United States of America v. Sutter Health

Background

This is a qui tam action, meaning a private person brings a case in the government’s name, alleging violations of the federal and California False Claims Acts. Judy Jones, the plaintiff-relator, began the case without a lawyer on April 4, 2018. Barry Himmelstein later appeared as her counsel, and Jones filed a First Amended Complaint on October 19, 2018.

The opinion concerns case-management matters, not whether the defendants violated the False Claims Acts. The federal and state governments had declined to intervene. The opinion also states that Jones had previously sued the same defendants, except Sutter Health and Sutter Bay Medical Foundation, in a California state-court action involving personal injury and medical malpractice. That case was dismissed in November 2017; Jones represented that the dismissal was without prejudice.

Motion to withdraw

Himmelstein moved for permission to withdraw. He stated that Jones had discharged him in March 2019 and that he delayed filing the motion to give her time to obtain new counsel. Jones disputed that account. She said she had not discharged Himmelstein and wanted him to continue representing her. She also said that Himmelstein wanted to end the representation because the governments had declined to intervene and he lacked the resources to litigate without government intervention. Himmelstein said the governments’ decisions did not affect his motion and that performing tasks Jones requested would conflict with his professional ethical obligations.

The court said it did not need to decide whose account was accurate. It found a breakdown in the attorney-client relationship that meant the representation could not continue. The court granted Himmelstein’s motion for an order permitting withdrawal and ordered him to deliver the entire case file to Jones by October 7, 2019.

Jones requested 30 days to obtain new counsel. The court stated that she could obtain counsel at any time but had to proceed without a lawyer in the interim. The court referred her to Kevin Knestrick of the Federal Pro Se Program and encouraged her to seek new counsel or make an appointment with Knestrick.

Service and case-management conference

The court ordered Jones to serve the First Amended Complaint and summons on the defendants. It set an initial case-management conference for January 8, 2020, at 2:00 p.m., and ordered the parties to file a joint case-management-conference statement by January 1, 2020.

Discovery stay

The court noted that the First Amended Complaint included material from the earlier state-court litigation, including deposition testimony, deposition transcripts, and special-interrogatory requests and responses. Himmelstein also represented that Jones had obtained medical-billing data for this case through discovery in that litigation. The court stayed discovery in this case until further order.

Disposition

The court granted Himmelstein’s motion to withdraw, ordered Jones to serve the First Amended Complaint and summons, set the case-management deadlines and conference, and stayed discovery until further order. The opinion did not decide the False Claims Act allegations.