65 F. Supp. 3d 588
N.D. Ill.2014Background
- Woodruff sues Humana Pharmacy in Cook County circuit court for negligent delay in filling and shipping mail-order prescription drugs, causing a stroke.
- Humana removes the case to federal court asserting Medicare preemption and federal-officer removal, and also asserts exhaustion arguments.
- Woodruff moves to remand, arguing her claim is not a claim for Medicare benefits and removal remains inappropriate.
- The court examines federal officer removal, finding Humana fails to show it acted under color of federal authority or had a causal connection to the alleged tort.
- The court addresses complete preemption, finding Humana waived that argument and, on the merits, removal under §1441 is not proper; remand granted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Humana may remove under federal officer removal. | Woodruff argues Humana fails to act under federal authority. | Humana contends it acts under CMS as a federal officer. | Removal under §1442(a) not proper. |
| Whether complete preemption allows removal under §1441. | Woodruff contends no complete preemption to support removal. | Humana argues Medicare preemption yields federal jurisdiction. | Removal under §1441 not proper; waiver defects noted. |
| Whether administrative exhaustion is jurisdictional and fatal to removal. | Woodruff asserts exhaustion not met; but not a Medicare benefits claim. | Humana maintains exhaustion required and jurisdictional. | Exhaustion is jurisdictional; not satisfied; removal improper. |
Key Cases Cited
- Ruppel v. CBS Corp., 701 F.3d 1176 (7th Cir.2012) (analyzes 'acting under' prong and private contractors under federal authority)
- Heckler v. Ringer, 466 U.S. 602 (1984) ( Medicare exhaustion and exclusive review pathway)
- Ardary v. Aetna Health Plans of California Inc., 98 F.3d 496 (9th Cir.1996) (wholly collateral Medicare claim not necessarily preempted)
- Pollitt v. Health Care Service Corp., 558 F.3d 615 (7th Cir.2009) (jurisdictional considerations in removal and hearing needs)
- Caterpillar Inc. v. Williams, 482 U.S. 386 (1987) (complete preemption framework and removal jurisdiction)
- Watson v. Philip Morris Cos., 551 U.S. 142 (2007) (private actions in highly regulated industries and federal immunity limits)
- Weinberger v. Salfi, 422 U.S. 749 (1975) (administrative exhaustion and jurisdictional framing for Medicare claims)