Third Circuit Says COVID-19 Negligence Action Against Nursing Home Belongs in State Court
- February 23, 2024
Four personal injury lawsuits against a New Jersey nursing home brought by the estates of residents who died after contracting COVID-19 should be remanded to state court, the Third Circuit confirmed February 16.
The Third Circuit affirmed remand orders in the four consolidated actions brought against Alliance HC II LLC and related entities by the estates of Alexander Olin, Elizabeth Iannuzzelli, John Fiore, and John Watters, former residents of the New Jersey nursing home who contracted COVID-19 and died.
The actions were brought in state court alleging statutory violations, medical malpractice, negligence, and gross negligence for failing to properly use and sanitize personal protective equipment and to provide adequate medical care. Alliance appealed after its attempts to remove the actions to federal court failed.
Citing its 2021 opinion in Estate of Maglioli v. Alliance HC Holdings LLC, 16 F.4th 393, the Third Circuit said Alliance could not sidestep the holding in that case that the Public Readiness and Emergency Preparedness Act (PREP Act) did not preempt “garden-variety” state law negligence claims, nor did the federal-officer removal statute confer subject matter jurisdiction.
As to the PREP Act, Alliance argued that the estates pleaded “allegations of willful misconduct” resulting in complete preemption of the state law claims. Although the PREP Act creates an exclusive cause of action for willful misconduct, the appeals court found the estates alleged only negligence claims.
“Like the District Court, we cannot infer from vague and imprecise references to ‘intentional’ or ‘conscious’ conduct that the Estates’ complaints alleged that Alliance had acted ‘intentionally to achieve a wrongful purpose’ or ‘knowingly without legal or factual justification,’” the Third Circuit said.
The Third Circuit also found the federal-officer removal statute did not provide subject matter jurisdiction for the same reason articulated in Maglioli—that merely complying with federal laws and regulations does not amount to “acting under” a federal officer.
Finally, the appeals court found the estates’ claims did not raise a substantial federal issue permitting removal.
Le Carre v. Alliance HC II LLC, No. 22-2515 (3d Cir. Feb. 16, 2024).