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Consejo de Salud Playa de Ponce v. Mellado

UNITED STATES DISTRICT COURT DISTRICT OF PUERTO RICO
Apr 7, 2021
533 F. Supp. 3d 57 (D.P.R. 2021)

Opinion

CIVIL NO. 06-1260 (GAG)

2021-04-07

CONSEJO DE SALUD PLAYA DE PONCE, Plaintiff, v. Carlos MELLADO, Sec'y of the Dep't of Health of the Commonwealth of P.R., Defendant.

Agustin Diaz-Garcia, Bufete Diaz Garcia, Abogados y Notarios, Ponce, PR, Charles A. Cuprill-Hernandez, Charles A. Cuprill PSC, Ignacio Fernandez-De-Lahongrais, Fernandez & Alcaraz, PSC, San Juan, PR, for Plaintiff Consejo de Salud Playa Ponce. Lourdes Martinez-Jimenez, Bufete Martinez-Jimenez PSC, Bayamon, PR, James L. Feldesman, PHV, Pro Hac Vice, Nicole M. Bacon, PHV, Pro Hac Vice, Feldesman, Tucker, Leifer, Fidell LLP, Robert A. Graham, Pro Hac Vice, Reno & Cavanaugh, PLLC, Washington, DC, Luis Alberto Alvarez-Vazquez, Despacho Legal Luis Alberto Alvarez vazquez, Miguel J. Rodriguez-Marxuach, Rodriguez Marxuach, P.S.C., San Juan, PR, for Plaintiffs Gurabo Community Health Center, Inc., Migrant Health Center, Inc., Atlantic Medical Center, Inc., Camuy Health Services, Inc., Centro de Salud Familiar Dr. Julio Palmieri Ferri, Inc., Ciales Primary Health Care Services, Inc., Corp. de Serv. Medicos Primarios Y. Prevencion de Hatillo, Inc., Corp. de Servicios de Salud y Medicina Avanzada, Inc., Corp. de Servicios Integrales de Salud Integral de la Montana, Inc., El Centro de Servicios Primarios de Salud de Patillas, Inc., Hospital General Castanar, Inc., Morovis Community Health Center, Inc., Costa Salud, Inc. Ignacio Fernandez-De-Lahongrais, Fernandez & Alcaraz, PSC, San Juan, PR, James L. Feldesman, PHV, Pro Hac Vice, Feldesman, Tucker, Leifer, Fidell LLP, Robert A. Graham, Pro Hac Vice, Reno & Cavanaugh, PLLC, Washington, DC, for Plaintiffs Toa Alta Comprehensive Urban/Rural Advanced Health Services, Inc., Rio Grande Community Health Center, Inc. Lourdes Martinez-Jimenez, Bufete Martinez-Jimenez PSC, Bayamon, PR, James L. Feldesman, PHV, Pro Hac Vice, Nicole M. Bacon, PHV, Feldesman, Tucker, Leifer, Fidell LLP, Robert A. Graham, Pro Hac Vice, Reno & Cavanaugh, PLLC, Washington, DC, Luis Alberto Alvarez-Vazquez, Despacho Legal Luis Alberto Alvarez vazquez, Miguel J. Rodriguez-Marxuach, Rodriguez Marxuach, P.S.C., San Juan, PR, for Plaintiff El Centro de Salud de Lares, Inc. Ignacio Fernandez-De-Lahongrais, Fernandez & Alcaraz, PSC, Luis Alberto Alvarez-Vazquez, Despacho Legal Luis Alberto Alvarez vazquez, Miguel J. Rodriguez-Marxuach, Rodriguez Marxuach, P.S.C., San Juan, PR, Lourdes Martinez-Jimenez, Bufete Martinez-Jimenez PSC, Bayamon, PR, James L. Feldesman, PHV, Pro Hac Vice, Nicole M. Bacon, PHV, Pro Hac Vice, Feldesman, Tucker, Leifer, Fidell LLP, Robert A. Graham, Pro Hac Vice, Reno & Cavanaugh, PLLC, Washington, DC, for Plaintiff Concilio de Salud Integral de Loiza, Inc. (CSILO). Robert A. Graham, Pro Hac Vice, Reno & Cavanaugh, PLLC, Nicole M. Bacon, PHV, Pro Hac Vice, Feldesman Tucker Leifer Fidell LLP, Washington, DC, Lourdes Martinez-Jimenez, Bufete Martinez-Jimenez PSC, Bayamon, PR, Luis Alberto Alvarez-Vazquez, Despacho Legal Luis Alberto Alvarez vazquez, Miguel J. Rodriguez-Marxuach, Rodriguez Marxuach, P.S.C., San Juan, PR, for Plaintiff Dr. Jose S. Belaval, Inc. Katiuska Bolanos-Lugo, Diaz & Vazquez Law Firm, PSC, Michel Mir-Martinez, San Juan, PR, Sheila J. Torres-Delgado, Aldarondo & Lopez Bras, Guaynabo, PR, for Defendant Lorenzo Gonzalez-Feliciano. Katiuska Bolanos-Lugo, Diaz & Vazquez Law Firm, PSC, Michel Mir-Martinez, San Juan, PR, Sheila J. Torres-Delgado, Aldarondo & Lopez Bras, PSC, Guaynabo, PR, for Defendant The Commonwealth of Puerto Rico. Sheila J. Torres-Delgado, Aldarondo & Lopez Bras, PSC, Guaynabo, PR, for Defendant Department of Health of Commonwealth of Puerto Rico. Jose M. Pizarro-Zayas, San Juan, PR, for Defendants US Department of Health & Human Services, Michael Leavitt.


Agustin Diaz-Garcia, Bufete Diaz Garcia, Abogados y Notarios, Ponce, PR, Charles A. Cuprill-Hernandez, Charles A. Cuprill PSC, Ignacio Fernandez-De-Lahongrais, Fernandez & Alcaraz, PSC, San Juan, PR, for Plaintiff Consejo de Salud Playa Ponce.

Lourdes Martinez-Jimenez, Bufete Martinez-Jimenez PSC, Bayamon, PR, James L. Feldesman, PHV, Pro Hac Vice, Nicole M. Bacon, PHV, Pro Hac Vice, Feldesman, Tucker, Leifer, Fidell LLP, Robert A. Graham, Pro Hac Vice, Reno & Cavanaugh, PLLC, Washington, DC, Luis Alberto Alvarez-Vazquez, Despacho Legal Luis Alberto Alvarez vazquez, Miguel J. Rodriguez-Marxuach, Rodriguez Marxuach, P.S.C., San Juan, PR, for Plaintiffs Gurabo Community Health Center, Inc., Migrant Health Center, Inc., Atlantic Medical Center, Inc., Camuy Health Services, Inc., Centro de Salud Familiar Dr. Julio Palmieri Ferri, Inc., Ciales Primary Health Care Services, Inc., Corp. de Serv. Medicos Primarios Y. Prevencion de Hatillo, Inc., Corp. de Servicios de Salud y Medicina Avanzada, Inc., Corp. de Servicios Integrales de Salud Integral de la Montana, Inc., El Centro de Servicios Primarios de Salud de Patillas, Inc., Hospital General Castanar, Inc., Morovis Community Health Center, Inc., Costa Salud, Inc.

Ignacio Fernandez-De-Lahongrais, Fernandez & Alcaraz, PSC, San Juan, PR, James L. Feldesman, PHV, Pro Hac Vice, Feldesman, Tucker, Leifer, Fidell LLP, Robert A. Graham, Pro Hac Vice, Reno & Cavanaugh, PLLC, Washington, DC, for Plaintiffs Toa Alta Comprehensive Urban/Rural Advanced Health Services, Inc., Rio Grande Community Health Center, Inc.

Lourdes Martinez-Jimenez, Bufete Martinez-Jimenez PSC, Bayamon, PR, James L. Feldesman, PHV, Pro Hac Vice, Nicole M. Bacon, PHV, Feldesman, Tucker, Leifer, Fidell LLP, Robert A. Graham, Pro Hac Vice, Reno & Cavanaugh, PLLC, Washington, DC, Luis Alberto Alvarez-Vazquez, Despacho Legal Luis Alberto Alvarez vazquez, Miguel J. Rodriguez-Marxuach, Rodriguez Marxuach, P.S.C., San Juan, PR, for Plaintiff El Centro de Salud de Lares, Inc.

Ignacio Fernandez-De-Lahongrais, Fernandez & Alcaraz, PSC, Luis Alberto Alvarez-Vazquez, Despacho Legal Luis Alberto Alvarez vazquez, Miguel J. Rodriguez-Marxuach, Rodriguez Marxuach, P.S.C., San Juan, PR, Lourdes Martinez-Jimenez, Bufete Martinez-Jimenez PSC, Bayamon, PR, James L. Feldesman, PHV, Pro Hac Vice, Nicole M. Bacon, PHV, Pro Hac Vice, Feldesman, Tucker, Leifer, Fidell LLP, Robert A. Graham, Pro Hac Vice, Reno & Cavanaugh, PLLC, Washington, DC, for Plaintiff Concilio de Salud Integral de Loiza, Inc. (CSILO).

Robert A. Graham, Pro Hac Vice, Reno & Cavanaugh, PLLC, Nicole M. Bacon, PHV, Pro Hac Vice, Feldesman Tucker Leifer Fidell LLP, Washington, DC, Lourdes Martinez-Jimenez, Bufete Martinez-Jimenez PSC, Bayamon, PR, Luis Alberto Alvarez-Vazquez, Despacho Legal Luis Alberto Alvarez vazquez, Miguel J. Rodriguez-Marxuach, Rodriguez Marxuach, P.S.C., San Juan, PR, for Plaintiff Dr. Jose S. Belaval, Inc.

Katiuska Bolanos-Lugo, Diaz & Vazquez Law Firm, PSC, Michel Mir-Martinez, San Juan, PR, Sheila J. Torres-Delgado, Aldarondo & Lopez Bras, Guaynabo, PR, for Defendant Lorenzo Gonzalez-Feliciano.

Katiuska Bolanos-Lugo, Diaz & Vazquez Law Firm, PSC, Michel Mir-Martinez, San Juan, PR, Sheila J. Torres-Delgado, Aldarondo & Lopez Bras, PSC, Guaynabo, PR, for Defendant The Commonwealth of Puerto Rico.

Sheila J. Torres-Delgado, Aldarondo & Lopez Bras, PSC, Guaynabo, PR, for Defendant Department of Health of Commonwealth of Puerto Rico.

Jose M. Pizarro-Zayas, San Juan, PR, for Defendants US Department of Health & Human Services, Michael Leavitt.

MEMORANDUM ORDER

GUSTAVO A. GELPI, United States District Judge The Court GRANTS Plaintiff's motion requesting an extension of the Court's enforcement jurisdiction and NOTES the simultaneous informative motion regarding the appeal filed with the special master at Docket No. 1445. The Court hereby extends its enforcement jurisdiction for a term of three (3) years until October 6, 2024, after the current enforcement jurisdiction expires on October 6, 2021. The history of this litigation demonstrates that if the Court does not retain enforcement jurisdiction, then the result is evident: Plaintiff will cease to receive the Medicaid wraparound payments and would have to file a new lawsuit.

In addition, the Court NOTES Defendant's motion in compliance at Docket No. 1450 responding to Plaintiff's motion requesting extension of enforcement jurisdiction. With leave of Court, Plaintiff replied and Defendant sur-replied. (Docket Nos. 1455, 1459).

On October 7, 2011, the Court approved the confidential settlement agreement ("CSA") between the parties whereby Defendant would pay Plaintiff for the amounts stipulated in the CSA as satisfaction of Defendant's Medicaid wraparound payment obligations under 42 U.S.C. § 1396a(bb). (Docket Nos. 987, 989). The Court dismissed the case with prejudice pursuant to FED. R. CIV. P. 60(b)(6) as well as the CSA and retained jurisdiction to enforce the CSA pursuant to Kokkonen v. Guardian Life Ins. Co. of Am., 511 U.S. 375, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994). (Docket Nos. 987, 989, 990). In Kokkonen, the Supreme Court held that federal courts are "authorized to embody the settlement contract in its dismissal order or, what has the same effect, retain jurisdiction over the settlement contract [sic] if the parties agree. Absent such action, however, enforcement of the settlement agreement is for state courts, unless there is some independent basis for federal jurisdiction." 511 U.S. at 381-82, 114 S.Ct. 1673. A federal court may exercise its ancillary jurisdiction to enforce a settlement agreement after it dismissed a case:

if the parties’ obligation to comply with the terms of the settlement agreement had been made part of the order of dismissal—either by separate provision (such as a provision "retaining jurisdiction" over the settlement agreement) or by incorporating the terms of the settlement agreement in the order. In that event, a breach of the agreement would be a violation of the order, and ancillary jurisdiction to enforce the agreement would therefore exist.

Kokkonen, 511 U.S. at 381, 114 S.Ct. 1673.

Here, the dismissal order contained a provision retaining jurisdiction over the CSA and specifically incorporated its terms. (Docket No. 989). Furthermore, in the CSA, the parties agreed that the Court shall retain jurisdiction to enforce its terms "for a period to be determined by the Court (the ‘Retention Period’)." (Docket No. 987-2 at 12). While the parties originally agreed for the Court to retain enforcement jurisdiction for a retention period of four (4) years according to the dismissal order that they themselves proposed, the Court has extended its enforcement jurisdiction twice before because of the multiple times that Plaintiff has been forced to seek the Court's intervention to make Defendant comply with its Medicaid wraparound obligations. (Docket Nos. 989 ¶ 5, 1279, 1442; 1272, 1191, 1180, 1169, 1154, 1130). The docket evidences that the Defendant has a continued pattern of delayed payments and, as such, demonstrates the extraordinary circumstances that justify the amendment of the Court's enforcement jurisdiction pursuant to FED. R. CIV. P. 60(b)(6). Consequently, the Court shall extend its enforcement jurisdiction of the CSA until October 6, 2024. This ruling is without prejudice that the Secretary of Health demonstrate to the Court the contrary, and ask that enforcement end.

SO ORDERED.


Summaries of

Consejo de Salud Playa de Ponce v. Mellado

UNITED STATES DISTRICT COURT DISTRICT OF PUERTO RICO
Apr 7, 2021
533 F. Supp. 3d 57 (D.P.R. 2021)
Case details for

Consejo de Salud Playa de Ponce v. Mellado

Case Details

Full title:CONSEJO DE SALUD PLAYA DE PONCE, Plaintiff, v. CARLOS MELLADO, SEC'Y OF…

Court:UNITED STATES DISTRICT COURT DISTRICT OF PUERTO RICO

Date published: Apr 7, 2021

Citations

533 F. Supp. 3d 57 (D.P.R. 2021)

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