GEORGE Z. SINGAL, District Judge.
Before the Court are two motions filed by Plaintiffs Mark Lane ("Lane") and Advantage Senior Advisory Group, Inc. ("ASAG"): (1) the Motion for Preliminary Injunction (Docket # 4), which was filed on February 17, 2011, and (2) the Motion for Expedited Briefing and Hearing (Docket # 6), filed on February 23, 2011. To the extent the Court held a telephonic conference on these motions on February 24, 2011 and thereafter ordered Defendant to file a written response to the pending motions by 2 P.M. on February 24, 2011, the Court has GRANTED the Motion for Expedited Briefing and Hearing (Docket # 6). Having considered the parties' oral and written submissions, the Court hereby DENIES Plaintiffs' Motion for Preliminary Injunction (Docket # 4).
Plaintiffs' Motion for Preliminary Injunction seeks to stay all proceedings in a state enforcement petition captioned In re Mark Lane, Docket # INS-10-215 (hereinafter, the "Lane Petition" or "Petition").
An administrative hearing on this Amended Petition is scheduled to commence on Monday, February 28, 2011 at 8:30 A.M. Although Plaintiffs sought a continuance of this hearing after filing the pending Motion for Preliminary Injunction (Docket # 4), Defendant opposed that request. The hearing officer then denied the request on February 23, 2011. (See Order on Motion to Continue (Docket # 6-1).) Thus, Plaintiffs' immediate concern is that absent some Court intervention related to the pending motions, the administrative hearing will proceed on February 28, 2011.
In support of the request for a preliminary injunction, Plaintiffs indicate that the facts and issues in this case are substantially similar to Arcadian Health Plan, Inc. v. Korfman, Me. Docket # 1:10-cv-322. In this Arcadian case, the Magistrate Judge recommended, and this Court subsequently approved without objection, entry of a preliminary injunction that stayed state enforcement proceedings against Arcadian. See Arcadian Health Plan, Inc. v. Korfman, 2010 WL 5173624 (recommended decision), 2011 WL 22974 (affirming recommended decision).
The state enforcement petition against Arcadian, which was at the center of that case, alleged violations of the Maine Insurance Code based on the exact same March 2010 mailing at issue in the Lane Petition. Ultimately, in Arcadian, this Court found that the plaintiff insurer had a substantial likelihood of success on its argument that the 42 U.S.C. § 1395w-26(b)(3) expressly preempted Defendant's administrative action against the insurer and that the preemption was clear enough to avoid Younger abstention. See Arcadian, 2010 WL at *5-*8. The Court also found that the other preliminary injunction factors, i.e., irreparable injury, balance of harms, and public interest, favored Arcadian. See id. at *8-*9. Given the factual similarity between this case and Arcadian, Plaintiffs now argue that a similar injunction should enter in favor of Mark Lane to prevent the state from moving forward with the Lane Petition. As discussed below, despite the factual similarity, the Court concludes that Lane's legal status as a licensed Maine insurance producer distinguishes his claims and arguments from Arcadian, which is licensed as a Maine health maintenance organization and subject to federal regulation as a Medicare Advantage organization.
Plaintiffs, as the moving party, bear the burden of persuasion to show: "(1) the likelihood of success on the merits; (2) the potential for irreparable harm if the injunction is denied; (3) the balance of relevant impositions, i.e., the hardship to the nonmovant if enjoined as contrasted with the hardship to the movant if no
Simply put, Plaintiffs have not and cannot establish the same substantial likelihood of success that was found in Arcadian.
First, it is significantly more likely that the Lane Petition, which alleges violations of 24-A M.R.S.A. §§ 2152-B(2)(A) & 2154, invokes "state licensing laws" and/or state laws that do not respect "MA plans ... offered by MA organizations" under Part C. 42 U.S.C. § 1395w-26(b)(3). In the Court's preliminary assessment, this difference places the Lane Petition outside any express preemption contained in 42 U.S.C. § 1395w-26(b)(3).
Rather, the Court finds that there is a substantial likelihood that Defendant will establish the requirements for Younger abstention in this case. See Younger v. Harris, 401 U.S. 37, 45-47, 91 S.Ct. 746, 27 L.Ed.2d 669 (1971). "Under Younger, a federal court must abstain if (1) there is an ongoing state judicial proceeding involving the federal plaintiff that (2) implicates important state interests and (3) provides an adequate opportunity for the federal plaintiff to assert his federal claims." Colonial Life, 572 F.3d at 26 (citations and internal quotations omitted). The Lane Petition is undoubtedly an ongoing state judicial proceeding that was commenced prior to the filing of the Plaintiffs' Complaint. See,
As Plaintiffs admit in their Motion for Preliminary Injunction, likelihood of success on the merits is the "most important part of the preliminary injunction assessment" (Pls. Mot. for Preliminary Inj. (Docket # 4) at 6 (quoting Jean v. Mass. State Police, 492 F.3d 24, 27 (1st Cir. 2007)).) The Court concludes Plaintiffs do not have the requisite likelihood of success to warrant injunctive relief. In an abundance of caution, the Court briefly considers the remaining preliminary injunction factors, recognizing that the remaining factors are often deemed "matters of idle curiosity" if likelihood of success is not established. New Comm Wireless Servs., Inc. v. SprintCom, Inc., 287 F.3d 1, 9 (1st Cir.2002).
Even if likelihood of success is low, a court might consider injunctive relief based on a very significant showing of irreparable harm. See Ty, Inc. v. Jones Group, Inc., 237 F.3d 891, 895 (7th Cir. 2001) (explaining that the preliminary injunction "process involves engaging in ... the sliding scale approach; the more likely the plaintiff will succeed on the merits, the less the balance of irreparable harms need favor the plaintiff's position"). In this case, any harm Lane may face is, in fact, mitigated by his ability to present the arguments he seeks to present here in the context of the ongoing administrative proceeding. Under these circumstances, Lane's asserted harm to his reputation and license will only come to pass if he is unsuccessful on the merits of his preemption arguments.
The Court is also reluctant to find irreparable harm given the timing of Plaintiffs' request for injunctive relief. Plaintiffs have known about the state enforcement proceeding since June 2010 and sat on the sidelines as Arcadian, a co-respondent, presented the same arguments Plaintiffs now ask this Court to hear on an expedited basis. In short, Plaintiffs have not made a significant showing of irreparable harm.
Nonetheless, the Court notes that the balance of harms between Plaintiffs and Defendant is approximately equal. Defendant has already allowed this matter to be continued on multiple occasions and ultimately chose "not to object" to the Court's entry of a preliminary injunction as to co-respondent, Arcadian. (Def. Obj. (Docket # 8) at 7.) Under these circumstances, the Court does not believe an injunction that further delays proceedings on the Lane Petition would cause significant harm to Defendant.
In the absence of federal preemption (as was found by the Court in Arcadian),
In short, the Court concludes that Plaintiffs have not established a substantial likelihood of success or irreparable harm in the absence of an injunction. The Court also determines that in this case the balance of the harms is approximately equal and that the public interest weighs in favor of Defendant. Having given due consideration to all of the relevant factors, the Court hereby DENIES Plaintiffs' Motion for Preliminary Injunction (Docket # 4).
SO ORDERED.