United Healthcare Services, Inc., United Healthcare Insurance Company, United Heathcare Benefits of Texas, Inc. and United Healthcare of Texas, Inc. v. Hortencia Luna Gonzales and River Oaks Emergency Center, LLC, St Michael's Emergency Center LLC, the Woodlands FEC LLC, Brian Orsak and Shannon Orsak, Jacob Varon, First Street Hospital LP, First Surgical LLC and First Surgical Partners Holding Inc.

No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

First Street Hospital, LP; First Surgical Partners, LLC; First Surgical Partner Holdings, Inc.; and Jacob Varon
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action FILED IN
Granted as to 1st COURT
United’s OFchallenging
claims APPEALS facility fees that
“Preemption Responses”: HOUSTON,
were incurred between November TEXAS
10, 2011 and the date
Traditional • United’s claims for Defendants’ fraud in the bills they of termination3/20/2018 4:05:43
of First Street’s PM
management agreements
Preemption (4/29/16 MSJ; submitted to United do not challenge any decision by CMS, with its FECs. Denied as to claims challenging fees that
CHRISTOPHER A. PRINE
Varon’s Renewed MSJ and Texas law imposes its own requirements for exemption were not incurred during that period. CR3:1444 (July 8,
Clerk
(8/1/16)). CR1:794-821; from licensure requirements. CR2:851-53. 2016 Order).
1SuppCR6:2859-67. • Even if preemption exists, it would not bar United’s claims Varon’s Renewed MSJ granted in part to the same extent
that pre-date the “granting” of PBE status. CR2:856-57. as First Street’s motion was granted in the Court’s July 8,
2016 Order. CR5:2943-44.
“Fraud Responses”:
Granted as to all claims except United’s money had and
• United’s fraud cause of action accrued when Defendants
Traditional received claims for payments that United made after
Fraud, submitted and United paid the fraudulent bills that caused
Statute of Limitations and No August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Fraudulent Non- United’s injuries. CR3:1473.
Justifiable Reliance (6/16/16 March 23, 2017, United non-suited its remaining claims
Disclosure • Defendants’ fraudulent concealment raises a fact question.
Joinder in Crumley’s MSJ for money had and received for payments made after
(3rd Amd. Pet.); CR3:1474-76.
1SuppCR5:2669-89). August 28, 2013, and on July 11, 2017, the trial court
CR3:1360-62, • Conspiracy is a derivative of fraud and should thus have the
CR2:1061-78. signed an Order Dismissing Non-Suited claims.
¶¶ 65-69 same limitations period. CR3:1480-81.
2SuppCR:3.
• Justifiable reliance is a question of fact. CR3:1481-83.
No-Evidence (8/1/16).
CR4:2164-83 • There is evidence that Defendants falsely represented that
Elements Challenged: First Street was the provider on their bills. CR4:2601-04.
Misrepresentation, justifiable • Even though Dr. Varon never directly made any
reliance and injury. representations to United, he is liable for fraud as a party to a
Denied. CR5:2943 (Oct. 6, 2016 Order).
CR4:2168-78. fraudulent scheme. CR4:2604-05.
Traditional (8/1/16) • There is evidence that United justifiably relied on
CR4:2164-83 representations made by Defendants. CR4:2605-07.
Voluntary Payment Doctrine; • The voluntary payment rule does not apply. CR4:2607-08.
CR4:2179-80.

1
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

First Street Hospital, LP; First Surgical Partners, LLC; First Surgical Partner Holdings, Inc.; and Jacob Varon
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
Granted as to United’s claims challenging facility fees that
were incurred between November 10, 2011 and the date of
Traditional
termination of First Street’s management agreements with
Preemption (4/29/16 MSJ;
its FECs. Denied as to claims challenging fees that were not
Varon’s Renewed MSJ (8/1/16)). See “Preemption Responses” from Page 1.
incurred during that period. CR3:1444 (July 8, 2016 Order).
CR1:794-821;
Varon’s Renewed MSJ granted in part to the same extent as
1SuppCR6:2859-67.
First Street’s motion was granted in the Court’s’ July 8, 2016
Order. CR5:2943-44.
Traditional Granted as to all claims except United’s money had and
Negligent received claims for payments that United made after August
Misrep., Statute of Limitations and No 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On March 23,
(3rd Amd. Pet.); Justifiable Reliance (6/16/16 See “Fraud Responses” from Page 1. 2017, United non-suited its remaining claims for money had
CR3:1362-63, Joinder in Crumley’s MSJ and received for payments made after August 28, 2013, and
¶¶ 70-72. 1SuppCR5:2669-89). on July 11, 2017, the trial court signed an Order Dismissing
CR2:1061-78. Non-Suited claims. 2SuppCR:3.
No-Evidence (8/1/16).
Elements Challenged: • There is evidence that Defendants falsely represented that
Misrepresentation, justifiable First Street was the provider on their bills. CR4:2601-04.
reliance and injury. • There is evidence that United justifiably relied on
Denied. CR5:2943 (Oct. 6, 2016 Order).
CR4: 2168-78. representations made by Defendants. CR4:2605-07.
Traditional (8/1/16) • The voluntary payment rule does not apply. CR4:2607-08.
Voluntary Payment Doctrine
CR4:2179-80.

2
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

First Street Hospital, LP; First Surgical Partners, LLC; First Surgical Partner Holdings, Inc.; and Jacob Varon
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
Granted as to United’s claims challenging facility fees that
were incurred between November 10, 2011 and the date of
Traditional
termination of First Street’s management agreements with
Preemption (4/29/16 MSJ;
its FECs. Denied as to claims challenging fees that were not
Varon’s Renewed MSJ (8/1/16)). See “Preemption Responses” from Page 1.
incurred during that period. CR3:1444 (July 8, 2016 Order).
CR1:794-821;
Varon’s Renewed MSJ granted in part to the same extent as
1SuppCR6:2859-67.
First Street’s motion was granted in the Court’s’ July 8, 2016
Order. CR5:2943-44.
Granted as to all claims except United’s money had and
Traditional received claims for payments that United made after August
Statute of Limitations 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On March 23,
Money Had & (6/16/16 Joinder in Crumley’s See “Fraud Responses” from Page 1. 2017, United non-suited its remaining claims for money had
Rec’d., MSJ1SuppCR5:2669-89). and received for payments made after August 28, 2013, and
(3rd Amd. Pet.); CR2:1061-78. on July 11, 2017, the trial court signed an Order Dismissing
CR3:1363, Non-Suited claims. 2SuppCR:3.
¶¶ 73-74. • In their No Evidence and Traditional Motion for Summary
Judgment, the First Street Defendants and Dr. Varon asserted
that, for the same reasons that United’s fraud and negligent
No-Evidence (8/1/16)
CR4:2178 & n.2. misrepresentation claims failed, United’s money had and
received, unjust enrichment, civil conspiracy, and aiding and
abetting claims also failed. CR4:2178 & n.2. Therefore,
Traditional (8/1/16) Denied. CR5:2943 (Oct. 6, 2016 Order).
United’s responses to the fraud and negligent
Voluntary Payment Doctrine
misrepresentation grounds in the No Evidence and
CR4:2179-80.
Traditional Motion for Summary Judgment also would apply
to the money had and received, unjust enrichment, civil
conspiracy, and aiding and abetting claims.
• The voluntary payment rule does not apply. CR4:2607-08.

3
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

First Street Hospital, LP; First Surgical Partners, LLC; First Surgical Partner Holdings, Inc.; and Jacob Varon
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
Granted as to United’s claims challenging facility fees that
were incurred between November 10, 2011 and the date of
Traditional
termination of First Street’s management agreements with
Preemption (4/29/16 MSJ;
its FECs. Denied as to claims challenging fees that were not
Varon’s Renewed MSJ (8/1/16)). See “Preemption Responses” from Page 1.
incurred during that period. CR3:1444 (July 8, 2016 Order).
CR1:794-821;
Varon’s renewed MSJ granted in part to the same extent as
1SuppCR6:2859-67.
First Street’s motion was granted in the Court’s July 8, 2016
Order. CR5:2943-44.
Granted as to all claims except United’s money had and
Traditional received claims for payments that United made after August
Statute of Limitations 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On March 23,
Unjust (6/16/16 Joinder in Crumley’s See “Fraud Responses” from Page 1. 2017, United non-suited its remaining claims for money had
Enrichment, MSJ 1SuppCR5:2669-89). and received for payments made after August 28, 2013, and
(3rd Amd. Pet.); CR2:1061-78. on July 11, 2017, the trial court signed an Order Dismissing
CR3:1363, Non-Suited claims. 2SuppCR:3.
¶¶ 75-77. • In their No Evidence and Traditional Motion for Summary
Judgment, the First Street Defendants and Dr. Varon asserted
that, for the same reasons that United’s fraud and negligent
No-Evidence (8/1/16) misrepresentation claims failed, United’s money had and
CR4:2178 & n.2 received, unjust enrichment, civil conspiracy, and aiding and
abetting claims also failed. CR4:2178 & n.2. Therefore,
Denied. CR5:2943 (Oct. 6, 2016 Order).
Traditional (8/1/16) United’s responses to the fraud and negligent
Voluntary Payment Doctrine misrepresentation grounds in the No Evidence and
CR4:2179-80. Traditional Motion for Summary Judgment also would apply
to the money had and received, unjust enrichment, civil
conspiracy, and aiding and abetting claims.
• The voluntary payment rule does not apply. CR4:2607-08.

4
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

First Street Hospital, LP; First Surgical Partners, LLC; First Surgical Partner Holdings, Inc.; and Jacob Varon
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
Granted as to United’s claims challenging facility fees that
were incurred between November 10, 2011 and the date of
Traditional termination of First Street’s management agreements with
Preemption (4/29/16 MSJ; its FECs. Denied as to claims challenging fees that were not
Varon’s Renewed MSJ (8/1/16)). See “Preemption Responses” from Page 1. incurred during that period. CR3:1444 (July 8, 2016 Order).
CR1:794-821;
1SuppCR6:2859-67. Varon’s renewed MSJ granted in part to the same extent as
First Street’s motion was granted in the Court’s July 8, 2016
Order. CR5:2943-44.
Granted as to all claims except United’s money had and
Traditional received claims for payments that United made after August
Statute of Limitations 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On March 23,
Civil Conspiracy, (6/16/16 Joinder in Crumley’s See “Fraud Responses” from Page 1. 2017, United non-suited its remaining claims for money had
(3rd Amd. Pet.); MSJ; 1SuppCR5:2669-89). and received for payments made after August 28, 2013, and
CR3:1363-64, CR2:1061-78. on July 11, 2017, the trial court signed an Order Dismissing
¶¶ 78-81. Non-Suited claims. 2SuppCR:3.
• In their No Evidence and Traditional Motion for Summary
Judgment, the First Street Defendants and Dr. Varon asserted
No-Evidence (8/01/16). that, for the same reasons that United’s fraud and negligent
CR4:2178 & n.2. misrepresentation claims failed, United’s money had and
received, unjust enrichment, civil conspiracy, and aiding and
abetting claims also failed. CR4:2178 & n.2. Therefore,
Traditional (8/1/16) Denied. CR5:2943 (Oct. 6, 2016 Order).
United’s responses to the fraud and negligent
Voluntary Payment Doctrine
misrepresentation grounds in the No Evidence and
CR4:2179-80.
Traditional Motion for Summary Judgment also would apply
to the money had and received, unjust enrichment, civil
conspiracy, and aiding and abetting claims.
• The voluntary payment rule does not apply. CR4:2607-08.

5
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

First Street Hospital, LP; First Surgical Partners, LLC; First Surgical Partner Holdings, Inc.; and Jacob Varon
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
Granted as to United’s claims challenging facility fees that
were incurred between November 10, 2011 and the date of
Traditional
termination of First Street’s management agreements with
Preemption (4/29/16 MSJ;
its FECs. Denied as to claims challenging fees that were not
Varon’s Renewed MSJ (8/1/16)). See “Preemption Responses” from Page 1.
incurred during that period. CR3:1444 (July 8, 2016 Order).
CR1:794-821;
Varon’s renewed MSJ granted in part to the same extent as
1SuppCR6:2859-67.
First Street’s motion was granted in the Court’s July 8, 2016
Order. CR5:2943-44.
Aiding &
• In their No Evidence and Traditional Motion for Summary
Abetting,
Judgment, the First Street Defendants and Dr. Varon asserted
(3rd Amd. Pet.);
that, for the same reasons that United’s fraud and negligent
CR3:1364, No-Evidence
misrepresentation claims failed, United’s money had and
¶¶ 82-85 CR4:2178 & n.2
received, unjust enrichment, civil conspiracy, and aiding and
abetting claims also failed. CR4:2178 & n.2. Therefore,
Traditional (8/1/16) Denied. CR5:2943 (Oct. 6, 2016 Order).
United’s responses to the fraud and negligent
Voluntary Payment Doctrine.
misrepresentation grounds in the No Evidence and
CR4:2179-80.
Traditional Motion for Summary Judgment also would apply
to the money had and received, unjust enrichment, civil
conspiracy, and aiding and abetting claims.
• The voluntary payment rule does not apply. CR4:2607-08.
Granted as to United’s claims challenging facility fees that
were incurred between November 10, 2011 and the date of
Declaratory
termination of First Street’s management agreements with
Judgment,
Traditional its FECs. Denied as to claims challenging fees that were not
(3rd Amd. Pet.); See “Preemption Responses” from Page 1.
Preemption. CR1:818-19. incurred during that period. CR3:1444 (July 8, 2016 Order).
CR3:1369-70,
Varon’s renewed MSJ granted in part to the same extent as
¶¶ 104-05.
First Street’s motion was granted in the Court’s July 8, 2016
Order. CR5:2943-44.

6
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

St. Michael’s Emergency Center, LLC; The Woodlands FEC, LLC; Shannon Orsak; and Brian Orsak
(1) Cause of
(2) MSJ Grounds (3) MSJ Response (4) Trial Court’s Ruling
Action
“Preemption Responses”:
• United’s claims for Defendants’ fraud in the bills they
Traditional
submitted to United do not challenge any decision by CMS,
Preemption (5/5/16 Joinder in
and Texas law imposes its own requirements for exemption Denied. CR3:1445 (July 8, 2016 Order).
First Street’s 4/29/16 MSJ).
from licensure requirements. CR2:851-53.
CR2:822-24.
• Even if preemption exists, it would not bar United’s claims
that pre-date the “granting” of PBE status. CR2:856-57.
“Fraud Responses”:
Granted as to all claims except United’s money had and
Traditional • United’s fraud cause of action accrued when Defendants
received claims for payments that United made after
Statute of Limitations and No submitted and United paid the fraudulent bills that caused
August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Justifiable Reliance (6/17/16 United’s injuries. CR3:1473.
March 23, 2017, United non-suited its remaining claims
Joinder in Crumley’s MSJ; • Defendants’ fraudulent concealment raises a fact question.
for money had and received for payments made after
Fraud, 8/1/16 MSJ; 8/1/16 Joinder)). CR3:1474-76.
August 28, 2013, and on July 11, 2017, the trial court
Fraudulent CR2:1265-67; CR4:2476-77; • Conspiracy is a derivative of fraud and should thus have the
signed an Order Dismissing Non-Suited claims.
Non-Disclosure CR4:2503-09. same limitations period. CR3:1480-81.
2SuppCR:3.
(3rd Amd. Pet.); • Justifiable reliance is a question of fact. CR3:1481-83.
CR3:1360-62, Traditional (8/1/16).
¶¶ 65-69 CR4:2503-08.
St. Michael’s and The Granted in part and Denied in part to the same extent as
• PBE status is no bar to United’s claims against Defendants
Woodlands FEC conclusively the Court’s ruling on the motion that was joined.
for these pre-PBE fraudulent bills. CR4:2554-55.
established their entitlement to CR5:2944 (Oct. 6, 2016 Order).
facility fees.
CR4:2506-07.
• There is evidence that Defendants falsely represented that
No-Evidence (8/1/16).
First Street was the provider on their bills. CR4:2604-07.
CR4:2439-47.
• There is evidence that United justifiably relied on Granted in part as to United’s claims against Shannon
Elements Challenged:
representations made by Defendants. CR4:2605-07. Orsak and Brian Orsak and Denied in part as to the
Misrepresentation, reliance,
•Defendants are liable for fraud as a party to a fraudulent remainder. CR5:2943 (Oct. 6, 2016 Order).
duty, opportunity to discover
scheme. CR4:2576-77.
facts, and injury. CR4:2441-45.
• There is evidence of duty to disclose the truth. CR4:2577.

7
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

St. Michael’s Emergency Center, LLC; The Woodlands FEC, LLC; Shannon Orsak; and Brian Orsak
(1) Cause of
(2) MSJ Grounds (3) MSJ Response (4) Trial Court’s Ruling
Action
Traditional
Preemption See “Preemption Responses” from Page 7. Denied. CR3:1445 (July 8, 2016 Order).
CR2:822-24.
Granted as to all claims except United’s money had and
received claims for payments that United made after
Traditional
August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Statute of Limitations and No
March 23, 2017, United non-suited its remaining claims
Reliance (6/17/16 Joinder; See “Fraud Responses” from Page 7.
for money had and received for payments made after
Negligent 8/1/16 MSJ). CR2:1265-67;
August 28, 2013, and on July 11, 2017, the trial court
Misrep., CR4:2476-77; CR4:2503-09.
signed an Order Dismissing Non-Suited claims.
(3rd Amd. Pet.);
2SuppCR:3.
CR3:1362-63,
Traditional (8/1/16)
¶¶ 70-72.
St. Michael’s and The Granted in part and Denied in part to the same extent as
Woodlands FEC conclusively See “Fraud Responses” from Page 7. the Court’s ruling on the motion that was joined.
established their entitlement CR5:2944 (Oct. 6, 2016 Order).
to facility fees. CR4:2506-07.
No-Evidence (8/1/16)
Granted in part as to United’s claims against Shannon
Elements Challenged: • There is evidence of misrepresentation, reliance and injury.
Orsak and Brian Orsak and Denied in part as to the
Misrepresentation, reliance CR4:2577-78.
remainder. CR5:2943 (Oct. 6, 2016 Order).
and injury. CR4:2444-45.
Traditional
Preemption (5/5/16 Joinder in
See “Preemption Responses” from Page 7. Denied. CR3:1445 (July 8, 2016 Order).
First Street’s 4/29/16 MSJ).
CR2:822-24.
Granted as to all claims except United’s money had and
received claims for payments that United made after
Traditional
Money Had & August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Statute of Limitations (6/17/16
Rec’d., March 23, 2017, United non-suited its remaining claims
Joinder; 8/1/16 MSJ). See “Fraud Responses” from Page 7.
(3rd Amd. Pet.); for money had and received for payments made after
CR2:1265-67; CR4:2476-77;
CR3:1363, August 28, 2013, and on July 11, 2017, the trial court
CR4:2503-09.
¶¶ 73-74. signed an Order Dismissing Non-Suited claims.
2SuppCR:3.
Traditional (8/1/16)
St. Michael’s and The Granted in part and Denied in part to the same extent as
Woodlands FEC conclusively See “Fraud Responses” from Page 7. the Court’s ruling on the motion that was joined.
established their entitlement CR5:2944 (Oct. 6, 2016 Order).
to facility fees. CR4:2506-07.

8
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

St. Michael’s Emergency Center, LLC; The Woodlands FEC, LLC; Shannon Orsak; and Brian Orsak
(1) Cause of
(2) MSJ Grounds (3) MSJ Response (4) Trial Court’s Ruling
Action
Money Had & No-Evidence (8/1/16)
• There is evidence St. Michael’s Defendants obtained facility
Rec’d. (cont’d), CR4:2439-47. Granted in part as to United’s claims against Shannon
fee payments from United on bills that represented First
(3rd Amd. Pet.); Elements Challenged: Orsak and Brian Orsak and Denied in part as to the
Street was the provider performing the services being billed.
CR3:1363, Defendants are holding money. remainder. CR5:2943 (Oct. 6, 2016 Order).
CR4:2580.
¶¶ 73-74. CR4:2445.
Traditional
See “Preemption Responses” from Page 7. Denied. CR3:1445 (July 8, 2016 Order).
Preemption. CR2:822-24.
Granted as to all claims except United’s money had and
received claims for payments that United made after
Traditional
August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Statute of Limitations (6/17/16
March 23, 2017, United non-suited its remaining claims
Joinder; 8/1/16 MSJ). See “Fraud Responses” from Page 7.
for money had and received for payments made after
CR2:1265-67; CR4:2476-77;
August 28, 2013, and on July 11, 2017, the trial court
Unjust CR4:2503-09.
signed an Order Dismissing Non-Suited claims.
Enrichment,
2SuppCR:3.
(3rd Amd. Pet.);
Traditional (8/1/16)
CR3:1363,
St. Michael’s and The Granted in part and Denied in part to the same extent as
¶¶ 75-77.
Woodlands FEC conclusively See “Fraud Responses” from Page 7. the Court’s ruling on the motion that was joined.
established their entitlement CR5:2944 (Oct. 6, 2016 Order).
to facility fees. CR4:2506-07.
No-Evidence (8/1/16)
• There is evidence St. Michael’s Defendants obtained facility
CR4:2439-47. Granted in part as to United’s claims against Shannon
fee payments from United on bills that represented First
Elements Challenged: Orsak and Brian Orsak and Denied in part as to the
Street was the provider performing the services being billed.
Defendants are holding money. remainder. CR5:2943 (Oct. 6, 2016 Order).
CR4:2580.
CR4:2445.
Traditional
See “Preemption Responses” from Page 7. Denied. CR3:1445 (July 8, 2016 Order).
Preemption. CR2:822-24.
Granted as to all claims except United’s money had and
Civil Conspiracy, received claims for payments that United made after
Traditional
(3rd Amd. Pet.); August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Statute of Limitations (6/17/16
CR3:1363-64, March 23, 2017, United non-suited its remaining claims
Joinder; 8/1/16 MSJ). See “Fraud Responses” from Page 7.
¶¶ 78-81. for money had and received for payments made after
CR2:1265-67; CR4:2476-77;
August 28, 2013, and on July 11, 2017, the trial court
CR4:2503-09.
signed an Order Dismissing Non-Suited claims.
2SuppCR:3.

9
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

St. Michael’s Emergency Center, LLC; The Woodlands FEC, LLC; Shannon Orsak; and Brian Orsak
(1) Cause of
(2) MSJ Grounds (3) MSJ Response (4) Trial Court’s Ruling
Action
Traditional (8/1/16)
St. Michael’s and The Granted in part and Denied in part to the same extent as
Woodlands FEC conclusively See “Fraud Responses” from Page 7. the Court’s ruling on the motion that was joined.
Civil Conspiracy
established their entitlement CR5:2944 (Oct. 6, 2016 Order).
(cont’d),
to facility fees. CR4:2506-07.
(3rd Amd. Pet.);
No-Evidence (8/1/16)
CR3:1363-64,
CR4:2439-47. • There is evidence Defendants engaged in unlawful overt Granted in part as to United’s claims against Shannon
¶¶ 78-81.
Elements Challenged: acts and employed unlawful means in furtherance of their Orsak and Brian Orsak and Denied in part as to the
Defendants did an unlawful act conspiracy. CR4:2578-79. remainder. CR5:2943 (Oct. 6, 2016 Order).
and damages. CR4:2445-46.
Traditional
See “Preemption Responses” from Page 7. Denied. CR3:1445 (July 8, 2016 Order).
Preemption. CR2:822-24.
Granted as to all claims except United’s money had and
received claims for payments that United made after
Traditional
August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Statute of Limitations (6/17/16
March 23, 2017, United non-suited its remaining claims
Joinder; 8/1/16 MSJ). See “Fraud Responses” from Page 7.
for money had and received for payments made after
CR2:1265-67; CR4:2476-77;
August 28, 2013, and on July 11, 2017, the trial court
CR4:2503-09.
signed an Order Dismissing Non-Suited claims.
2SuppCR3.
Aiding & Traditional (8/1/16)
Abetting, St. Michael’s and The
Granted in part and Denied in part to the same extent as
(3rd Amd. Pet.); Woodlands FEC conclusively
See “Fraud Responses” from Page 7. the Court’s ruling on the motion that was joined.
CR3:1364, established their entitlement
CR5:2944 (Oct. 6, 2016 Order).
¶¶ 82-85 to facility fees.
CR4:2506-07.
No-Evidence (8/1/16)
CR4:2439-47.
Elements Challenged: • There is evidence Defendants St. Michael's Defendants
Defendants conduct does not schemed with other Defendants to improperly obtain facility Granted in part as to United’s claims against Shannon
constitute highly dangerous, fees from United and gave each other assistance and Orsak and Brian Orsak and Denied in part as to the
deviant or antisocial behavior encouragement in submitting their various fraudulent bills to remainder. CR5:2943 (Oct. 6, 2016 Order).
likely to cause injury, death or United. CR4:2579-80.
certain harm to a large group
of people. CR4:2446-47.

10
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

St. Michael’s Emergency Center, LLC; The Woodlands FEC, LLC; Shannon Orsak; and Brian Orsak
(1) Cause of
(2) MSJ Grounds (3) MSJ Response (4) Trial Court’s Ruling
Action
Declaratory
Judgment,
Traditional
(3rd Amd. Pet.); See “Preemption Responses” from Page 7. Denied. CR3:1445 (July 8, 2016 Order).
Preemption CR1:818-19.
CR3:1369-70,
¶¶ 104-05.

11
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

Emergency Healthcare Partners, LP d/b/a Memorial Heights Emergency Center
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
“Preemption Responses”:
• United’s claims for Defendants’ fraud in the bills they
Traditional
submitted to United do not challenge any decision by CMS,
Preemption (5/6/16 Joinder in
and Texas law imposes its own requirements for exemption Denied. CR3:1445 (July 8, 2016 Order).
First Street’s 4/29/16 MSJ).
from licensure requirements. CR2:851-53.
CR2:831-33.
• Even if preemption exists, it would not bar United’s claims
that pre-date the “granting” of PBE status. CR2:856-57.
“Fraud Responses”:
Granted as to all claims except United’s money had and
• United’s fraud cause of action accrued when Defendants
received claims for payments that United made after
submitted and United paid the fraudulent bills that caused
Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
United’s injuries. CR3:1473.
Statute of Limitations and No March 23, 2017, United non-suited its remaining claims
• Defendants’ fraudulent concealment raises a fact question.
Fraud, Reliance (6/17/16 Joinder in for money had and received for payments made after
CR3:1474-76.
Fraudulent Non- Crumley’s MSJ). CR2:1261-64. August 28, 2013, and on July 11, 2017, the trial court
• Conspiracy is a derivative of fraud and should thus have the
Disclosure signed an Order Dismissing Non-Suited claims.
same limitations period. CR3:1480-81.
(3rd Amd. Pet.); 2SuppCR:3.
• Justifiable reliance is a question of fact. CR3:1481-83.
CR3:1360-62,
¶¶ 65-69
No-Evidence (8/1/16)
CR4:2478-99.
Elements Challenged: • United has standing as a fiduciary. CR4:2692-94.
Misrepresentation, Reliance, • There is evidence that Defendants falsely represented that
duty, defendant knew that First Street was the provider on their bills. CR4:2694.
Denied as to fraud and granted as to fraudulent non-
United was ignorant of the • Defendants are liable for fraud as a party to a fraudulent
disclosure. CR5:2943 (Oct. 6, 2016 Order).
facts and did not have an equal scheme. CR4:2695.
opportunity to discover the • There is evidence of duty to disclose the truth.
facts, Defendant remained CR4:2694-95.
deliberately silent, reliance and
injury. CR4:2486-88.

12
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

Emergency Healthcare Partners, LP d/b/a Memorial Heights Emergency Center
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
Traditional
Preemption (5/6/16 Joinder in
See “Preemption Responses” from Page 12. Denied. CR3:1445 (July 8, 2016 Order).
First Street’s 4/29/16 MSJ).
CR2:831-33.
Granted as to all claims except United’s money had and
received claims for payments that United made after
Negligent
Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Misrep.,
Statute of Limitations and No March 23, 2017, United non-suited its remaining claims
(3rd Amd. Pet.); See “Fraud Responses” from Page 12.
Reliance (6/17/16 Joinder in for money had and received for payments made after
CR3:1362-63,
Crumley’s MSJ). CR2:1261-64. August 28, 2013, and on July 11, 2017, the trial court
¶¶ 70-72.
signed an Order Dismissing Non-Suited claims.
2SuppCR:3.
No-Evidence (8/1/16)
Elements Challenged: • There is evidence of reliance, misrepresentation and injury.
Denied. CR5:2943 (Oct. 6, 2016 Order).
Reliance, misrepresentation CR4:2696-97.
and injury. CR4:2488-89.
Traditional
Preemption (5/6/16 Joinder in
See “Preemption Responses” from Page 12. Denied. CR3:1445 (July 8, 2016 Order).
First Street’s 4/29/16 MSJ).
CR2:831-33.
Granted as to all claims except United’s money had and
received claims for payments that United made after
Money Had &
Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Rec’d.,
Statute of Limitations (6/17/16 March 23, 2017, United non-suited its remaining claims
(3rd Amd. Pet.); See “Fraud Responses” from Page 12.
Joinder in Crumley’s MSJ). for money had and received for payments made after
CR3:1363,
CR2:1261-64. August 28, 2013, and on July 11, 2017, the trial court
¶¶ 73-74.
signed an Order Dismissing Non-Suited claims.
2SuppCR:3.
No-Evidence (8/1/16)
Elements Challenged: • There is evidence United has an ownership interest in the
Denied. CR5:2943 (Oct. 6, 2016 Order).
Ownership interest in the money. CR4:2698.
money. CR4:2489-90.

13
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

Emergency Healthcare Partners, LP d/b/a Memorial Heights Emergency Center
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
Traditional
Preemption (5/6/16 Joinder in
See “Preemption Responses” from Page 12. Denied. CR3:1445 (July 8, 2016 Order)
First Street’s 4/29/16 MSJ).
CR2:831-33.
Granted as to all claims except United’s money had and
received claims for payments that United made after August
Traditional
Unjust 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On March 23,
Statute of Limitations (6/17/16
Enrichment, See “Fraud Responses” from Page 12. 2017, United non-suited its remaining claims for money had
Joinder in Crumley’s MSJ).
(3rd Amd. Pet.); and received for payments made after August 28, 2013, and
CR2:1261-64. on July 11, 2017, the trial court signed an Order Dismissing
CR3:1363,
¶¶ 75-77. Non-Suited claims. 2SuppCR:3.
No-Evidence (8/1/16)
Element Challenged:
That Defendant wrongfully • There is evidence Defendants wrongfully received facility
Denied. CR5:2943 (Oct. 6, 2016 Order).
secured or passively received a fees. CR4:2698.
benefit that would be wrong to
retain. CR4:2490-91.
Traditional
Preemption (5/6/16 Joinder in
See “Preemption Responses” from Page 12. Denied. CR3:1445 (July 8, 2016 Order).
First Street’s 4/29/16 MSJ).
Civil Conspiracy, CR2:831-33.
(3rd Amd. Pet.); Granted as to all claims except United’s money had and
CR3:1363-64, received claims for payments that United made after August
Traditional
28, 2013. CR5:2942 (Oct. 6, 2016 Order). On March 23,
¶¶ 78-81. Statute of Limitations (6/17/16
See “Fraud Responses” from Page 12. 2017, United non-suited its remaining claims for money had
Joinder in Crumley’s MSJ).
and received for payments made after August 28, 2013, and
CR2:1261-64. on July 11, 2017, the trial court signed an Order Dismissing
Non-Suited claims. 2SuppCR:3.

14
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

Emergency Healthcare Partners, LP d/b/a Memorial Heights Emergency Center
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
No-Evidence (8/1/16)
Elements Challenged:
Defendant was a member of a
combination of 2 or more
Civil Conspiracy
actors, had a meeting of the
(cont’d),
minds, one of the members • Defendants engaged in unlawful avert acts and employed
(3rd Amd. Pet.); Denied. CR5:2943 (Oct. 6, 2016 Order).
committed an unlawful overt unlawful means in furtherance of their conspiracy. CR4:2697.
CR3:1363-64,
act to further the course and
¶¶ 78-81.
injury. CR4:2490-91.
Traditional (8/1/16)
Underlying torts were time-
barred. CR4:2491-92.
Traditional
Preemption (5/6/16 Joinder in
See “Preemption Responses” from Page 12. Denied. CR3:1445 (July 8, 2016 Order).
Aiding & First Street’s 4/29/16 MSJ).
Abetting, CR2:831-33.
(3rd Amd. Pet.); No-Evidence (8/1/16)
CR3:1364, Elements Challenged:
• Defendants intentionally schemed and gave each other
¶¶ 82-85 Intent and knowledge as to Granted. CR5:2943 (Oct. 6, 2016 Order).
assistance and encouragement. CR4:2698.
Memorial Heights.
CR4:2492-94.
Traditional (8/1/16)
Declaratory
As a matter of law, the claims
Judgment, • United’s claim for declaratory relief, however, essentially
for declaratory judgment
(3rd Amd. Pet.); seeks declarations defining Defendants’ obligations regarding Granted. CR5:2943 (Oct. 6, 2016 Order).
duplicated United’s already
CR3:1369-70, honest billing in the future. CR4:2699.
existing tort claims.
¶¶ 104-05.
CR4:2494-95.

15
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

Diane Crumley; Vital Weight Control, Inc.; and Harris County Title Search, Inc.
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
Granted as to United’s claims challenging facility fees
that were incurred between November 10, 2011 and the
date of termination of First Street’s management
“Preemption Responses”:
Traditional agreements with its FECs. Denied as to claims
• United’s claims for Defendants’ fraud in the bills they
Preemption (5/6/16 Joinder in challenging fees that were not incurred during that
submitted to United do not challenge any decision by CMS,
First Street’s 4/29/16 MSJ; period. CR3:1444 (July 8, 2016 Order).
and Texas law imposes its own requirements for exemption
8/1/16 MSJ).
from licensure requirements. CR2:851-53.
1SuppCR5:2537-38; The renewed MSJ filed by Crumley, Vital Weight Control,
• Even if preemption exists, it would not bar United’s claims
CR4:2261-70. and Harris County Title Search was granted in part to the
that pre-date the “granting” of PBE status. CR2:856-57.
same extent as First Street’s motion was granted in the
Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016
Order).
Fraud,
“Fraud Responses”:
Fraudulent Non- Granted as to all claims except United’s money had and
• United’s fraud cause of action accrued when Defendants
Disclosure received claims for payments that United made after
submitted and United paid the fraudulent bills that caused
(3rd Amd. Pet.); Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
United’s injuries. CR3:1473.
CR3:1360-62, Statute of Limitations and No March 23, 2017, United non-suited its remaining claims
• Defendants’ fraudulent concealment raises a fact question.
¶¶ 65-69 Reliance (6/2/16 MSJ). for money had and received for payments made after
CR3:1474-76.
1SuppCR5:2669-89. August 28, 2013, and on July 11, 2017, the trial court
• Conspiracy is a derivative of fraud and should thus have the
signed an Order Dismissing Non-Suited claims.
same limitations period. CR3:1480-81.
2SuppCR:3.
• Justifiable reliance is a question of fact. CR3:1481-83.
No-Evidence (8/1/16) • United has standing as a fiduciary. CR5:2813-16.
CR4:2384-93. • There is evidence that Defendants falsely represented that
Elements Challenged: First Street was the provider on their bills. CR5:2816-18.
Lack of Standing, • Defendants are liable for fraud as a party to a fraudulent
Denied. CR5:2943 (Oct. 6, 2016 Order).
Misrepresentation, knowledge scheme. CR5:2816-18.
of falsity, acted with reckless • There is evidence of a duty to disclose the truth.
disregard, duty, reliance and CR5:2817-18.
damages. CR4:2388-89. • There is evidence of knowledge. CR5:2817-18.

16
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

Diane Crumley; Vital Weight Control, Inc.; and Harris County Title Search, Inc.
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
Granted as to United’s claims challenging facility fees
that were incurred between November 10, 2011 and the
date of termination of First Street’s management
Traditional
agreements with its FECs. Denied as to claims
Preemption (5/6/16 Joinder in
challenging fees that were not incurred during that
First Street’s 4/29/16 MSJ;
See “Preemption Responses” from Page 16. period. CR3:1444 (July 8, 2016 Order).
8/1/16 MSJ).
The renewed MSJ filed by Crumley, Vital Weight Control,
1SuppCR5:2537-38;
and Harris County Title Search was granted in part to the
CR4:2261-70.
same extent as First Street’s motion was granted in the
Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016
Negligent Order).
Misrep., Granted as to all claims except United’s money had and
(3rd Amd. Pet.); received claims for payments that United made after
CR3:1362-63, Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
¶¶ 70-72. Statute of Limitations and No March 23, 2017, United non-suited its remaining claims
See “Fraud Responses” from Page 16.
Reliance (6/2/16 MSJ). for money had and received for payments made after
1SuppCR5:2669-89. August 28, 2013, and on July 11, 2017, the trial court
signed an Order Dismissing Non-Suited claims.
2SuppCR:3.
No-Evidence (8/1/16)
Elements Challenged:
• There is evidence that Defendants falsely represented that
Lack of standing, provided false
First Street was the provider on their bills, failed to use Granted. CR5:2943 (Oct. 6, 2016 Order).
information, exercise
reasonable care and United suffered an injury. CR5:2816-18.
reasonable care, injury.
CR4:2389-90.
Granted as to United’s claims challenging facility fees
that were incurred between November 10, 2011 and the
date of termination of First Street’s management
Traditional
Money Had & agreements with its FECs. Denied as to claims
Preemption (5/6/16 Joinder in
Rec’d., challenging fees that were not incurred during that
First Street’s 4/29/16 MSJ;
(3rd Amd. Pet.); See “Preemption Responses” from Page 16. period. CR3:1444 (July 8, 2016 Order).
8/1/16 MSJ).
CR3:1363, The renewed MSJ filed by Crumley, Vital Weight Control,
1SuppCR5:2537-38;
¶¶ 73-74. and Harris County Title Search was granted in part to the
CR4:2261-70.
same extent as First Street’s motion was granted in the
Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016
Order).

17
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

Diane Crumley; Vital Weight Control, Inc.; and Harris County Title Search, Inc.
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
Granted as to all claims except United’s money had and
received claims for payments that United made after
August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Traditional
March 23, 2017, United non-suited its remaining claims
Statute of Limitations (6/2/16 See “Fraud Responses” from Page 16.
Money Had & for money had and received for payments made after
MSJ). 1SuppCR5:2669-89.
Rec’d. (cont’d), August 28, 2013, and on July 11, 2017, the trial court
(3rd Amd. Pet.); signed an Order Dismissing Non-Suited claims.
CR3:1363, 2SuppCR:3.
¶¶ 73-74. No-Evidence (8/1/16)
Elements Challenged:
• There is evidence that Defendants received payments.
Lack of standing, holds money, Denied. CR5:2943 (Oct. 6, 2016 Order).
CR5:2821.
and ownership of funds.
CR4:2390.
Granted as to United’s claims challenging facility fees that
were incurred between November 10, 2011 and the date of
Traditional termination of First Street’s management agreements with
its FECs. Denied as to claims challenging fees that were not
Preemption (5/6/16 Joinder in
incurred during that period. CR3:1444 (July 8, 2016 Order).
First Street’s 4/29/16 MSJ; See “Preemption Responses” from Page 16.
The renewed MSJ filed by Crumley, Vital Weight Control,
8/1/16 MSJ). 1SuppCR5:2537- and Harris County Title Search was granted in part to the
38; CR4:2261-70. same extent as First Street’s motion was granted in the
Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016
Order).
Unjust Granted as to all claims except United’s money had and
Enrichment, received claims for payments that United made after
(3rd Amd. Pet.); August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Traditional
CR3:1363, March 23, 2017, United non-suited its remaining claims
Statute of Limitations (6/2/16 See “Fraud Responses” from Page 16.
¶¶ 75-77. for money had and received for payments made after
MSJ). 1SuppCR5:2669-89.
August 28, 2013, and on July 11, 2017, the trial court
signed an Order Dismissing Non-Suited claims.
2SuppCR:3.
No-Evidence (8/1/16)
Elements Challenged:
Lack of standing, benefit which
would be unconscionable to • There is evidence Defendants received a benefit. CR5:2821. Denied. CR5:2943 (Oct. 6, 2016 Order).
retain by fraud, duress or
undue advantage.
CR4:2390-91.

18
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

Diane Crumley; Vital Weight Control, Inc.; and Harris County Title Search, Inc.
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
Granted as to United’s claims challenging facility fees
that were incurred between November 10, 2011 and the
date of termination of First Street’s management
Traditional
agreements with its FECs. Denied as to claims
Preemption (5/6/16 Joinder in
challenging fees that were not incurred during that
First Street’s 4/29/16 MSJ;
See “Preemption Responses” from Page 16. period. CR3:1444 (July 8, 2016 Order).
8/1/16 MSJ).
The renewed MSJ filed by Crumley, Vital Weight Control,
1SuppCR5:2537-38;
and Harris County Title Search was granted in part to the
CR4:2261-70.
same extent as First Street’s motion was granted in the
Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016
Order).
Granted as to all claims except United’s money had and
Civil Conspiracy,
received claims for payments that United made after
(3rd Amd. Pet.);
August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
CR3:1363-64, Traditional
March 23, 2017, United non-suited its remaining claims
¶¶ 78-81. Statute of Limitations (6/2/16 See “Fraud Responses” from Page 16.
for money had and received for payments made after
MSJ). 1SuppCR5:2669-89.
August 28, 2013, and on July 11, 2017, the trial court
signed an Order Dismissing Non-Suited claims.
2SuppCR:3.
No-Evidence (8/1/16)
Elements Challenged: Denied in part as to standing and as to United’s claims
• There is evidence Defendants engaged in engaged in
Lack of standing, meeting of for fraud, fraudulent nondisclosure, money had and
unlawful overt acts and employed unlawful means in
the minds on an unlawful received, unjust enrichment, and conspiracy. CR5:2943
furtherance of a conspiracy. CR5:2819.
course of conduct; committing (Oct. 6, 2016 Order).
one or more unlawful overt
acts, and injury. CR4:2391.
Granted as to United’s claims challenging facility fees that
were incurred between November 10, 2011 and the date of
Traditional termination of First Street’s management agreements with
Aiding &
Preemption (5/6/16 Joinder in its FECs. Denied as to claims challenging fees that were not
Abetting,
First Street’s 4/29/16 MSJ; incurred during that period. CR3:1444 (July 8, 2016 Order).
(3rd Amd. Pet.); See “Preemption Responses” from Page 16.
8/1/16 MSJ). The renewed MSJ filed by Crumley, Vital Weight Control,
CR3:1364, and Harris County Title Search was granted in part to the
1SuppCR5:2537-38;
¶¶ 82-85 same extent as First Street’s motion was granted in the
CR4:2261-70.
Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016
Order).

19
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

Diane Crumley; Vital Weight Control, Inc.; and Harris County Title Search, Inc.
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
No-Evidence (8/1/16)
Elements Challenged:
Aiding &
Lack of standing, knowledge,
Abetting
intent to assist, provided • There is evidence Defendants schemed together and gave
(cont’d),
assistance or encouragement, each other assistance and encouragement in submitting bills Granted. CR5:2943 (Oct. 6, 2016 Order).
(3rd Amd. Pet.);
that said assistance or to United. CR5:2820.
CR3:1364,
encouragement was a
¶¶ 82-85
substantial factor in causing
the tort. CR4:2391
Granted as to United’s claims challenging facility fees
that were incurred between November 10, 2011 and the
date of termination of First Street’s management
Traditional
agreements with its FECs. Denied as to claims
Preemption (5/6/16 Joinder in
challenging fees that were not incurred during that
First Street’s 4/29/16 MSJ;
Alter Ego / See “Preemption Responses” from Page 16. period. CR3:1444 (July 8, 2016 Order).
8/1/16 MSJ).
Piercing, The renewed MSJ filed by Crumley, Vital Weight Control,
1SuppCR5:2537-38;
(3rd Amd. Pet.); and Harris County Title Search was granted in part to the
CR4:2261-70.
CR3:1365-68, same extent as First Street’s motion was granted in the
¶¶ 86-94 Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016
Order).
No-Evidence (8/1/16)
• There is evidence that (1) that the companies are Ms.
Elements Challenged:
Crumley's alter ego, and (2) that Ms. Crumley used the Granted. CR5:2943 (Oct. 6, 2016 Order).
Lack of standing, abuse of
corporate fiction for an illegitimate purpose. CR5:2821-23.
corporation, unity. CR4:2391.
Granted as to United’s claims challenging facility fees
that were incurred between November 10, 2011 and the
date of termination of First Street’s management
Declaratory agreements with its FECs. Denied as to claims
Judgment, challenging fees that were not incurred during that
Traditional
(3rd Amd. Pet.); See “Preemption Responses” from Page 16. period. CR3:1444 (July 8, 2016 Order).
Preemption CR1:818-19.
CR3:1369-70, The renewed MSJ filed by Crumley, Vital Weight Control,
¶¶ 104-05. and Harris County Title Search was granted in part to the
same extent as First Street’s motion was granted in the
Court’s’ July 8, 2016 Order. CR5:2943-44 (Oct. 6, 2016
Order).

20
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

Tony Rotondo
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
“Fraud Responses”
Granted as to all claims except United’s money had and
• United’s fraud cause of action accrued when Defendants
received claims for payments that United made after
submitted and United paid the fraudulent bills that caused
Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
United’s injuries. CR3:1473.
Statute of Limitations and No March 23, 2017, United non-suited its remaining claims
• Defendants’ fraudulent concealment raises a fact question.
Reliance (7/1/16 Joinder in for money had and received for payments made after
Fraud, CR3:1474-76.
Crumley’s MSJ). CR3:1314-16. August 28, 2013, and on July 11, 2017, the trial court
Fraudulent Non- • Conspiracy is a derivative of fraud and should thus have the
signed an Order Dismissing Non-Suited claims.
Disclosure same limitations period. CR3:1480-81.
2SuppCR:3.
(3rd Amd. Pet.); • Justifiable reliance is a question of fact. CR3:1481-83.
CR3:1360-62, “Preemption Responses”
Granted as to United’s claims challenging facility fees
¶¶ 65-69 • United’s claims for Defendants’ fraud in the bills they
Traditional that were incurred between November 10, 2011 and the
submitted to United do not challenge any decision by CMS,
Preemption (10/12/16 Joinder date of termination of First Street’s management
and Texas law imposes its own requirements for exemption
in First Street’s Preemption agreements with its FECs. Denied as to claims
from licensure requirements. CR2:851-53.
Motion). 1SuppCR9:4178-80. challenging fees that were not incurred during that
• Even if preemption exists, it would not bar United’s claims
period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211.
that pre-date the “granting” of PBE status. CR2:856-57.
Granted as to all claims except United’s money had and
received claims for payments that United made after
Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Statute of Limitations and No March 23, 2017, United non-suited its remaining claims
See “Fraud Responses,” above (Page 21).
Reliance (7/1/16 Joinder in for money had and received for payments made after
Negligent
Crumley’s MSJ). CR3:1314-16. August 28, 2013, and on July 11, 2017, the trial court
Misrep.,
signed an Order Dismissing Non-Suited claims.
(3rd Amd. Pet.);
2SuppCR:3.
CR3:1362-63,
Granted as to United’s claims challenging facility fees
¶¶ 70-72.
Traditional that were incurred between November 10, 2011 and the
Preemption (10/12/16 Joinder date of termination of First Street’s management
See “Preemption Responses,” above (Page 21).
in First Street’s Preemption agreements with its FECs. Denied as to claims
Motion). 1SuppCR9:4178-80. challenging fees that were not incurred during that
period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211.

21
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

Tony Rotondo
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
Granted as to all claims except United’s money had and
received claims for payments that United made after
Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Statute of Limitations (7/1/16 March 23, 2017, United non-suited its remaining claims
See “Fraud Responses” from Page 21.
Joinder in Crumley’s MSJ). for money had and received for payments made after
Money Had &
CR3:1314-16. August 28, 2013, and on July 11, 2017, the trial court
Rec’d.,
signed an Order Dismissing Non-Suited claims.
(3rd Amd. Pet.);
2SuppCR:3.
CR3:1363,
Granted as to United’s claims challenging facility fees
¶¶ 73-74.
Traditional that were incurred between November 10, 2011 and the
Preemption (10/12/16 Joinder date of termination of First Street’s management
See “Preemption Responses” from Page 21.
in First Street’s Preemption agreements with its FECs. Denied as to claims
Motion). 1SuppCR9:4178-80. challenging fees that were not incurred during that
period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211.
Granted as to all claims except United’s money had and
received claims for payments that United made after
Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Statute of Limitations (7/1/16 March 23, 2017, United non-suited its remaining claims
See “Fraud Responses” from Page 21.
Joinder in Crumley’s MSJ). for money had and received for payments made after
Unjust
CR3:1314-16. August 28, 2013, and on July 11, 2017, the trial court
Enrichment,
signed an Order Dismissing Non-Suited claims.
(3rd Amd. Pet.);
2SuppCR:3.
CR3:1363,
Granted as to United’s claims challenging facility fees
¶¶ 75-77.
Traditional that were incurred between November 10, 2011 and the
Preemption (10/12/16 Joinder date of termination of First Street’s management
See “Preemption Responses” from Page 21.
in First Street’s Preemption agreements with its FECs. Denied as to claims
Motion). 1SuppCR9:4178-80. challenging fees that were not incurred during that
period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211.

22
No. 01-17-00237-CV
United Healthcare Servs., Inc., et al. v.
First Street Hosp., et al.

Tony Rotondo
(1) Cause of
(2) MSJ Ground (3) MSJ Response (4) Trial Court’s Ruling
Action
Granted as to all claims except United’s money had and
received claims for payments that United made after
Traditional August 28, 2013. CR5:2942 (Oct. 6, 2016 Order). On
Statute of Limitations (7/1/16 March 23, 2017, United non-suited its remaining claims
See “Fraud Responses” from Page 21.
Joinder in Crumley’s MSJ). for money had and received for payments made after
Civil Conspiracy, CR3:1314-16. August 28, 2013, and on July 11, 2017, the trial court
(3rd Amd. Pet.); signed an Order Dismissing Non-Suited claims.
CR3:1363-64, 2SuppCR:3.
¶¶ 78-81. Granted as to United’s claims challenging facility fees
Traditional that were incurred between November 10, 2011 and the
Preemption (10/12/16 Joinder date of termination of First Street’s management
See “Preemption Responses” from Page 21.
in First Street’s Preemption agreements with its FECs. Denied as to claims
Motion). 1SuppCR9:4178-80. challenging fees that were not incurred during that
period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211.
Granted as to United’s claims challenging facility fees
Aiding &
Traditional that were incurred between November 10, 2011 and the
Abetting,
Preemption (10/12/16 Joinder date of termination of First Street’s management
(3rd Amd. Pet.); See “Preemption Responses” from Page 21.
in First Street’s Preemption agreements with its FECs. Denied as to claims
CR3:1364,
Motion). 1SuppCR9:4178-80. challenging fees that were not incurred during that
¶¶ 82-85
period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211.
Granted as to United’s claims challenging facility fees
Declaratory
that were incurred between November 10, 2011 and the
Judgment,
Traditional date of termination of First Street’s management
(3rd Amd. Pet.); See “Preemption Responses” from Page 21.
Preemption CR1:818-19. agreements with its FECs. Denied as to claims
CR3:1369-70,
challenging fees that were not incurred during that
¶¶ 104-05.
period. CR3:1444 (July 8, 2016 Order), 1SuppCR9:4211.

23