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Ninth Circuit Revives ERISA Claims Brought by Assignee of Healthcare Provider

In ABC Services Group, Inc. v. Aetna Health and Life Insurance Company; et al., No. 20-55821, 2022 WL 187849 (9th Cir. Jan. 20, 2022) (Before: Kleinfeld, R. Nelson, VanDyke, Circuit Judges), Plaintiff-Appellant ABC Services Group Inc., in its capacity as assignee for the benefit of creditors for Morningside Recovery, LLC, sued Aetna Health and Life Insurance Company for payment of benefits under ERISA, among other state law claims. The district court dismissed ABC’s ERISA claims after finding it lacked standing to bring its claims following the Ninth Circuit’s decision in Simon v. Value Behavior Health, Inc., 208 F.3d 1073, 1081 (9th Cir. 2000), overruled on other grounds by Odom v. Microsoft Corp., 486 F.3d 541, 551 (9th Cir. 2007). In a short unpublished opinion on the heels of its decision in Bristol SL Holdings, Inc. v. Cigna Health & Life Ins. Co., No. 20-56122, __F.4th__, 2022 WL 129139 (9th Cir. Jan. 14, 2022), where the court clarified its holding in Simon on the ability of an assignee to bring an ERISA cause of action, the court reversed the district court’s dismissal of ABC’s ERISA claims and remanded for further proceedings.

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