X hits on this document

61 views

0 shares

0 downloads

0 comments

14 / 20

that, at most, State Farm asserts the existence of an incentive structure through which

unidentified persons received some benefit for furthering counterclaim-defendants’ insurance

fraud scheme. However, State Farm does not plead facts to describe the nature or type of

incentives used or to whom such incentives were given. Moreover, in Count II, State Farm does

not even identify with sufficient clarity which of the counterclaim-defendants had a role in

paying the proscribed kickbacks. Instead, State Farm alleges that “[e]ach Counterclaim

Defendant, or in the alternative many” of the counterclaim-defendants participated in paying

kickbacks. Overall, State Farm leaves too many holes for counterclaim-defendants to fill. Such

imprecise pleading does not satisfy the requisite pleading standard, and I will grant counterclaim-

defendants’ motion to dismiss Count II to the extent that State Farm invokes § 4117(b).

In summary, I find that State Farm has sufficiently pleaded claims under only § 4117(a)

and only as to those reimbursement requests itemized in paragraphs nineteen or twenty-five or

both. I will deny counterclaim-defendants’ motion to dismiss this portion of Count II, but will

grant their motion with respect to the balance of Count II.

3.

Count III: Unjust Enrichment

Counterclaim-defendants argue that State Farm’s unjust enrichment claim (Count III) is

premised on mistake of fact, and therefore is subject to Rule 9(b). Again, State Farm does not

contest the applicability of Rule 9(b); rather, State Farm asserts that it has pleaded facts sufficient

to survive a Rule 9(b) challenge.

Rule 9(b) applies to allegations of fraud and allegations of mistake. See Swierkiewicz v.

Sorema N.A., 534 U.S. 506, 513 (2002) (reminding that Rule 9(b) applies in “all averments of

fraud or mistake”). In Count III, State Farm avers that it reimbursed counterclaim-defendants

14

Document info
Document views61
Page views61
Page last viewedSun Dec 04 15:29:38 UTC 2016
Pages20
Paragraphs418
Words5403

Comments