Foley Secures Victory for MemorialCare Hospital in Class Action Dismissal

Foley & Lardner LLP successfully represented MemorialCare Long Beach Medical Center (MemorialCare LBMC) and Yoshida & Garcia, Inc. in securing the dismissal with prejudice of a putative class action that raised novel challenges to California’s Hospital Lien Act (HLA).

The plaintiff in this case attempted to invalidate the HLA wherever treatment is provided to Medi-Cal beneficiaries. Following a car accident, the plaintiff was treated at MemorialCare, and obtained a judgment against the tortfeasor and his insurer. MemorialCare LBMC notified the tortfeasor of its right to assert an HLA lien for reasonable and necessary charges related to the plaintiff’s medical treatment. In response, the plaintiff filed a class action, arguing that HLA liens should not be enforceable where treatment is provided to Medi-Cal beneficiaries and that enforcing such liens violated the Fair Debt Collection Practices Act (FDCPA) and related state laws.

After extensive briefing in both federal and state courts, Foley successfully argued that asserting an HLA lien does not constitute “debt collection” under the FDCPA, and that HLA liens remain enforceable even if the patient is a Medi-Cal beneficiary. Both courts issued well-reasoned rulings affirming the validity of the liens under California law and related legal principles.

The Foley team representing MemorialCare LBMC and Yoshida & Garcia, Inc. was led by partner Nick Gross and associate Emma Soldon.