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Court of Appeal:
Justice Moore Says State Farm May Sue Under Insurance Fraud Protection Act Where Defendants Are Already Being Sued by Allstate to the Extent Claims Cover Different Patients or Different Types of Services
By a MetNews Staff Writer
The “first-to-file rule” that bars a private attorney general action against an alleged insurance fraudster who is already facing such a lawsuit does not preclude a second plaintiff from suing that same defendant for fraudulent billings that are not covered by the original action, Div. Four of the Fourth District Court of Appeal declared yesterday in a case of first impression.
Justice Eileen Moore authored the opinion which reverses a judgment of dismissal of State Farm’s action under the Insurance Fraud Protection Act (“IFPA”) against Newport Beach pain specialist Dr. Sonny Rubin and Sonny Rubin M.D., Inc., which handles billings, and Newport Institute of Minimally Invasive Surgery, owned and controlled by Rubin. The dismissal followed Orange Superior Court Judge William D. Caster’s sustaining of a demurrer without leave to amend.
State Farm can’t maintain an action against Rubin and his outfits, Caster ruled, because Allstate is already suing him in a qui tam action (under which a private party, as a “relator,” sues on behalf of the state, receiving a portion of any penalties that are assessed).
Limit to Preclusion
But, Moore said, Allstate is only suing for allegedly false billings to itself, while State Farm is...
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