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NOT FOR PUBLICATION UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT ALMONT AMBULATORY SURGERY CENTER, LLC, a California limited liability company; BAKERFIELD SURGERY INSTITUTE, LLC, a California limited liability company; CIRO SURGERY CENTER, LLC, a California limited liability company; EAST BAY AMBULATORY SURGERY, LLC, a California limited liability company; MODERN INSTITUTE OF PLASTIC SURGERY & ANTIAGING, INC., a California corporation; NEW LIFE SURGERY CENTER, LLC, DBA Beverly Hills Surgery Center, a California limited liability company; ORANGE GROVE SURGERY CENTER, LLC, a California limited liability company; SAN DIEGO AMBULATORY SURGERY CENTER, LLC, a California limited liability company; SAN JOAQUIN VALLEY SURGERY CENTER, LLC, a California limited liability company; SKIN CANCER & RECONSTRUCTIVE SURGERY SPECIALIST OF BEVERLY HILLS, INC., a California corporation; VALENCIA AMBULATORY SURGERY CENTER, LLC, a California limited liability company; WEST HILLS No. 17-55301 D.C. No. 2:14-cv-02139-MWF-VBK MEMORANDUM * FILED JUN 11 2019 MOLLY C. DWYER, CLERK U.S. COURT OF APPEALS * This disposition is not appropriate for publication and is not precedent except as provided by Ninth Circuit Rule 36-3.

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Page 1: NOT FOR PUBLICATIONcdn.ca9.uscourts.gov/datastore/memoranda/2019/06/11/17-55301.pdfJun 11, 2019  · ALMONT AMBULATORY SURGERY CENTER, LLC, a California limited liability company;

NOT FOR PUBLICATION

UNITED STATES COURT OF APPEALS

FOR THE NINTH CIRCUIT

ALMONT AMBULATORY SURGERYCENTER, LLC, a California limitedliability company; BAKERFIELDSURGERY INSTITUTE, LLC, aCalifornia limited liability company; CIROSURGERY CENTER, LLC, a Californialimited liability company; EAST BAYAMBULATORY SURGERY, LLC, aCalifornia limited liability company;MODERN INSTITUTE OF PLASTICSURGERY & ANTIAGING, INC., aCalifornia corporation; NEW LIFESURGERY CENTER, LLC, DBA BeverlyHills Surgery Center, a California limitedliability company; ORANGE GROVESURGERY CENTER, LLC, a Californialimited liability company; SAN DIEGOAMBULATORY SURGERY CENTER,LLC, a California limited liabilitycompany; SAN JOAQUIN VALLEYSURGERY CENTER, LLC, a Californialimited liability company; SKIN CANCER& RECONSTRUCTIVE SURGERYSPECIALIST OF BEVERLY HILLS,INC., a California corporation;VALENCIA AMBULATORY SURGERYCENTER, LLC, a California limitedliability company; WEST HILLS

No. 17-55301

D.C. No. 2:14-cv-02139-MWF-VBK

MEMORANDUM*

FILEDJUN 11 2019

MOLLY C. DWYER, CLERKU.S. COURT OF APPEALS

* This disposition is not appropriate for publication and is not precedentexcept as provided by Ninth Circuit Rule 36-3.

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SURGERY CENTER, LLC, a Californialimited liability company; PALMDALESURGERY CENTER, LLC, a Californialimited liability company;INDEPENDENT MEDICAL SERVICES,INC., a California corporation,

Plaintiffs-Appellants,

v.

UNITEDHEALTH GROUP, INC.;UNITED HEALTHCARE SERVICES,INC.; UNITEDHEALTHCAREINSURANCE COMPANY;OPTUMINSIGHT, INC.; AMERICANASSOCIATION OF RETIRED PERSONS(AARP), a District of Columbiacorporation; AARP EMPLOYEESWELFARE PLAN; ACCENTURE, LLP, aDelaware limited liability partnership;ACCOR NORTH AMERICA, INC., aDelaware corporation; ACCOR NORTHAMERICA, INC. GROUP INSURANCEPLAN, a Delaware corporation;ACTAVIS, INC., a Delaware corporation;ACTAVIS HEALTH AND WELFAREPLAN; ACUSHNET COMPANY, aDelaware corporation; ACUSHNETCOMPANY CONSOLIDATED HEALTHAND WELFARE PLAN; ADPTOTALSOURCE, INC., a Floritacorporation; ADP TOTALSOURCE INC.HEALTH AND WELFARE PLAN;AEGIS MEDIA AMERICAS, INC., aDelaware corporation; AEGIS MEDIANORTH AMERICA WELFARE

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BENEFIT PLAN; AEGON USA, LLC, anIowa limited liability company; AEGONCOMPANIES FLEXIBLE BENEFITSPLAN; AERA ENERGY SERVICESCOMPANY, a Delaware corporation;AERA ENERGY SERVICES COMPANYMEDICAL BENEFITS PLAN; AIRLIQUIDE USA, LLC, a Delaware liabilitycompany; AIR LIQUIDE USA, LLCGROUP BENEFITS PLAN; AKZONOBEL, INC., a Delaware corporation;AKZO NOBEL, INC. SALARIEDEMPLOYEES GROUP BENEFITSPROGRAM; ALCON LABORATORIES,INC., a Delaware corporation; ALCONLABORATORIES, INC. VOLUNTARYEMPLOYEES BENEFICIARYASSOCIATION TRUST; ALLAMERICAN CONTAINERS, INC.; ALLAMERICAN CONTAINERS INC.WELFARE BENEFIT PLAN;ALLSTATE INSURANCE COMPANY;ALLSTATE CAFETERIA PLAN;ALPHA MECHANICAL, INC.; ALPHAMECHANICAL HEATING & AIRCONDITIONING INC. HEALTHINSURANCE PLAN; ALTECINDUSTRIES, INC.; AMERICANAIRLINES, INC.; GROUP LIFE ANDHEALTH BENEFITS PLAN;AMERICAN BUILDING SUPPLY, INC.;AMERICAN BUILDING SUPPLY, INC.EMPLOYEES BENEFIT PLAN;AMERICAN FINANCIAL GROUP, INC.;AMERICAN FINANCIAL GROUP, INC.GROUP WELFARE BENEFIT PLAN;AMERICAN INTERNATIONAL

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GROUP, INC.; AMERICANINTERNATIONAL GROUP INC.MEDICAL PLAN; ANHEUSER-BUSCHCOMPANIES, INC.; ANHEUSER-BUSCH EMPLOYEES BENEFITTRUST; ANIXTER, INC.; ANIXTERINC. GROUP INSURANCE; ANN, INC.;ANN, INC. WELFARE BENEFITSPLAN; ANSCHUTZ ENTERTAINMENTGROUP, INC.; AEG EMPLOYEEHEALTH & WELFARE PLAN;APARTMENT MANAGEMENTCONSULTANTS BENEFITS PLAN;APL LIMITED; WELFARE PLAN FOREMPLOYEES OF APL LIMITED;APPLE, INC. HEALTH AND WELFAREBENEFIT PLAN; APPLE AMERICANGROUP LLC; APPLE AMERICANGROUP LLC SECTION 125 PLAN;APTCO, LLC; ARDENT SERVICES,LLC; ARDENT SERVICES, LLCMEDICAL PLAN; AT&T INC.; AT&TUMBRELLA BENEFIT PLAN; AT&TMOBILITY LLC; CINGULARWIRELESS MEDICAL PLUS PLAN;ATI SYSTEMS INTERNATIONAL,INC.; ATI SYSTEMS; AUCTION.COM,LLC; AUCTION.COM EMPLOYEEBENEFIT PLAN; AUTOMATIC DATAPROCESSING, INC.; AUTOMATICDATA PROCESSING, INC. FLEX 2000PLAN; AVON PRODUCTS, INC.;AVON PRODUCTS, INC. MEDICALPLAN FOR ACTIVE EMPLOYEES;BAKER HUGHES INC.; BAKERHUGHES, INC. WELFARE BENEFITSPLAN; BARNES & NOBLE INC.;

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BARNES & NOBLE INC.COMPREHENSIVE MEDICAL ANDDENTAL PLAN; BAUSCH & LOMBINCORPORATED; BAUSCH & LOMBCOMPREHENSIVE MEDICAL PLAN;BAYSIDE MANAGEMENTCOMPANYLLC EMPLOYEE BENEFITPLAN; BAYSIDE MANAGEMENTCOMPANY, LLC; BBA AVIATIONUSA, INC.; BBA AVIATION, INC.BENEFIT PLAN; BECTON DICKINSONAND COMPANY GROUP LIFE ANDHEALTH PLAN; BECTON,DICKINSON AND COMPANY;BELMONT VILLAGE, LP; BELMONTVILLAGE LP HEALTHCAREBENEFITS PLAN; BEST BUY CO. INC.;BEST BUY FLEXIBLE BENEFITSPLAN; BEST MEDICALINTERNATIONAL, INC.; BESTMEDICAL INTERNATIONAL BENEFITPLAN; BLACK BOX NETWORKSERVICES, INC.; BLACK BOXNETWORK SERVICES GROUPMEDICAL PLAN; BMW OF NORTHAMERICA, LLC; BMW OF NORTHAMERICA LLC HEALTH ANDWELFARE PLANS; BNSF RAILWAYCOMPANY; BNSF RAILWAYCOMPANY FLEXIBLE BENEFITPLAN; BOAT AMERICACORPORATION; BOAT U.S. HEALTHPLAN; BOSTON MARKETCORPORATION; BOSTON MARKETCORPORATION HEALTH ANDWELFARE PLAN; BRADYCORPORATION; W.H. BRADY CO.

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INSURED BENEFITS PLAN;ADVANCE/NEWHOUSEPARTNERSHIP HEALTH BENEFITSPLAN; BRINKER SERVICESCORPORATION; BRINKERINTERNATIONAL, INC. WELFAREBENEFIT PLAN; BRINK’SINCORPORATED; THE BRINKSCOMPANY COMPREHENSIVEHEALTH AND WELFARE PLAN;BUCA RESTAURANTS 2, INC.; BUCAINC. HEALTH CARE BENEFIT PLAN;BUILDING MATERIALSCORPORATION OF AMERICA; GAFMATERIALS CORPORATIONWELFARE BENEFIT PLAN; BUPAWORLDWIDE CORPORATION; BUPAWORLDWIDE CORPORATIONHEALTH & BENEIFTS PLAN; BWAYCORPORATION; BWAYCORPORATION COMPREHENSIVEMEDICAL PLAN; CALIBER HOMELOANS, INC.; VERICRESTFINANCIAL, INC. WELFARE ANDBENEFITS PLAN; CALIFORNIACHARTER SCHOOLS ASSOCIATION;CCSA EMPLOYEE BENEFITWELFARE TRUST C/O BRMS;CBEYOND COMMUNICATIONS LLC;CBEYOND COMMUNICATIONSHEALTH AND WELFARE PLAN; CBIZMHM, LLC; CBIZ INC. GROUPHEALTH AND WELFARE PLAN; CBSCORPORATION; CBS HEALTH ANDWELFARE BENEFITS PLAN; CECENTERTAINMENT CONCEPTS LP;CEC ENTERTAINMENT WELFARE

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BENEFIT PLAN; CENTRAL PARKINGSYSTEM; CENTRAL PARKINGSYSTEM HEALTH AND WELFAREPLAN; CENTRIC GROUP LLC;CENTRIX GROUP HOSPITAL PLAN;CGX ENERGY, LLC; COGENTRIXENERGY, LLC GROUP INSURANCEPLAN; C.H. ROBINSON COMPANY,INC.; C.H. ROBINSON COMPANYGROUP HEALTH MAJOR MEDICALPLAN; CHARLOTTE RUSSE, INC.;CHARLOTTE RUSSE HOLDING, INC.WELFARE BENEFIT PLAN;CHARMING SHOPPES, INC.;CHARMING SHOPPES, INC. MEDICALPLAN; CHEVRON CORPORATION;CHEVRON CORPORATION OMNIBUSHEALTH CARE PLAN; CHILDDEVELOPMENT INCORPORATED;CDI GROUP WELFARE PLAN;CITIGROUP MANAGEMENT CORP.;CITIGROUP HEALTH BENEFIT PLAN;CNA FINANCIAL CORPORATIONHEALTH AND GROUP BENEFITSPROGRAM; COGNIZANTTECHNOLOGY SOLUTIONS CORP.;COGNIZANT HEALTH & WELFAREBENEFIT PLAN; COMFORT SYSTEMSUSA, INC.; COMFORT SYSTEMS USAHEALTH & WELFARE PLAN;COMMSCOPE, INC. OF NORTHCAROLINA; COMMSCOPE WELFAREBENEFIT PLAN; CONESYSEMPLOYEE BENEFIT PLAN;CONMED CORPORATION; CONMEDCORPORATION HEALTHCARE PLAN;CONSTRUCTION TEAMSTERS

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SECURITY FUND FOR SOUTHERNCALIFORNIA; COURT BUSINESSSERVICES CORPORATION; COURTBUSINESS SERVICES CORPORATIONGROUP INSURANCE PLAN;COVIDIEN, LP; COVIDIEN HEALTH &WELFARE BENEFITS PLAN; CREDITSUISSE SECURITIES (USA), LLC;CREDIT SUISSE SECURITIES (USA)LLC GROUP HEALTH CARE PLAN;CROWLEY MARITIMECORPORATION; CROWLEYMARITIME CORPORATIONWELFARE HEALTH LIFE &ACCIDENTAL DEATH &DISMEMBERMENT PLANS; CYTECINDUSTRIES, INC.; CYTECINDUSTRIES INC. HEALTH ANDWELFARE PLAN; DANAHERCORPORATION; DANAHERCORPORATION & SUBSIDIARIESMEDICAL PLAN; DARDEN GROUPLIFE AND HEALTH BENEFIT PLANFOR SALARIED EMPLOYEES;DARDEN RESTAURANTS INC.;DEERE & COMPANY; DELOITTE &TOUCHE WELFARE BENEFIT PLAN;DELOITTE, LLP; DELTA AIR LINES,INC.; DELTA FAMILY-CAREMEDICAL PLAN; DENSO SALESCALIFORNIA, INC.; DENSO SALESCALIFORNIA, INC. GROUPINSURANCE PLAN; DIAGEO NORTHAMERICA, INC.; DIAGEO NORTHAMERICA, INC. MEDICAL CARE ANDLIFE INSURANCE PLAN FORSALARIED AND RETIRED

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EMMPLOYEES; DISCOVERYCOMMUNICATIONS WELFAREBENEFIT PLAN; DISCOVERYCOMMUNICATIONS, LLC; DOLLARTHRIFTY AUTOMOTIVE GROUP,INC.; DOLLAR THRIFTYAUTOMOTIVE GROUP, INC.WELFARE BENEFIT PLAN; JOHNDEERE FLEXIBLE BENEFITS PLAN;PRODUCERS’ HEALTH BENEFITSPLAN; DS WATERS OF AMERICA,INC.; DS WATERS OF AMERICA, INC.HEALTH AND WELFARE PLAN; DR.PEPPER SNAPPLE GROUP, INC.; DR.PEPPER SNAPPLE GROUP, INC.HEALTH PLAN; DRIVETIMEAUTOMOTIVE GROUP, INC.;DRIVETIME WELFARE BENEFITPLAN; ECOLAB HEALTH ANDWELFARE BENEFITS PLAN; ECOLAB,INC.; EDWARD D. JONES & CO.EMPLOYEES HEALTH ANDWELFARE PROGRAM; EDWARD D.JONES & CO., L.P.; EMCOR GROUP,INC.; EMCOR GROUP, INC.EMPLOYEE WELFARE PLAN; ENSIGNUS DRILLING EMPLOYEE BENEFITPLAN; ENSIGN UNITED STATESDRILLING, INC.; ENTERPRISEHOLDINGS HOSPITAL INSURANCEPLAN; ENTERPRISE HOLDINGS, INC.;ENVIRONMENTAL SYSTEMSRESEARCH INSTITUTE, INC.;ENVIRONMENTAL SYSTEMSRESEARCH INSTITUTE, INC. LIFELTD. TRAVEL ACCIDENT, VISIONSERVICE, MEDICAL DENTAL;

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EQUITY RESIDENTIAL PROPERTIESTRUST GROUP INSURANCE PLAN;EQUITY RESIDENTIAL SERVICES,LLC; ERNST & YOUNG MEDICALPLAN; ERNST & YOUNG, LLP;ESSILOR OF AMERICA, INC.;ESSILOR OF AMERICA, INC.EMPLOYER WELFARE BENEFITPLAN; ESTEE LAUDER, INC.;EXPERIAN INFORMATIONSOLUTIONS, INC.; EXPERIANINFORMATION SOLUTIONS, INC.HEALTH AND WELFARE PLAN;EXPRESS MESSENGER SYSTEMS,INC.; EXPRESSJET AIRLINES, INC.;EXPRESSJET AIRLINES, INC.CONSOLIDATED WELFARE BENEFITPLAN; FARMERS GROUP, INC.;FARMERS GROUP, INC. EMPLOYEEPREPAID BENEFIT PLAN; ESTEELAUDER COMPANIES, INC.; FC USAINC. BENEFITS; FC USA, INC.; FNPCHEALTH AND WELFARE PLAN;FIDELITY BROKERAGE SERVICES,LLC; FIDELITY GROUP EMPLOYEESMEDICAL, DENTAL AND CAFETERIAPLAN; FIFTH & PACIFIC COMPANIES,INC.; FINRA DISPUTE RESOLUTION,INC.; FINRA EMPLOYEE GROUPMEDICAL; FISERV, INC.; FISERV,INC. WELFARE BENEFIT PLAN; FIVESTAR QUALITY CARE; FIVE STARQUALITY CARE-CA, INC.;FLEXTRONICS EMPLOYEE BENEFITSPLAN; FLEXTRONICSINTERNATIONAL USA, INC.; FOOTLOCKER RETAIL, INC.; FOOT

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LOCKER WELFARE BENEFITPAYMENT PLAN; FOXENTERTAINMENT GROUP, INC.; FOXHEALTH PLAN; FUGATE AVIATION,INC.; FUGATE ENTERPRISESEMPLOYEE WELFARE BENEFITPLAN; FUTURE ELECTRONICSCORP.; FUTURE ELECTRONICSCORP. GROUP INSURANCE PLAN;G4S SECURE SOLUTIONS, INC.; GAPINC. HEALTH AND LIFE PLAN; GEGLOBAL HEALTH PLAN; GF HEALTHPRODUCTS, INC.; GP STRATEGIESCORPORATION; GP STRATEGIESCORPORATION WELFARE BENEFITPLAN; GAP, INC.; GENERALELECTRIC COMPANY; GENERALPARTS, INC.; GENERAL PARTS, INC.EMPLOYEE BENEFITS PLANMEDICAL INSURANCE; GENONENERGY GROUP WELFAREBENEFITS PLAN; GENON ENERGYSERVICES, LLC; GENPACT PROCESSSOLUTIONS, LLC; GENPACTWELFARE BENEFIT PLAN; GEORGFISCHER EMPLOYEE BENEFIT PLAN;GEORG FISCHER SIGNET, LLC;GEORGIA-PACIFIC LLC;GLAXOSMITHKLINE HEALTH ANDWELFARE BENEFITS PLAN FOR USEMPLOYEES; GLAXOSMITHKLINE,LLC; GREAT-WEST LIFE & ANN INSFLEXIBLE BENEFIT PLAN; GREAT-WEST LIFE & ANNUITY INSURANCECOMPANY; WELFARE TRUST FORG4S SECURE SOLUTIONS USA INC.AND AFFILIATES; GTECH

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CORPORATION; GTECHCORPORATION PARTICIPANTBENEFIT PLAN; GREYSTARMANAGEMENT SERVICES, LP;GREYSTAR MANAGEMENTSERVICES, LLP; HD SUPPLY HEALTHAND WELFARE PROGRAM; HDSUPPLY, INC.; HEALTH INVENTURESHEALTH AND WELLNESS BENEFITPLAN; HEALTH INVENTURES, LLC;HEARTLAND AUTOMOTIVESERVICES, INC.; HEARTLANDAUTOMOTIVE SERVICES, INC.GROUP MEDICAL AND LIFE PLAN;HEWLETT-PACKARD COMPANY;HEWLETT-PACKARD COMPANYHEALTH MAINTENANCEORGANIZATION PROGRAM;HONEYWELL INTERNATIONAL INC.BENEFIT PLAN; HONEYWELLINTERNATIONAL, INC.; HOT TOPIC,INC.; HOT TOPIC, INC. HEALTH ANDWELFARE PLAN; HOTELS AB, LLC;THE STANDARD/HOTELS ABWELFARE BENEFIT PLAN;HUHTAMAKI AMERICAS, INC.;HUHTAMAKI AMERICAS, INC.GROUP INSURANCE PLAN;IMORTGAGE.COM, INC. CAFETERIAPLAN; IMORTGAGE.COM. INC.; INGAMERICAS WELFARE BENEFITSPLAN; ING NORTH AMERICAINSURANCE CORPORATION;INFORMA USA, INC.; INFORMA USA,INC. AND SUBSIDIARIESINSURANCE PLAN; INGRAM MICRO,INC.; INSPERITY GROUP HEALTH

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PLAN; INSPERITY HOLDINGS, INC.;INSTANT WEB, INC.; INTEGRALIFESCIENCES CORP.MEDICAL/PRESCRIPTION, DENTALAND STD PLAN; INTEGRALIFESCIENCES CORPORATION;INTELSAT CORPORATION;INTELSAT GROUP WELFAREBENEFITS PLAN; INTER-RAILTRANSPORT, INC.; INTER-RAIL, INC.EMPLOYEE HEALTH PLAN;INTERCARE HOLDINGS, INC.;INTERCARE HOLDINGS, INC.HEALTH & WELFARE PLAN; ISTANTWEB INC. AND SUBSIDIARYMEDICAL BENEFIT PLAN; IBMMEDICAL & DENTAL PLAN FORREGULAR AND PART-TIMEEMPLOYEES; INX INTERNATIONALGROUP MEDICAL/DENTAL PLAN;INX INTERNATIONAL INK CO.;INTERNATIONAL ALUMINUMCORPORATION; INTERNATIONALALUMINUM CORPORATION HEALTHAND WELFARE PLANS;INTERNATIONAL BUSINESSMACHINES CORPORATION;INTERNATIONAL PAPER COMPANY;INTERNATIONAL PAPER GROUPINSURANCE PLAN; INTERNATIONALSPEEDWAY CORPORATION;INTERNATIONAL SPEEDWAYCORPORATION WELFARE BENEFITPLAN; INTERSTATE HOTELS &RESORTS BENEFITS PROGRAM;INTERSTATE HOTELS & RESORTS,INC.; J.C. PENNEY CORPORATION,

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INC.; J.C. PENNEY CORPORATION,INC. HEALTH & WELFARE BENEFITSPLAN; JPMORGAN CHASE & CO.;JACK IN THE BOX, INC.; JACK IN THEBOX, INC. CREW EMPLOYEESHEALTH & WELFARE PLAN;JACKSON LEWIS LLP WELFAREPLAN; JACKSON LEWIS, LLP;JACOBS ENGINEERING GROUP, INC.;JACOBS ENGINEERING GROUP, INC.EMPLOYEE GROUP INSURANCEPLAN; JETBLUE AIRWAYSCORPORATION; JETBLUE AIRWAYSGROUP HEALTH INSURANCE PLAN;THE JPMORGAN CHASE HEALTH &PROTECTION PLAN FOR ACTIVEEMPLOYEES; JONES LANG LASALLEAMERICAS, INC.; JONES LANGLASALLE GROUP BENEFITS PLAN;KELLY MITCHELL GROUP INC.MEDICAL PLAN; KELLY MITCHELLGROUP, INC.; EMPLOYEE BENEFITPLAN OF THE COMPASS GROUPUSA, INC.; KLA-TENCORCORPORATION GROUP INSURANCEPLAN; KLA-TENCOR CORPORATION;KMI FLEXIBLE BENEFIT PLAN;KINDER MORGAN G.P., INC.;KINETIC CONCEPTS, INC.; KINETICSCONCEPTS INC. EMPLOYEEBENEFITS TRUST; KONICA MINOLTABUSINESS SOLUTIONS USA, INC; LBRANDS, INC.; L’OREAL USA S/D,INC.; L’OREAL USA, INC.COMPREHENSIVE MEDICAL PLAN;LA-Z-BOY INCORPORATED; LA-Z-BOY INCORPORATED MEDICAL

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PLAN; LARSON-JUHL US LLCWELFARE PLAN; LARSON-JUHL USLLC WELFARE PLAN; LARSON-JUHLUS, LLC; LEAVITT GROUP AGENCYASSOCIATION; LEAVITT GROUPAGENCY ASSOCIATION HEALTHBENEFIT PLAN; LEVEL 3COMMUNICATIONS, INC. WELFAREBENEFIT PLAN; LEVEL 3COMMUNICATIONS, LLC; LEVYRESTAURANTS, INC.; LIMITEDBRANDS, INC. HEALTH ANDWELFARE BENEFITS PLAN; LINDENORTH AMERICA, INC.; LINDENORTH AMERICA, INC. INSURANCEPLAN; MISA GROUP BENEFIT PLANS;MAERSK INC. ACTIVE NONUNIONHEALTH AND WELFARE PLAN;MAERSK, INC.; MAKO SURGICALCORP HEALTH AND WELFAREPLAN; MARUBENI ITOCHU STEELAMERICA, INC.; HEALTH CARE PLANOF THE EMPLOYEES OF MCM CORP.;MCM CORPORATION; MARY KAY,INC.; MAY KAY, INC.COMPREHENSIVE EMPLOYEEHEALTH AND WELFARE PLAN;MCMASTER-CARR SUPPLYCOMPANY; MCMASTER-CARRSUPPLY COMPANY GROUPINSURANCE PROGRAM; MEDCOHEALTH SOLUTIONS, INC.; MEDCOHEALTH SOLUTIONS, INC. WELFAREBENEFIT PLAN; MEDEGEN WELFAREBENEFIT PLAN; MEDEGEN, INC.;MEDICAL SPECIALTIESDISTRIBUTORS, LLC; MEDICAL

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SPECIALTIES DISTRIBUTORS, LLCGROUP BENEFIT PLAN;MIDAMERICAN ENERGY COMPANY;MIDAMERICAN ENERGY COMPANYWELFARE BENEFIT PLAN; MILLARDREFRIGERATED SERVICES, INC.;MILLARD REFRIGERATEDSERVICES, INC. GROUP MAJORMEDICAL; MOBILE MINI, INC.;MOBILE MINI, INC. BENEFIT PLAN;MOCEAN HEALTH AND WELFAREBENEFITS PLAN; MOCEAN, LLC;MONAVIE, LLC; MONAVIE, LLCFRINGE BENEFIT PLAN; WELFAREBENEFIT PLAN FOR EES. OFMETROPOLITAN LIFE; AMPLAN, THEAMTRAK UNION BENEFITS PLAN;GROUP INSURANCE PLAN FOREMPLOYEES OF NEC ANDAFFILIATES; HEALTH INSURANCEPLAN OF MULTIPLAN, INC.;MONROVIA NURSERY COMPANY;MONROVIA NURSERY COMPANYEMPLOYEE BENEFIT PLAN;MOUNTAIN VALLEY EXPRESS CO.INC. WELFARE BENEFIT PLAN;MOUNTAIN VALLEY EXPRESS CO.,INC.; MULTIPLAN, INC.; MYRIADGENETICS, INC.; MYRIAD GENETICS,INC. WELFARE BENEFIT PLAN; NCHCORPORATION; NCH CORPORATIONEMPLOYEE LIFE AND HEALTHBENEFIT PLAN; NEC CORPORATIONOF AMERICA; NPL CONSTRUCTIONCO.; NPL CONSTRUCTION CO.EMPLOYEE HEALTH BENEFIT PLAN;NRC PAYROLL MANAGEMENT

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HEALTH AND WELFARE PLAN; NRCPAYROLL MANAGEMENT, LLC;NATIONAL CAPTIONING INSTITUTE,INC.; NATIONAL CAPTIONINGINSTITUTE, INC. HEALTH &WELFARE BENEFITS PLAN;NATIONAL MENTOR HOLDINGS,LLC; NATIONAL MENTORHOLDINGS, LLC FLEXIBLE BENEFITPLAN; NATIONAL RAILROADPASSENGER CORPORATION;NATIONAL RAILROAD PASSENGERCORPORATION CHOICEPLUSCAFETIRIA PLAN; NATIONSTARMORTGAGE GROUP HEALTH ANDWELFARE BENEFIT PLAN;NATIONSTAR MORTGAGE LLC;NEFF RENTAL LLC HEALTH &WELFARE PLAN; NEFF RENTAL,LLC; NETAPP, INC.; NETAPP, INC.GROUP HEALTH PLAN; NEW BREEDCORPORATE SERVICES, INC.; NEWBREED CORPORTE SERVICES INC.WELFARE BENEFIT PLAN; NIKE,INC.; NIKE, INC. GROUP INSURANCEPLAN; NORTHROP GRUMMANCORPORATION GROUP BENEFITSPLAN; NORTHROP GRUMMANCORP.; NOVARTISPHARMACEUTICALS CORP.WELFARE BENEFITS PLAN;NOVARTIS PHARMACEUTICALSCORPORATION; NURSEFINDERS,INC.; NURSEFINDERS, LLC; ALCANSALARIED WELFARE BENEFITSPROGRAM; GROUP BENEFITS PLANFOR EMPLOYEES OF PARSONS

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CORPORATION & DESIGNATEDSUBSIDIARIES; GROUP INSURANCEPLAN HOURLY AND SALARIEDEMPLOYEES OF PARKER HANNIFINCORP.; OCLC EMPLOYEE WELFAREBENEFIT PLAN; OCLC ONLINECOMPUTER LIBRARY CENTER, INC.;OLD DOMINION EMPLOYEEBENEFIT PLAN; OLD DOMINIONFREIGHT LINE, INC.; OLINCORPORATION; OLINMEDICAL/DENTAL PLAN; ORIX USACORPORATION; ORIX USACORPORATION WELFARE PLAN;OSRAM SYLVANIA, INC.; OSRAMSYLVANIA, INC. PLAN FOR GROUPINSURANCE; PANALPINA, INC.;PANALPINA, INC. WELFAREBENEFITS PLAN; PARKER-HANNIFINCORPORATION; PARSONSCORPORATION; PAYLESSSHOESOURCE, INC.; PAYLESSSHOESOURCE, INC. MEDICAL PLAN;PECHINEY PLASTIC PACKAGING,INC.; PENTAIR, INC.; PENTAIR, INC.ACTIVE EMPLOYEE WELFARE PLAN;PEFORMANCE FOOD GROUP INC.EMPLOYEE BENEFITS PLAN;PERFORMANCE FOOD GROUP, INC.;PERKINS FLEXIBLE BENEFITS PLAN;PEROT SYSTEMS CORPORATION;PEROT SYSTEMS CORPORATIONHEALTH WRAP PLAN; PETCOANIMAL SUPPLIES INC. GROUPBENEFIT PLAN AND TRUST; PETERKIEWIT SONS’, INC.; PETER KIEWITSONS’, INC. HEALTH AND WELFARE

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PLAN; PETSMART SMARTCHOICESBENEFIT PLAN; PETSMART, INC.;PFIZER MEDICAL PAN; PFIZER, INC.;PHARMACEUTICAL PRODUCTDEVELOPMENT, LLC;PHARMACEUTICAL PRODUCTDEVELOPMENT, LLC WELFAREBENEFIT PLAN; PLAINS ALLAMERICAN GP LLC EMPLOYEEBENEFIT PLAN; PLAINS ALLAMERICAN GP, LLC; PLATINUMHOME MORTGAGE CORPORATION;GROUP INSURANCE PLAN FOREMPLOYEES OF REXAM, INC.; PPSHOLDINGS, INC.; PPS HOLDINGS,INC. EMPLOYEE BENEFIT PLAN; PSCENVIRONMENTAL SERVICES, LLC;PSC, LLC GROUP WELFAREBENEFITS PLAN; PSN USAHOLDINGS, INC.; PSN USAHOLDINGS, INC. WELFARE BENEFITPLAN; PLAYBOY ENTERPRISESINTERNATIONAL, INC.; PLAYBOYHEALTH BENEFIT PLAN; PRADAUSA CORP.; PRADA USACORPORATION WELFARE BENEFITPLAN; PRECYSE SOLUTIONS, INC.;PRIME ADMINISTRATION LLCCONSOLIDATED HEALTH &WELFARE PLAN; PRIMEADMINISTRATION, LLC; PROBUILDHOLDINGS, INC.; PROBUILDHOLDINGS, INC. WELFARE BENEFITPLAN; PROCTOR & GAMBLE RHD,INC.; PROGRESSIVE LOGISTICSSERVICES, LLC; PROGRESSIVELOGISTICS SERVICES, LLC MEDICAL

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& LIFE INSURANCE BENEFITS PLAN;QBE FIRST GROUP HEALTH ANDWELFARE PLAN; QBE FIRSTINSURANCE AGENCY, INC.;QUANTUM CORPORATION;QUANTUM CORPORATION HEALTHAND WELFARE PLAN; RAINBOWUSA, INC.; RAINBOW USA, INC.MEDICAL PLAN; RAYTHEONCOMPANY; RAYTHEON HEALTHBENEFITS PLAN; RED WING SHOECOMPANY FLEXIBLE BENEFITPLAN; RED WING SHOE COMPANY,INC.; REXAM, INC.; TIRE CENTERS,LLC EMPLOYEE BENEFIT PLAN;TIRE CENTERS, LLC; TOSHIBAAMERICA INC. GROUP WELFAREBENEFIT PLAN; TOSHIBA AMERICA,INC; TOWERS WATSON AMERICA,LLC; TOWERS WATSON MEDICALPLAN; TRIBUNE COMPANY;TRIBUNE COMPANY BENEFITPROGRAM; TRINET HRCORPORATION; TUCKER ELLIS &WEST LLP WELFARE BENEFIT PLAN;TUCKER ELLIS, LLP; U.S. AUTOPARTS NETWORK, INC.; U.S.NURSING CORPORATION; UPMRAFLATAC, INC.; UPM-RAFLATAC,INC. HEALTH AND WELFAREBENEFIT PLAN; US AIRWAYSGROUP, INC.; US AUTO PARTSNETWORK INC. HEALTH ANDWELFARE BENEFIT PLAN; USNURSING CORP. EMPLOYEEBENEFIT PLAN; UNION BANKHEALTH BENEFIT PLAN; UNION

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BANK, N.A.; UNITED AIRLINESCONSOLIDATED WELFARE BENEFITPLAN; UNITED AIRLINES, INC.;UNIVISION COMMUNCATIONS, INC.;UNIVISION WELFARE BENEFITSPLAN; URBAN DECAY COSMETICSHEALTH AND WELFARE PLAN;URBAN DECAY COSMETICS, LLC;USA TRUCK INC. WELFARE BENEFITPLAN; USA TRUCK, INC.; UTISERVICES, INC.; UTI SERVICES, INC.WELFARE BENEFITS PLAN;VALEANT PHARMACEUTICALSINTERNATINAL GROUP WELFAREPLAN; VALEANTPHARMACEUTICALSINTERNATIONAL; VELOCITYEXPRESS LLC FLEXIBLE BENEFITSPLAN; VELOCITY EXPRESS, LLC;VEOLIA ENVIRONMENTALSERVICES NORTH AMERICA CORP.EMPLOYEE HEALTH BENEFIT PLAN;VEOLIA ENVIRONMENTALSERVICES NORTH AMERICA, LLC;VERIZON COMMUNICATIONS, INC.;VERIZON PLAN 550; VIATECHNOLOGIES, INC.; VIATECHNOLOGIES, INC. HEALTH ANDWELFARE PLAN; GROUP BENEFITSPLAN FOR EMPLOYEES OFWORLEYPARSONS CORPORATION;HEALTH & WELFARE BENEFITPLANS OF VULCAN MATERIALSCOMPANY; VIACOM HEALTH PLAN;VIACOM, INC.; VOLT INFORMATIONSCIENCES, INC.; VOLTINFORMATION SCIENCES, INC. AND

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AFFILIATE EMPLOYEE WELFAREBENEFITS PLAN; VULCANMATERIALS COMPANY; W. W.GRAINGER INC. GROUP BENEFITPLAN I; W. W. GRAINGER, INC.;WACHOVIA CORPORATION HEALTHAND WELFARE PLAN; WACHOVIAFINANCIAL SERVICES, INC.;WALMART INC.; WAL-MARTSTORES, INC. ASSOCIATES HEALTHAND WELFARE PLAN; WE’REREADY TO ASSEMBLE; WE’REREADY TO ASSEMBLE, INC.; WELLSFARGO & CO. HEALTH PLAN; WELLSFARGO & COMPANY; WESTWAYSSTAFFING SERVICES HEALTH PLAN;WESTWAYS STAFFING SERVICES,INC.; WHOLE FOODS MARKETCALIFORNIA, INC.; WHOLE FOODSMARKET, INC. CAFETERIA PLAN;WILLIAMS-SONOMA STORES, INC.;WILLIAMS-SONOMA, INC. HEALTH& WELFARE PLAN; WIPRO HEALTHAND WELFARE PLAN; WIPROLIMITED; WOLVERINE WORLDWIDE, INC.; WOLVERINEWORLDWIDE FLEXIBLE SPENDINGACCOUNT PLAN; WORLD TRAVELHOLDINGS, INC.; WORLD TRAVELHOLDINGS, INC. FLEXIBLE BENEFITPLAN; WORLEYPARSONSCORPORATION; WSA GROUP; WSAGROUP, INC.; WYNRIGHTCORPORATION; WYNRIGHTWELFARE BENEFIT PLAN; XETATECHNOLOGIES, INC.; XETATECHNOLOGIES, INC. WELFARE

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BENEFIT PLAN; YUM! BRANDS, INC.;YUM! BRANDS, INC. RESTAURANTEMPLOYEES GROUP INSURANCEPLAN; ZALE CORPORATION; ZALECORPORATION BENEFITS PLAN;TOWERS WATSON AMERICA, LLC;UNITEDHEALTH GROUP EMPLOYEEHEALTH BENEFIT PLAN;ACCENTURE UNITED STATESGROUP HEALTH PLAN;ADVANCE/NEWHOUSEPARTERNERSHIP; AEGONCOMPANIES MEDICAL PLAN;ALCATEL-LUCENT RETIREEWELFARE BENEFITS PLAN;ALCATEL-LUCENT USA, INC.;AMERICAS INC BENEFITPLUSFLEXIBLE BENEFITS PLAN; BIOMEDREALTY L.P.; BIOMED REALTY L.P.WELFARE BENEFITS PLAN;CROWLEY HOLDINGS, INC.;DARDEN GROUP LIFE AND HEALTHBENEFIT PLAN FOR HOURLYEMPLOYEES; DARDEN GROUP LIFEAND HEALTH BENEFIT PLAN FORSALARIED EMPLOYEES; DELOITTE& TOUCHE GROUP INSURANCEPLAN; DELTA ACCOUNT-BASEDHEALTHCARE PLAN; DENSO SALESCALIFORNIA, INC. GROUP LIFE,ACCIDENT, MEDICAL & DENTALINSURANCE; DIAGEO NORTHAMERICA, INC. MEDICAL CARE ANDLIFE INSURANCE PLAN FORHOURLY AND RETIREDEMPLOYEES; DIAGEO NORTHAMERICA, INC. MEDICAL CARE AND

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LIFE INSURANCE PLAN FORSALARIED AND RETIREDEMMPLOYEES; DIAGEO NORTHAMERICA, INC. MEDICAL CARE ANDLIFE INSURANCE PLAN FORHOURLY AND RETIREDEMPLOYEES; G6 HOSPITALITYGROUP INSURANCE PLAN ACTAVIS,INC.; HOLDINGS INC WELFAREHEALTH LIFE & ACCIDENTALDEATH & DISMEMBERMENT PLANS;INTERNATIONAL, INC.; JOHN DEEREHEALTH BENEFIT PLAN FOR WAGEEMPLOYEES; KATE SPADE &COMPANY; NATIONAL MEDICALCARE, INC.; NATIONAL MEDICALCARE, INC. GROUP MEDICAL,DENTAL, LIFE AND AD&D PLAN;THE BMS ENTERPRISES, INC.; THEBMS ENTERPRISES, INC. PLAN; THEESTAEE LAUDER COMPANIES, INC.;THE JOHN DEERE HEALTH BENEFITPLAN FOR SALARIED EMMPLOYEES;WELFARE BENEFITS PLAN;CROWLEY HOLDINGS, INC.WELFARE HEALTH LIFE &ACCIDENTAL DEATH &DISMEMBERMENT PLANS; TOWERSWATSON & CO.; BRIGHT HORIZONSCHILDREN’S CENTERS, LLC; BRIGHTHORIZONS FLEXIBLE BENEFITPLAN; BUCKEYE TECHNOLOGIESCOMPREHENSIVE HEALTH CAREPLAN; BUCKEYE TECHNOLOGIES,INC.; BUILD-A-BEAR WORKSHOP,INC.; BUILD-A-BEAR WORKSHOP,INC. WELFARE BENEFIT PLAN;

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EDGEWOOD MANAGEMENTCORPORATION; GLOBAL MAIL, INC.;GLOBAL MAIL, INC. WELFAREPLAN; MID-CITYFINANCIAL/EDGEWOODMANAGEMENT; PSI SERVICES, LLC;PSI SERVICES, LLC HEALTH ANDWELFARE BENEFITS PLAN; POLYAIRCORPORATION; POLYAIRCORPORATION FLEXIBLE BENEFITSPLAN; NATIONAL RAILWAYCARRIERS; NESTLE WATERS NORTHAMERICA HOLDINGS GROUPBENEFITS PLAN; NESTLE WATERSNORTH AMERICA, INC.; UNITEDTRANSPORTATION UNION HEALTH& WELFARE PLAN; W.W. GRAINGERINC. GROUP BENEFIT PLAN II;WINDSTREAM COMPREHENSIVEPLAN OF GROUP INSURANCE;WINDSTREAM CORPORATION; APLLIMITED MEDICAL WELFAREBENEFIT PLAN; HEWLETT-PACKARDCOMPREHENSIVE WELFAREBENEFITS PLAN; THE GAP, INC.; THEGAP, INC. HEALTH AND LIFE PLAN;DOES; CONESYS, INC.,

Defendants-Appellees.

Appeal from the United States District Courtfor the Central District of California

Michael W. Fitzgerald, District Judge, Presiding

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Submitted May 14, 2019**

Seattle, Washington

Before: O’SCANNLAIN and FRIEDLAND, Circuit Judges, and EZRA,*** DistrictJudge.

Plaintiff Almont Ambulatory Surgery Center, LLC along with twelve other

surgical centers and one physicians’ medical group (collectively “Almont”) appeal

four orders by the district court denying (1) Almont’s motion for relief from judgment

pursuant to Federal Rule of Civil Procedure 60(b), (2) Almont’s motion to disqualify

district court Judge Michael Fitzgerald, (3) Almont’s application to file documents in

support of the disqualification motion in camera, and (4) Almont’s motion for

reconsideration of the Rule 60(b) order pursuant to Federal Rule of Civil Procedure

59(e). Because the facts are known to the parties, we repeat them only as necessary

to explain our decision.

As an initial matter, the employee welfare plan defendants (collectively

“UnitedHealth”) argue that we lack jurisdiction to review the district court’s denial of

Almont’s Rule 60(b) motion, because such denial was not included in the notice of

appeal for this case. See Almont Ambulatory Surgery Ctr., LLC v. UnitedHealth Grp.,

* * The panel unanimously concludes this case is suitable for decisionwithout oral argument. See Fed. R. App. P. 34(a)(2).

* * * The Honorable David A. Ezra, United States District Judge for theDistrict of Hawaii, sitting by designation.

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Inc., No. 2:14-cv-02139-MWF-VBK, ECF Nos. 2056, 2058. Indeed, although

Almont timely appealed the order, the appeal was separately docketed and later

dismissed for failure to prosecute. See Almont Ambulatory Surgery Ctr., LLC v.

UnitedHealth Grp., Inc., No. 16-55844, ECF No. 122. Nevertheless, we can fairly

infer that Almont intended to appeal the Rule 60(b) order, and thus we can construe

the notice of appeal in this case as including it. See Lolli v. County of Orange, 351

F.3d 410, 414 (9th Cir. 2003) (citing Montes v. United States, 37 F.3d 1347, 1351 (9th

Cir. 1994)). Doing so would not prejudice UnitedHealth, who briefed the merits of

the issue. Consequently, we may exercise jurisdiction over the appeal of the Rule

60(b) order. See Lolli, 351 F.3d at 414.

Almont’s challenge to the court’s denial of the Rule 60(b) motion fails on the

merits. Almont’s proffered reasons for failing to retain counsel by the court’s

deadline are contradicted by the record and do not establish excusable neglect as

required by Rule 60(b). See Bateman v. U.S. Postal Serv., 231 F.3d 1220, 1222 (9th

Cir. 2000).

Almont next challenges the denial of its motion to disqualify presiding Judge

Michael W. Fitzgerald—a decision made by Judge Otis D. Wright II, to whom the

motion had been randomly assigned. But Almont’s theory—that Judge Fitzgerald had

an irreconcilable conflict of interest because (1) his brother, an Assistant United States

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Attorney for the Central District of California, allegedly supervised a criminal

investigation involving Almont’s managers and sabotaged Almont’s legal

representation, and (2) the government was a party to this case—finds no support in

the record. As Judge Wright properly found, the U.S. Attorney’s Office engaged in

no impropriety with respect to Almont’s representation. Furthermore, AUSA

Fitzgerald did not enter an appearance in this case, and the government was never a

party at any stage of the proceedings. Absent any factual support for its motion,

Almont has failed to show that disqualification was required under federal law or

applicable codes of judicial conduct. See, e.g., 28 U.S.C. § 455; Judicial Conference

of the United States, Committee on Codes of Conduct Advisory Op. No. 38. The

district court did not abuse its discretion by denying the motion.

Nor did the court abuse its discretion by denying Almont’s application to file

certain documents in support of its disqualification motion in camera. Although the

court summarily denied Almont’s application, we may “affirm on any basis supported

by the record,” even where “the district court did not explain its decision.” Allen v.

Bedolla, 787 F.3d 1218, 1222 (9th Cir. 2015); see also United States v. Morales, 720

F.3d 1194, 1201 (9th Cir. 2013). Here, in camera review of the documents that

formed the basis of the disqualification motion would have prevented the employee

plan defendants from mounting an effective defense to the motion in violation of their

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due process rights. See Yamada v. Nobel Biocare Holding AG, 825 F.3d 536, 544–46

(9th Cir. 2016). Consistent with the district court’s rulings on Almont’s previous

requests for in camera review, the court properly denied Almont’s application.

Finally, we reject Almont’s challenge to the denial of its Rule 59(e) motion.

Almont failed to identify legal error or relevant newly discovered evidence, and its

arguments for reconsideration largely repeated the arguments made in support of its

unsuccessful Rule 60(b) motion. See 389 Orange St. Partners v. Arnold, 179 F.3d

656, 665 (9th Cir. 1999). The court did not abuse its discretion by denying the

motion.1

AFFIRMED.

1 We deny Almont’s motion to file certain excerpts of record in camera andunder seal, filed with this court on March 26, 2018; its motions to supplement therecord on appeal and to file certain exhibits in camera and under seal, filed August 6,2018; and its request for judicial notice, filed May 14, 2019.

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Almont Ambulatory Surgery Center, LLC v. UnitedHealth Group, Inc., No. 17-55301

O’SCANNLAIN, Circuit Judge, specially concurring:

I concur in the judgment and in the court’s reasoning affirming the denial of

Almont’s motion for disqualification, application for in camera review, and motion

for reconsideration.

I respectfully disagree, however, with the conclusion that our court has

jurisdiction to review the district court’s Rule 60(b) order. In my view, the unique

procedural history of this case renders it distinguishable from Lolli: Almont’s appeal

of the Rule 60(b) order was docketed separately from its appeal of the other issues in

this case. Because Almont failed to include the Rule 60(b) order in its notices of

appeal for this case, I would hold that the Rule 60(b) order is not properly before us

and decline to review it. See Valadez-Lopez v. Chertoff, 656 F.3d 851, 859 n.2 (9th

Cir. 2011).

FILEDJUN 11 2019

MOLLY C. DWYER, CLERKU.S. COURT OF APPEALS