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Associated Medical Networks3/31/2005
On Petition To Transfer from the Indiana Court of Appeals, No. 49A05- 0203-CV-122
This appeal challenges the trial court's determination that the predominance and superiority requirements of Indiana Trial Rule 23(B)(3) were satisfied for purposes of maintaining a class action. Concluding that predominance was not established, we reverse the class certification.
The plaintiffs, Dr. William R. Lewis, Dr. Darryl Fortson, and Wabash Avenue Medical Center (collectively, "the Providers"), brought this action to compel the defendants, Associated Medical Networks, Ltd., Associated Insurance Companies, Inc., and Anthem Health Systems, Inc. (collectively, "Anthem"), for payment of medical expenses under assignments executed by patients, and for certification as a class to proceed on behalf of all other similarly situated health care providers.
The class certification was preceded by rather extensive litigation in both the state and federal courts, as more fully described in the opinion of the Court of Appeals. This interlocutory appeal is based on the trial court's Order Certifying Plaintiff Class, which made the following findings with respect to T.R. 23(B)(3), the focus of this appeal:
The elements of Rule 23(B)(3) are satisfied in the present matter because common questions predominate over individual ones and a class action is superior to other available methods for the fair and efficient adjudication of this controversy. The Court notes that individual class members do not appear to wish to control the prosecution of separate actions, that no other litigation concerning this controversy has been commenced, that it is desirable to concentrate this litigation in a single forum, and that no difficulties are likely to be encountered in the management of this action as a class action. Defendants' common course of conduct in paying patients of non-Network health care providers directly is a predominant factual and legal issue.
Appellants' Appendix at 15. The court then defined and certified the following plaintiff class:
Any and all health care providers in the State of Indiana, who have ever had restrictions placed on their license to practice medicine by the Health Professions Bureau, including their professional associations, corporations, partnerships, associates, and partners, or who, for any reason, were not preferred health care providers or network providers, and to which Defendants and their predecessors failed to forward checks for medical services rendered to patients insured by Defendants or their predecessors (under health insurance contracts which are not governed by ERISA or which are specifically exempted from ERISA pursuant to 29 U.S.C. sec. 1003 ) directly to the health care provider, or otherwise include said health care provider as a payee on said checks, and who were damaged thereby.
Id. at 15-16 (footnote added). Anthem sought and received permission from the trial court and the Court of Appeals to bring this interlocutory appeal of the class certification order. The Court of Appeals affirmed the class certification. Assoc. Med. Networks Ltd. v. Lewis, 785 N.E.2d 230 (Ind. Ct. App. 2003). We granted transfer. 804 N.E.2d 752 (Ind. 2003).
As its sole contention in this interlocutory appeal, Anthem asserts that the trial court erroneously found that the Providers satisfied the "predominance" and "superiority" requirements of T.R. 23(B)(3). The relevant language of T.R. 23(B) provides:
(B) Class actions maintainable. An action may be maintained as a class action if the prerequisites of subdivision (A) are satisfied, and in addition:
(1) * * *
(2) * * *; or
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