National Blue Cross/Blue Shield Withdraws Motion To Dismiss Regarding Improper Venue in ACA Suit

The American Chiropractic Association's lawsuit against Trigon Blue Cross/Blue Shield and the national Blue Cross/Blue Shield Association continued to move forward on Jan. 17, when the national Blue Cross/Blue Shield Association withdrew its motion to dismiss the case on the question of improper venue.

On Dec. 20, 2000, in the federal district court in Abingdon, Va., the national Blue Cross/Blue Shield Association argued its motion to dismiss the case, stating that the court in Abingdon was not the proper venue for the case to be heard. The association said at that time that it does no business in the Western Virginia district, nor does it have any business contacts there. But the national Blue Cross/Blue Shield Association's legal counsel recently contacted ACA attorney George McAndrews and acknowledged that Blue Cross/Blue Shield had discovered documents indicating that the company does do business in the district, and that they were withdrawing their motion to dismiss the case on the basis of improper venue.

Blue Cross/Blue Shield's decision to withdraw its dismissal motion came the day before the ACA's deposition of Blue Cross/Blue Shield was scheduled to take place. At the December 20 hearing, Judge James Jones ordered the deposition, during which McAndrews and the ACA could glean, from a selected Blue Cross/Blue Shield representative, information regarding any dealings the company had in the district.

"With the issue of proper venue now resolved, we will forge ahead with our case," McAndrews said.

Although the national Blue Cross/Blue Shield Association is expected to file a new motion to dismiss the case, the ACA plans to argue that the national Blue Cross/Blue Shield Association has essentially exhausted its right to file such motions and must now answer the ACA's complaint.

In a letter to Blue Cross/Blue Shield legal counsel James W. Rankin, McAndrews stated, "This second motion would not be timely until after the pleadings are closed in this matter."

In August 2000, the ACA, the Virginia Chiropractic Association (VCA), five chiropractors, and 18 chiropractic patients filed suit against Trigon and the national Blue Cross/Blue Shield Association, claiming allegations against Trigon of conspiracy, racketeering, extortion, mail fraud and antitrust violations. The suit also seeks to invalidate the Blue Cross/Blue Shield trademark because of the alleged counts of antitrust and conspiracy.

The impact of this lawsuit on the managed-care industry could be far-reaching, with national significance beyond just Trigon and the Blue Cross/Blue Shield Association. According to the ACA, many Blue Cross/Blue Shield plans and other insurers have adopted policies that single out doctors of chiropractic for special discriminatory treatment. The lawsuit draws into question the legality of this special treatment, drawing upon federal antitrust, trademark and RICO statutes, as well as state statutes and common law.

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