional submitted to United do not challenge any decision by CMS, Preemption (5/5/16 Joinder in and Texas law imposes its own requirements for exemption Denied. CR3:1445 (July 8, 2016 Order). First Street’s 4/29/16 MSJ). from licensure requirements. CR2:851-53. CR2:822-24. • Even if preemption exists, it would not bar United’s claims that pre-date the “granting” of PBE status. CR2:856-57. “Fraud Responses”: Granted as to all claims except United’s money had and Traditional • United’s fraud cause of action accrued when Defendants received claims for payments that United made after Statute of Limitations and No submitted and United paid the fraudulent bills that caused August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Justifiable Reliance (6/17/16 United’s injuries. CR3:1473. March 23, 2017, United non-suited its remaining claims Joinder in Crumley’s MSJ; • Defendants’ fraudulent concealment raises a fact question. for money had and received for payments made after Fraud, 8/1/16 MSJ; 8/1/16 Joinder)). CR3:1474-76. August 28, 2013, and on July 11, 2017, the trial court Fraudulent CR2:1265-67; CR4:2476-77; • Conspiracy is a derivative of fraud and should thus have the signed an Order Dismissing Non-Suited claims. Non-Disclosure CR4:2503-09. same limitations period. CR3:1480-81. 2SuppCR:3. (3rd Amd. Pet.); • Justifiable reliance is a question of fact. CR3:1481-83. CR3:1360-62, Traditional (8/1/16). ¶¶ 65-69 CR4:2503-08. St. Michael’s and The Granted in part and Denied in part to the same extent as • PBE status is no bar to United’s claims against Defendants Woodlands FEC conclusively the Court’s ruling on the motion that was joined. for these pre-PBE fraudulent bills. CR4:2554-55. established their entitlement to CR5:2944 (Oct. 6, 2016 Order). facility fees. CR4:2506-07. • There is evidence that Defendants falsely represented that No-Evidence (8/1/16). First Street was the provider on their bills. CR4:2604-07. CR4:2439-47. • There is evidence that United justifiably relied on Granted in part as to United’s claims against Shannon Elements Challenged: representations made by Defendants. CR4:2605-07. Orsak and Brian Orsak and Denied in part as to the Misrepresentation, reliance, •Defendants are liable for fraud as a party to a fraudulent remainder. CR5:2943 (Oct. 6, 2016 Order). duty, opportunity to discover scheme. CR4:2576-77. facts, and injury. CR4:2441-45. • There is evidence of duty to disclose the truth. CR4:2577. 7 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. St. Michael’s Emergency Center, LLC; The Woodlands FEC, LLC; Shannon Orsak; and Brian Orsak (1) Cause of (2) MSJ Grounds (3) MSJ Response (4) Trial Court’s Ruling Action Traditional Preemption See “Preemption Responses” from Page 7. Denied. CR3:1445 (July 8, 2016 Order). CR2:822-24. Granted as to all claims except United’s money had and received claims for payments that United made after Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Statute of Limitations and No March 23, 2017, United non-suited its remaining claims Reliance (6/17/16 Joinder; See “Fraud Responses” from Page 7. for money had and received for payments made after Negligent 8/1/16 MSJ). CR2:1265-67; August 28, 2013, and on July 11, 2017, the trial court Misrep., CR4:2476-77; CR4:2503-09. signed an Order Dismissing Non-Suited claims. (3rd Amd. Pet.); 2SuppCR:3. CR3:1362-63, Traditional (8/1/16) ¶¶ 70-72. St. Michael’s and The Granted in part and Denied in part to the same extent as Woodlands FEC conclusively See “Fraud Responses” from Page 7. the Court’s ruling on the motion that was joined. established their entitlement CR5:2944 (Oct. 6, 2016 Order). to facility fees. CR4:2506-07. No-Evidence (8/1/16) Granted in part as to United’s claims against Shannon Elements Challenged: • There is evidence of misrepresentation, reliance and injury. Orsak and Brian Orsak and Denied in part as to the Misrepresentation, reliance CR4:2577-78. remainder. CR5:2943 (Oct. 6, 2016 Order). and injury. CR4:2444-45. Traditional Preemption (5/5/16 Joinder in See “Preemption Responses” from Page 7. Denied. CR3:1445 (July 8, 2016 Order). First Street’s 4/29/16 MSJ). CR2:822-24. Granted as to all claims except United’s money had and received claims for payments that United made after Traditional Money Had & August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Statute of Limitations (6/17/16 Rec’d., March 23, 2017, United non-suited its remaining claims Joinder; 8/1/16 MSJ). See “Fraud Responses” from Page 7. (3rd Amd. Pet.); for money had and received for payments made after CR2:1265-67; CR4:2476-77; CR3:1363, August 28, 2013, and on July 11, 2017, the trial court CR4:2503-09. ¶¶ 73-74. signed an Order Dismissing Non-Suited claims. 2SuppCR:3. Traditional (8/1/16) St. Michael’s and The Granted in part and Denied in part to the same extent as Woodlands FEC conclusively See “Fraud Responses” from Page 7. the Court’s ruling on the motion that was joined. established their entitlement CR5:2944 (Oct. 6, 2016 Order). to facility fees. CR4:2506-07. 8 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. St. Michael’s Emergency Center, LLC; The Woodlands FEC, LLC; Shannon Orsak; and Brian Orsak (1) Cause of (2) MSJ Grounds (3) MSJ Response (4) Trial Court’s Ruling Action Money Had & No-Evidence (8/1/16) • There is evidence St. Michael’s Defendants obtained facility Rec’d. (cont’d), CR4:2439-47. Granted in part as to United’s claims against Shannon fee payments from United on bills that represented First (3rd Amd. Pet.); Elements Challenged: Orsak and Brian Orsak and Denied in part as to the Street was the provider performing the services being billed. CR3:1363, Defendants are holding money. remainder. CR5:2943 (Oct. 6, 2016 Order). CR4:2580. ¶¶ 73-74. CR4:2445. Traditional See “Preemption Responses” from Page 7. Denied. CR3:1445 (July 8, 2016 Order). Preemption. CR2:822-24. Granted as to all claims except United’s money had and received claims for payments that United made after Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Statute of Limitations (6/17/16 March 23, 2017, United non-suited its remaining claims Joinder; 8/1/16 MSJ). See “Fraud Responses” from Page 7. for money had and received for payments made after CR2:1265-67; CR4:2476-77; August 28, 2013, and on July 11, 2017, the trial court Unjust CR4:2503-09. signed an Order Dismissing Non-Suited claims. Enrichment, 2SuppCR:3. (3rd Amd. Pet.); Traditional (8/1/16) CR3:1363, St. Michael’s and The Granted in part and Denied in part to the same extent as ¶¶ 75-77. Woodlands FEC conclusively See “Fraud Responses” from Page 7. the Court’s ruling on the motion that was joined. established their entitlement CR5:2944 (Oct. 6, 2016 Order). to facility fees. CR4:2506-07. No-Evidence (8/1/16) • There is evidence St. Michael’s Defendants obtained facility CR4:2439-47. Granted in part as to United’s claims against Shannon fee payments from United on bills that represented First Elements Challenged: Orsak and Brian Orsak and Denied in part as to the Street was the provider performing the services being billed. Defendants are holding money. remainder. CR5:2943 (Oct. 6, 2016 Order). CR4:2580. CR4:2445. Traditional See “Preemption Responses” from Page 7. Denied. CR3:1445 (July 8, 2016 Order). Preemption. CR2:822-24. Granted as to all claims except United’s money had and Civil Conspiracy, received claims for payments that United made after Traditional (3rd Amd. Pet.); August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Statute of Limitations (6/17/16 CR3:1363-64, March 23, 2017, United non-suited its remaining claims Joinder; 8/1/16 MSJ). See “Fraud Responses” from Page 7. ¶¶ 78-81. for money had and received for payments made after CR2:1265-67; CR4:2476-77; August 28, 2013, and on July 11, 2017, the trial court CR4:2503-09. signed an Order Dismissing Non-Suited claims. 2SuppCR:3. 9 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. St. Michael’s Emergency Center, LLC; The Woodlands FEC, LLC; Shannon Orsak; and Brian Orsak (1) Cause of (2) MSJ Grounds (3) MSJ Response (4) Trial Court’s Ruling Action Traditional (8/1/16) St. Michael’s and The Granted in part and Denied in part to the same extent as Woodlands FEC conclusively See “Fraud Responses” from Page 7. the Court’s ruling on the motion that was joined. Civil Conspiracy established their entitlement CR5:2944 (Oct. 6, 2016 Order). (cont’d), to facility fees. CR4:2506-07. (3rd Amd. Pet.); No-Evidence (8/1/16) CR3:1363-64, CR4:2439-47. • There is evidence Defendants engaged in unlawful overt Granted in part as to United’s claims against Shannon ¶¶ 78-81. Elements Challenged: acts and employed unlawful means in furtherance of their Orsak and Brian Orsak and Denied in part as to the Defendants did an unlawful act conspiracy. CR4:2578-79. remainder. CR5:2943 (Oct. 6, 2016 Order). and damages. CR4:2445-46. Traditional See “Preemption Responses” from Page 7. Denied. CR3:1445 (July 8, 2016 Order). Preemption. CR2:822-24. Granted as to all claims except United’s money had and received claims for payments that United made after Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Statute of Limitations (6/17/16 March 23, 2017, United non-suited its remaining claims Joinder; 8/1/16 MSJ). See “Fraud Responses” from Page 7. for money had and received for payments made after CR2:1265-67; CR4:2476-77; August 28, 2013, and on July 11, 2017, the trial court CR4:2503-09. signed an Order Dismissing Non-Suited claims. 2SuppCR3. Aiding & Traditional (8/1/16) Abetting, St. Michael’s and The Granted in part and Denied in part to the same extent as (3rd Amd. Pet.); Woodlands FEC conclusively See “Fraud Responses” from Page 7. the Court’s ruling on the motion that was joined. CR3:1364, established their entitlement CR5:2944 (Oct. 6, 2016 Order). ¶¶ 82-85 to facility fees. CR4:2506-07. No-Evidence (8/1/16) CR4:2439-47. Elements Challenged: • There is evidence Defendants St. Michael's Defendants Defendants conduct does not schemed with other Defendants to improperly obtain facility Granted in part as to United’s claims against Shannon constitute highly dangerous, fees from United and gave each other assistance and Orsak and Brian Orsak and Denied in part as to the deviant or antisocial behavior encouragement in submitting their various fraudulent bills to remainder. CR5:2943 (Oct. 6, 2016 Order). likely to cause injury, death or United. CR4:2579-80. certain harm to a large group of people. CR4:2446-47. 10 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. St. Michael’s Emergency Center, LLC; The Woodlands FEC, LLC; Shannon Orsak; and Brian Orsak (1) Cause of (2) MSJ Grounds (3) MSJ Response (4) Trial Court’s Ruling Action Declaratory Judgment, Traditional (3rd Amd. Pet.); See “Preemption Responses” from Page 7. Denied. CR3:1445 (July 8, 2016 Order). Preemption CR1:818-19. CR3:1369-70, ¶¶ 104-05. 11 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. Emergency Healthcare Partners, LP d/b/a Memorial Heights Emergency Center (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action “Preemption Responses”: • United’s claims for Defendants’ fraud in the bills they Traditional submitted to United do not challenge any decision by CMS, Preemption (5/6/16 Joinder in and Texas law imposes its own requirements for exemption Denied. CR3:1445 (July 8, 2016 Order). First Street’s 4/29/16 MSJ). from licensure requirements. CR2:851-53. CR2:831-33. • Even if preemption exists, it would not bar United’s claims that pre-date the “granting” of PBE status. CR2:856-57. “Fraud Responses”: Granted as to all claims except United’s money had and • United’s fraud cause of action accrued when Defendants received claims for payments that United made after submitted and United paid the fraudulent bills that caused Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On United’s injuries. CR3:1473. Statute of Limitations and No March 23, 2017, United non-suited its remaining claims • Defendants’ fraudulent concealment raises a fact question. Fraud, Reliance (6/17/16 Joinder in for money had and received for payments made after CR3:1474-76. Fraudulent Non- Crumley’s MSJ). CR2:1261-64. August 28, 2013, and on July 11, 2017, the trial court • Conspiracy is a derivative of fraud and should thus have the Disclosure signed an Order Dismissing Non-Suited claims. same limitations period. CR3:1480-81. (3rd Amd. Pet.); 2SuppCR:3. • Justifiable reliance is a question of fact. CR3:1481-83. CR3:1360-62, ¶¶ 65-69 No-Evidence (8/1/16) CR4:2478-99. Elements Challenged: • United has standing as a fiduciary. CR4:2692-94. Misrepresentation, Reliance, • There is evidence that Defendants falsely represented that duty, defendant knew that First Street was the provider on their bills. CR4:2694. Denied as to fraud and granted as to fraudulent non- United was ignorant of the • Defendants are liable for fraud as a party to a fraudulent disclosure. CR5:2943 (Oct. 6, 2016 Order). facts and did not have an equal scheme. CR4:2695. opportunity to discover the • There is evidence of duty to disclose the truth. facts, Defendant remained CR4:2694-95. deliberately silent, reliance and injury. CR4:2486-88. 12 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. Emergency Healthcare Partners, LP d/b/a Memorial Heights Emergency Center (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action Traditional Preemption (5/6/16 Joinder in See “Preemption Responses” from Page 12. Denied. CR3:1445 (July 8, 2016 Order). First Street’s 4/29/16 MSJ). CR2:831-33. Granted as to all claims except United’s money had and received claims for payments that United made after Negligent Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Misrep., Statute of Limitations and No March 23, 2017, United non-suited its remaining claims (3rd Amd. Pet.); See “Fraud Responses” from Page 12. Reliance (6/17/16 Joinder in for money had and received for payments made after CR3:1362-63, Crumley’s MSJ). CR2:1261-64. August 28, 2013, and on July 11, 2017, the trial court ¶¶ 70-72. signed an Order Dismissing Non-Suited claims. 2SuppCR:3. No-Evidence (8/1/16) Elements Challenged: • There is evidence of reliance, misrepresentation and injury. Denied. CR5:2943 (Oct. 6, 2016 Order). Reliance, misrepresentation CR4:2696-97. and injury. CR4:2488-89. Traditional Preemption (5/6/16 Joinder in See “Preemption Responses” from Page 12. Denied. CR3:1445 (July 8, 2016 Order). First Street’s 4/29/16 MSJ). CR2:831-33. Granted as to all claims except United’s money had and received claims for payments that United made after Money Had & Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Rec’d., Statute of Limitations (6/17/16 March 23, 2017, United non-suited its remaining claims (3rd Amd. Pet.); See “Fraud Responses” from Page 12. Joinder in Crumley’s MSJ). for money had and received for payments made after CR3:1363, CR2:1261-64. August 28, 2013, and on July 11, 2017, the trial court ¶¶ 73-74. signed an Order Dismissing Non-Suited claims. 2SuppCR:3. No-Evidence (8/1/16) Elements Challenged: • There is evidence United has an ownership interest in the Denied. CR5:2943 (Oct. 6, 2016 Order). Ownership interest in the money. CR4:2698. money. CR4:2489-90. 13 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. Emergency Healthcare Partners, LP d/b/a Memorial Heights Emergency Center (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action Traditional Preemption (5/6/16 Joinder in See “Preemption Responses” from Page 12. Denied. CR3:1445 (July 8, 2016 Order) First Street’s 4/29/16 MSJ). CR2:831-33. Granted as to all claims except United’s money had and received claims for payments that United made after August Traditional Unjust 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On March 23, Statute of Limitations (6/17/16 Enrichment, See “Fraud Responses” from Page 12. 2017, United non-suited its remaining claims for money had Joinder in Crumley’s MSJ). (3rd Amd. Pet.); and received for payments made after August 28, 2013, and CR2:1261-64. on July 11, 2017, the trial court signed an Order Dismissing CR3:1363, ¶¶ 75-77. Non-Suited claims. 2SuppCR:3. No-Evidence (8/1/16) Element Challenged: That Defendant wrongfully • There is evidence Defendants wrongfully received facility Denied. CR5:2943 (Oct. 6, 2016 Order). secured or passively received a fees. CR4:2698. benefit that would be wrong to retain. CR4:2490-91. Traditional Preemption (5/6/16 Joinder in See “Preemption Responses” from Page 12. Denied. CR3:1445 (July 8, 2016 Order). First Street’s 4/29/16 MSJ). Civil Conspiracy, CR2:831-33. (3rd Amd. Pet.); Granted as to all claims except United’s money had and CR3:1363-64, received claims for payments that United made after August Traditional 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On March 23, ¶¶ 78-81. Statute of Limitations (6/17/16 See “Fraud Responses” from Page 12. 2017, United non-suited its remaining claims for money had Joinder in Crumley’s MSJ). and received for payments made after August 28, 2013, and CR2:1261-64. on July 11, 2017, the trial court signed an Order Dismissing Non-Suited claims. 2SuppCR:3. 14 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. Emergency Healthcare Partners, LP d/b/a Memorial Heights Emergency Center (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action No-Evidence (8/1/16) Elements Challenged: Defendant was a member of a combination of 2 or more Civil Conspiracy actors, had a meeting of the (cont’d), minds, one of the members • Defendants engaged in unlawful avert acts and employed (3rd Amd. Pet.); Denied. CR5:2943 (Oct. 6, 2016 Order). committed an unlawful overt unlawful means in furtherance of their conspiracy. CR4:2697. CR3:1363-64, act to further the course and ¶¶ 78-81. injury. CR4:2490-91. Traditional (8/1/16) Underlying torts were time- barred. CR4:2491-92. Traditional Preemption (5/6/16 Joinder in See “Preemption Responses” from Page 12. Denied. CR3:1445 (July 8, 2016 Order). Aiding & First Street’s 4/29/16 MSJ). Abetting, CR2:831-33. (3rd Amd. Pet.); No-Evidence (8/1/16) CR3:1364, Elements Challenged: • Defendants intentionally schemed and gave each other ¶¶ 82-85 Intent and knowledge as to Granted. CR5:2943 (Oct. 6, 2016 Order). assistance and encouragement. CR4:2698. Memorial Heights. CR4:2492-94. Traditional (8/1/16) Declaratory As a matter of law, the claims Judgment, • United’s claim for declaratory relief, however, essentially for declaratory judgment (3rd Amd. Pet.); seeks declarations defining Defendants’ obligations regarding Granted. CR5:2943 (Oct. 6, 2016 Order). duplicated United’s already CR3:1369-70, honest billing in the future. CR4:2699. existing tort claims. ¶¶ 104-05. CR4:2494-95. 15 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. Diane Crumley; Vital Weight Control, Inc.; and Harris County Title Search, Inc. (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of termination of First Street’s management “Preemption Responses”: Traditional agreements with its FECs. Denied as to claims • United’s claims for Defendants’ fraud in the bills they Preemption (5/6/16 Joinder in challenging fees that were not incurred during that submitted to United do not challenge any decision by CMS, First Street’s 4/29/16 MSJ; period. CR3:1444 (July 8, 2016 Order). and Texas law imposes its own requirements for exemption 8/1/16 MSJ). from licensure requirements. CR2:851-53. 1SuppCR5:2537-38; The renewed MSJ filed by Crumley, Vital Weight Control, • Even if preemption exists, it would not bar United’s claims CR4:2261-70. and Harris County Title Search was granted in part to the that pre-date the “granting” of PBE status. CR2:856-57. same extent as First Street’s motion was granted in the Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016 Order). Fraud, “Fraud Responses”: Fraudulent Non- Granted as to all claims except United’s money had and • United’s fraud cause of action accrued when Defendants Disclosure received claims for payments that United made after submitted and United paid the fraudulent bills that caused (3rd Amd. Pet.); Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On United’s injuries. CR3:1473. CR3:1360-62, Statute of Limitations and No March 23, 2017, United non-suited its remaining claims • Defendants’ fraudulent concealment raises a fact question. ¶¶ 65-69 Reliance (6/2/16 MSJ). for money had and received for payments made after CR3:1474-76. 1SuppCR5:2669-89. August 28, 2013, and on July 11, 2017, the trial court • Conspiracy is a derivative of fraud and should thus have the signed an Order Dismissing Non-Suited claims. same limitations period. CR3:1480-81. 2SuppCR:3. • Justifiable reliance is a question of fact. CR3:1481-83. No-Evidence (8/1/16) • United has standing as a fiduciary. CR5:2813-16. CR4:2384-93. • There is evidence that Defendants falsely represented that Elements Challenged: First Street was the provider on their bills. CR5:2816-18. Lack of Standing, • Defendants are liable for fraud as a party to a fraudulent Denied. CR5:2943 (Oct. 6, 2016 Order). Misrepresentation, knowledge scheme. CR5:2816-18. of falsity, acted with reckless • There is evidence of a duty to disclose the truth. disregard, duty, reliance and CR5:2817-18. damages. CR4:2388-89. • There is evidence of knowledge. CR5:2817-18. 16 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. Diane Crumley; Vital Weight Control, Inc.; and Harris County Title Search, Inc. (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of termination of First Street’s management Traditional agreements with its FECs. Denied as to claims Preemption (5/6/16 Joinder in challenging fees that were not incurred during that First Street’s 4/29/16 MSJ; See “Preemption Responses” from Page 16. period. CR3:1444 (July 8, 2016 Order). 8/1/16 MSJ). The renewed MSJ filed by Crumley, Vital Weight Control, 1SuppCR5:2537-38; and Harris County Title Search was granted in part to the CR4:2261-70. same extent as First Street’s motion was granted in the Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016 Negligent Order). Misrep., Granted as to all claims except United’s money had and (3rd Amd. Pet.); received claims for payments that United made after CR3:1362-63, Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On ¶¶ 70-72. Statute of Limitations and No March 23, 2017, United non-suited its remaining claims See “Fraud Responses” from Page 16. Reliance (6/2/16 MSJ). for money had and received for payments made after 1SuppCR5:2669-89. August 28, 2013, and on July 11, 2017, the trial court signed an Order Dismissing Non-Suited claims. 2SuppCR:3. No-Evidence (8/1/16) Elements Challenged: • There is evidence that Defendants falsely represented that Lack of standing, provided false First Street was the provider on their bills, failed to use Granted. CR5:2943 (Oct. 6, 2016 Order). information, exercise reasonable care and United suffered an injury. CR5:2816-18. reasonable care, injury. CR4:2389-90. Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of termination of First Street’s management Traditional Money Had & agreements with its FECs. Denied as to claims Preemption (5/6/16 Joinder in Rec’d., challenging fees that were not incurred during that First Street’s 4/29/16 MSJ; (3rd Amd. Pet.); See “Preemption Responses” from Page 16. period. CR3:1444 (July 8, 2016 Order). 8/1/16 MSJ). CR3:1363, The renewed MSJ filed by Crumley, Vital Weight Control, 1SuppCR5:2537-38; ¶¶ 73-74. and Harris County Title Search was granted in part to the CR4:2261-70. same extent as First Street’s motion was granted in the Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016 Order). 17 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. Diane Crumley; Vital Weight Control, Inc.; and Harris County Title Search, Inc. (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action Granted as to all claims except United’s money had and received claims for payments that United made after August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Traditional March 23, 2017, United non-suited its remaining claims Statute of Limitations (6/2/16 See “Fraud Responses” from Page 16. Money Had & for money had and received for payments made after MSJ). 1SuppCR5:2669-89. Rec’d. (cont’d), August 28, 2013, and on July 11, 2017, the trial court (3rd Amd. Pet.); signed an Order Dismissing Non-Suited claims. CR3:1363, 2SuppCR:3. ¶¶ 73-74. No-Evidence (8/1/16) Elements Challenged: • There is evidence that Defendants received payments. Lack of standing, holds money, Denied. CR5:2943 (Oct. 6, 2016 Order). CR5:2821. and ownership of funds. CR4:2390. Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of Traditional termination of First Street’s management agreements with its FECs. Denied as to claims challenging fees that were not Preemption (5/6/16 Joinder in incurred during that period. CR3:1444 (July 8, 2016 Order). First Street’s 4/29/16 MSJ; See “Preemption Responses” from Page 16. The renewed MSJ filed by Crumley, Vital Weight Control, 8/1/16 MSJ). 1SuppCR5:2537- and Harris County Title Search was granted in part to the 38; CR4:2261-70. same extent as First Street’s motion was granted in the Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016 Order). Unjust Granted as to all claims except United’s money had and Enrichment, received claims for payments that United made after (3rd Amd. Pet.); August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Traditional CR3:1363, March 23, 2017, United non-suited its remaining claims Statute of Limitations (6/2/16 See “Fraud Responses” from Page 16. ¶¶ 75-77. for money had and received for payments made after MSJ). 1SuppCR5:2669-89. August 28, 2013, and on July 11, 2017, the trial court signed an Order Dismissing Non-Suited claims. 2SuppCR:3. No-Evidence (8/1/16) Elements Challenged: Lack of standing, benefit which would be unconscionable to • There is evidence Defendants received a benefit. CR5:2821. Denied. CR5:2943 (Oct. 6, 2016 Order). retain by fraud, duress or undue advantage. CR4:2390-91. 18 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. Diane Crumley; Vital Weight Control, Inc.; and Harris County Title Search, Inc. (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of termination of First Street’s management Traditional agreements with its FECs. Denied as to claims Preemption (5/6/16 Joinder in challenging fees that were not incurred during that First Street’s 4/29/16 MSJ; See “Preemption Responses” from Page 16. period. CR3:1444 (July 8, 2016 Order). 8/1/16 MSJ). The renewed MSJ filed by Crumley, Vital Weight Control, 1SuppCR5:2537-38; and Harris County Title Search was granted in part to the CR4:2261-70. same extent as First Street’s motion was granted in the Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016 Order). Granted as to all claims except United’s money had and Civil Conspiracy, received claims for payments that United made after (3rd Amd. Pet.); August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On CR3:1363-64, Traditional March 23, 2017, United non-suited its remaining claims ¶¶ 78-81. Statute of Limitations (6/2/16 See “Fraud Responses” from Page 16. for money had and received for payments made after MSJ). 1SuppCR5:2669-89. August 28, 2013, and on July 11, 2017, the trial court signed an Order Dismissing Non-Suited claims. 2SuppCR:3. No-Evidence (8/1/16) Elements Challenged: Denied in part as to standing and as to United’s claims • There is evidence Defendants engaged in engaged in Lack of standing, meeting of for fraud, fraudulent nondisclosure, money had and unlawful overt acts and employed unlawful means in the minds on an unlawful received, unjust enrichment, and conspiracy. CR5:2943 furtherance of a conspiracy. CR5:2819. course of conduct; committing (Oct. 6, 2016 Order). one or more unlawful overt acts, and injury. CR4:2391. Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of Traditional termination of First Street’s management agreements with Aiding & Preemption (5/6/16 Joinder in its FECs. Denied as to claims challenging fees that were not Abetting, First Street’s 4/29/16 MSJ; incurred during that period. CR3:1444 (July 8, 2016 Order). (3rd Amd. Pet.); See “Preemption Responses” from Page 16. 8/1/16 MSJ). The renewed MSJ filed by Crumley, Vital Weight Control, CR3:1364, and Harris County Title Search was granted in part to the 1SuppCR5:2537-38; ¶¶ 82-85 same extent as First Street’s motion was granted in the CR4:2261-70. Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016 Order). 19 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. Diane Crumley; Vital Weight Control, Inc.; and Harris County Title Search, Inc. (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action No-Evidence (8/1/16) Elements Challenged: Aiding & Lack of standing, knowledge, Abetting intent to assist, provided • There is evidence Defendants schemed together and gave (cont’d), assistance or encouragement, each other assistance and encouragement in submitting bills Granted. CR5:2943 (Oct. 6, 2016 Order). (3rd Amd. Pet.); that said assistance or to United. CR5:2820. CR3:1364, encouragement was a ¶¶ 82-85 substantial factor in causing the tort. CR4:2391 Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of termination of First Street’s management Traditional agreements with its FECs. Denied as to claims Preemption (5/6/16 Joinder in challenging fees that were not incurred during that First Street’s 4/29/16 MSJ; Alter Ego / See “Preemption Responses” from Page 16. period. CR3:1444 (July 8, 2016 Order). 8/1/16 MSJ). Piercing, The renewed MSJ filed by Crumley, Vital Weight Control, 1SuppCR5:2537-38; (3rd Amd. Pet.); and Harris County Title Search was granted in part to the CR4:2261-70. CR3:1365-68, same extent as First Street’s motion was granted in the ¶¶ 86-94 Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016 Order). No-Evidence (8/1/16) • There is evidence that (1) that the companies are Ms. Elements Challenged: Crumley's alter ego, and (2) that Ms. Crumley used the Granted. CR5:2943 (Oct. 6, 2016 Order). Lack of standing, abuse of corporate fiction for an illegitimate purpose. CR5:2821-23. corporation, unity. CR4:2391. Granted as to United’s claims challenging facility fees that were incurred between November 10, 2011 and the date of termination of First Street’s management Declaratory agreements with its FECs. Denied as to claims Judgment, challenging fees that were not incurred during that Traditional (3rd Amd. Pet.); See “Preemption Responses” from Page 16. period. CR3:1444 (July 8, 2016 Order). Preemption CR1:818-19. CR3:1369-70, The renewed MSJ filed by Crumley, Vital Weight Control, ¶¶ 104-05. and Harris County Title Search was granted in part to the same extent as First Street’s motion was granted in the Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016 Order). 20 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. Tony Rotondo (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action “Fraud Responses” Granted as to all claims except United’s money had and • United’s fraud cause of action accrued when Defendants received claims for payments that United made after submitted and United paid the fraudulent bills that caused Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On United’s injuries. CR3:1473. Statute of Limitations and No March 23, 2017, United non-suited its remaining claims • Defendants’ fraudulent concealment raises a fact question. Reliance (7/1/16 Joinder in for money had and received for payments made after Fraud, CR3:1474-76. Crumley’s MSJ). CR3:1314-16. August 28, 2013, and on July 11, 2017, the trial court Fraudulent Non- • Conspiracy is a derivative of fraud and should thus have the signed an Order Dismissing Non-Suited claims. Disclosure same limitations period. CR3:1480-81. 2SuppCR:3. (3rd Amd. Pet.); • Justifiable reliance is a question of fact. CR3:1481-83. CR3:1360-62, “Preemption Responses” Granted as to United’s claims challenging facility fees ¶¶ 65-69 • United’s claims for Defendants’ fraud in the bills they Traditional that were incurred between November 10, 2011 and the submitted to United do not challenge any decision by CMS, Preemption (10/12/16 Joinder date of termination of First Street’s management and Texas law imposes its own requirements for exemption in First Street’s Preemption agreements with its FECs. Denied as to claims from licensure requirements. CR2:851-53. Motion). 1SuppCR9:4178-80. challenging fees that were not incurred during that • Even if preemption exists, it would not bar United’s claims period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211. that pre-date the “granting” of PBE status. CR2:856-57. Granted as to all claims except United’s money had and received claims for payments that United made after Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Statute of Limitations and No March 23, 2017, United non-suited its remaining claims See “Fraud Responses,” above (Page 21). Reliance (7/1/16 Joinder in for money had and received for payments made after Negligent Crumley’s MSJ). CR3:1314-16. August 28, 2013, and on July 11, 2017, the trial court Misrep., signed an Order Dismissing Non-Suited claims. (3rd Amd. Pet.); 2SuppCR:3. CR3:1362-63, Granted as to United’s claims challenging facility fees ¶¶ 70-72. Traditional that were incurred between November 10, 2011 and the Preemption (10/12/16 Joinder date of termination of First Street’s management See “Preemption Responses,” above (Page 21). in First Street’s Preemption agreements with its FECs. Denied as to claims Motion). 1SuppCR9:4178-80. challenging fees that were not incurred during that period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211. 21 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. Tony Rotondo (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action Granted as to all claims except United’s money had and received claims for payments that United made after Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Statute of Limitations (7/1/16 March 23, 2017, United non-suited its remaining claims See “Fraud Responses” from Page 21. Joinder in Crumley’s MSJ). for money had and received for payments made after Money Had & CR3:1314-16. August 28, 2013, and on July 11, 2017, the trial court Rec’d., signed an Order Dismissing Non-Suited claims. (3rd Amd. Pet.); 2SuppCR:3. CR3:1363, Granted as to United’s claims challenging facility fees ¶¶ 73-74. Traditional that were incurred between November 10, 2011 and the Preemption (10/12/16 Joinder date of termination of First Street’s management See “Preemption Responses” from Page 21. in First Street’s Preemption agreements with its FECs. Denied as to claims Motion). 1SuppCR9:4178-80. challenging fees that were not incurred during that period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211. Granted as to all claims except United’s money had and received claims for payments that United made after Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Statute of Limitations (7/1/16 March 23, 2017, United non-suited its remaining claims See “Fraud Responses” from Page 21. Joinder in Crumley’s MSJ). for money had and received for payments made after Unjust CR3:1314-16. August 28, 2013, and on July 11, 2017, the trial court Enrichment, signed an Order Dismissing Non-Suited claims. (3rd Amd. Pet.); 2SuppCR:3. CR3:1363, Granted as to United’s claims challenging facility fees ¶¶ 75-77. Traditional that were incurred between November 10, 2011 and the Preemption (10/12/16 Joinder date of termination of First Street’s management See “Preemption Responses” from Page 21. in First Street’s Preemption agreements with its FECs. Denied as to claims Motion). 1SuppCR9:4178-80. challenging fees that were not incurred during that period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211. 22 No. 01-17-00237-CV United Healthcare Servs., Inc., et al. v. First Street Hosp., et al. Tony Rotondo (1) Cause of (2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling Action Granted as to all claims except United’s money had and received claims for payments that United made after Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On Statute of Limitations (7/1/16 March 23, 2017, United non-suited its remaining claims See “Fraud Responses” from Page 21. Joinder in Crumley’s MSJ). for money had and received for payments made after Civil Conspiracy, CR3:1314-16. August 28, 2013, and on July 11, 2017, the trial court (3rd Amd. Pet.); signed an Order Dismissing Non-Suited claims. CR3:1363-64, 2SuppCR:3. ¶¶ 78-81. Granted as to United’s claims challenging facility fees Traditional that were incurred between November 10, 2011 and the Preemption (10/12/16 Joinder date of termination of First Street’s management See “Preemption Responses” from Page 21. in First Street’s Preemption agreements with its FECs. Denied as to claims Motion). 1SuppCR9:4178-80. challenging fees that were not incurred during that period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211. Granted as to United’s claims challenging facility fees Aiding & Traditional that were incurred between November 10, 2011 and the Abetting, Preemption (10/12/16 Joinder date of termination of First Street’s management (3rd Amd. Pet.); See “Preemption Responses” from Page 21. in First Street’s Preemption agreements with its FECs. Denied as to claims CR3:1364, Motion). 1SuppCR9:4178-80. challenging fees that were not incurred during that ¶¶ 82-85 period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211. Granted as to United’s claims challenging facility fees Declaratory that were incurred between November 10, 2011 and the Judgment, Traditional date of termination of First Street’s management (3rd Amd. Pet.); See “Preemption Responses” from Page 21. Preemption CR1:818-19. agreements with its FECs. Denied as to claims CR3:1369-70, challenging fees that were not incurred during that ¶¶ 104-05. period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211. 23