Sharp Health Plan v. HealthEdge Software, Inc.

United States District Court for the Southern District of California

Sharp Health Plan v. HealthEdge Software, Inc.

Trial Court Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 SOUTHERN DISTRICT OF CALIFORNIA 10 11 SHARP HEALTH PLAN, a California Case No.: 19-CV-983 JLS (JLB) nonprofit public benefit corporation, 12 ORDER RE: MARCH 25, 2020 JOINT Plaintiff, 13 STATUS REPORT AND ORDERING v. ADDITIONAL BRIEFING 14

HEALTHEDGE SOFTWARE, INC., a 15 (ECF No. 17) Delaware corporation; DOES 1 through 16 10, inclusive, 17 Defendants. 18 19 Presently before the Court is Plaintiff Sharp Health Plan and Defendant HealthEdge 20 Software, Inc.’s Joint Status Report (“Joint Rep.,” ECF No. 17), filed pursuant to the 21 Court’s June 24, 2019 Order Staying Action Pursuant to the First-to-File Rule, ECF No. 22 16. The Parties report that the Honorable Allison D. Burroughs of the United States District 23 Court for the District of Massachusetts denied Sharp’s motion to dismiss on jurisdictional 24 grounds in the first-filed action, HealthEdge Software, Inc. v. Sharp Health Plan, No. 1:19- 25 cv-11020-ADB (D. Mass. filed Apr. 30, 2019) (the “Massachusetts Action”). See Joint 26 Rep. at 2. Consequently, HealthEdge requests that this action be dismissed pursuant to the 27 first-to-file rule, see id., while Sharp requests that this action be stayed or transferred to 28 avoid any issues concerning the timeliness of its claims. See id. at 2–3. ] The Court has already determined that the first-to-file rule applies. See ECF No. 16 2 6. Given Judge Burroughs’ rejection of Sharp’s jurisdictional challenges to the 3 ||Massachusetts Action, the Court therefore has discretion to stay, transfer, or dismiss this 4 |laction. In re Bozic,

888 F.3d 1048, 1051-52

(9th Cir. 2018). Given Sharp’s concerns 5 || regarding the statute of limitations, see Joint Rep. at 2—3, the Court is disinclined to dismiss 6 || this action, see Alltrade, Inc. v. Uniweld Prod., Inc.,

946 F.2d 622, 625

(9th Cir. 1991), and 7 ||“[a] court may transfer an action under the first-to-file rule or

28 U.S.C. § 1404

either sua 8 || sponte, or upon motion of a party.” Lawyers Funding Grp., LLC v. Harris, No. CV 15- 9 1104059 MMM (EX),

2015 WL 13298145

, at *12 (C.D. Cal. Sept. 18, 2015). Nonetheless, 10 || the Court concludes that additional briefing is merited. 11 Accordingly, the Court ORDERS Sharp to file a supplemental brief, not to exceed 12 ||ten (lO) pages, addressing its preference for a stay or transfer to the District of 13 Massachusetts and the legal arguments supporting its preference on or before April 13, 14 |}2020. HealthEdge MAY FILE a response, not to exceed ten (10) pages, on or before 15 || April 20, 2020. Absent further Order of the Court, no replies shall be filed, and no oral 16 |} argument held. 17 IT IS SO ORDERED. 18 19 ||Dated: March 30, 2020 (een 0 on. Janis L. Sammartino United States District Judge 21 22 23 24 25 26 27 28

Reference

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