Facts

Stanford Health Care is a nonprofit corporation that operates the Stanford Hospital in Palo Alto. Between January 2020 and June 2021, Stanford Health treated patients who were part of health insurance plans sponsored by The Chefs' Warehouse and administered by Trustmark Health Benefits. In May 2022, Stanford Health filed suit against Chefs' Warehouse and Trustmark in Santa Clara County, seeking to recover $513,760.25 for the underpayment of services provided to the beneficiaries of their health insurance plans. Trustmark later removed the case to federal court.

PLAINTIFF'S CONTENTIONS: First, plaintiff contended that defendants breached an implied-in-fact contract. According to plaintiff, plaintiff contacted defendant each time one of their beneficiaries would seek treatment, defendants verified each patient's membership in the health plan, and when the patients were discharged, plaintiff would submit the treatments' costs to defendants. Second, plaintiff argued that in providing medical services, defendants benefitted from plaintiff's treatment to their beneficiaries, and therefore, plaintiff raised a quantum meruit claim.

DEFENDANTS' CONTENTIONS: Defendants argued, among others, that plaintiff failed to adequately plead facts evidencing the formation of an implied contract, let alone, breach. Moreover, defendants also contended that plaintiff's quantum meruit theory was unviable.

Result

The court granted defendant's motion to dismiss.