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State Farm Mut. Ins. Co. v. Elite Health Ctrs., Inc.

United States District Court for the Eastern District of Michigan, Southern Division

May 31, 2017, Decided; May 31, 2017, Filed

Case No. 16-13040

Opinion

OPINION & ORDER DENYING DEFENDANT'S MOTION TO DISMISS

Plaintiff State Farm Mutual Automobile Insurance Company ("State Farm") brings this action against 18 defendants. Specifically, State Farm claims that Defendants have submitted fraudulent claims to the insurer under Michigan's No-Fault Automobile Act. State Farm's complaint alleges several claims of common law fraud, civil conspiracy and unjust enrichment, and a count for declaratory judgment.

Currently before the Court is Defendant Chintan Desai's "Motion to Dismiss the Complaint for Failure to Join a Necessary Party and Failure to State a Claim." (Doc. # 58, Def.'s Mo."). Defendant brings his motion pursuant to Rules 9(b), 12(b)(6), 12(b)(7) and 19 of the Federal Rules of Civil Procedure. In his motion, Defendant advances two main arguments. First, Defendant argues that Plaintiff's complaint should be dismissed because State Farm failed to join Horizon Imaging, LLC. Defendant claims that Horizon is a necessary and indispensable party pursuant to Federal Rule of Civil Procedure 19. Defendant alternatively argues that the complaint's common law fraud, civil conspiracy, and unjust enrichment claims fail to state a claim upon which relief could be granted.

Defendant's motion has been fully briefed. The Court finds that oral argument would [*3]  not significantly aid in the decisional process and therefore orders that the instant motion will be decided upon the briefs. See E.D. Mich. LR 7.1(f). For the reasons that follow, the Court shall DENY Defendant's motion.

BACKGROUND

A. Factual Background

Plaintiff State Farm is a corporation that engages in the business of insurance in Michigan. Plaintiff brings this action against 18 defendants, all of which played a role in an alleged scheme to defraud the insurer.

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2017 U.S. Dist. LEXIS 82736 *; 2017 WL 2351744

State Farm Mutual Ins. Co., Plaintiff, v. Elite Health Centers, Inc., et. al., Defendants.

Prior History: State Farm Mut. Ins. Co. v. Elite Health Ctrs., Inc., 2017 U.S. Dist. LEXIS 30826 ( E.D. Mich., Mar. 6, 2017)

CORE TERMS

allegations, fraudulent, Entities, argues, civil conspiracy, physical therapy, patients, unjust enrichment, bills, joint tort feasor, necessary party, join, common law fraud, chiropractor, tortfeasor, indispensable, declaratory, insurer, medically necessary, complete relief, alleged scheme, Federal Rule, chiropractic, conspiracy, non-profit, licensed, Reply, motion to dismiss, fraud claim, misrepresentation