OptumRx, Inc. ("OptumRx"), a national pharmacy-benefits manager, entered into contracts with Dalton Drug Co., Inc., and Hartford Pharmacy, LLC ("the Pharmacies") in 2015. These contracts included an arbitration provision for resolving disputes. In December 2021, the Pharmacies notified OptumRx of disputes regarding alleged fraudulent pricing and reimbursement schemes. After a failed resolution attempt via a telephone call in March 2022, OptumRx filed complaints in the Geneva Circuit Court seeking a declaratory judgment to enforce the arbitration provision.
The Geneva Circuit Court consolidated the actions and denied the Pharmacies' motion to dismiss, which argued that no justiciable controversy existed. OptumRx then moved for summary judgment, asserting that the Pharmacies' refusal to arbitrate created a justiciable controversy. The Pharmacies opposed, denying refusal to arbitrate and reiterating the lack of a justiciable controversy. The trial court granted summary judgment in favor of OptumRx, ordering arbitration.
The Supreme Court of Alabama reviewed the case and determined that no justiciable controversy existed when OptumRx filed its actions. The court noted that the Pharmacies had up to a year to decide whether to pursue arbitration, and OptumRx's rights had not been "frustrated or affected" at the time of filing. Consequently, the trial court lacked subject-matter jurisdiction, rendering its summary judgment void. The Supreme Court of Alabama reversed the trial court's judgment and remanded the case with instructions to dismiss the actions without prejudice. View "Dalton Drug Co., Inc. v. OptumRx, Inc." on Justia Law
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