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Barbour judge presiding over $6M suit

The Inter-Mountain photo by Haley Gordon Barbour County Circuit Judge Shawn D. Nines listens to oral arguments during a civil lawsuit hearing in the Barbour County Courthouse in Philippi Tuesday.

PHILIPPI — Attorneys representing multiple insurance companies from across the country were in Barbour County Circuit Court Tuesday morning as Judge Shawn D. Nines considered oral arguments in a civil lawsuit.

In a $6 million damage suit, Highmark West Virginia, Inc., a nonprofit corporation in Parkersburg that provides healthcare benefits, alleges that MedTest Laboratories and Vitas, two West Virginia limited liability companies in Putnam County, together with four individual owner/operators, carried out a scheme of making false, misleading and fraudulent claims for laboratory and diagnostic services that MedTest did not perform.

In response, Medtest has filed a countersuit, alleging that all services for which payment had been requested, per existing contracts, had been performed.

Since then, the case has expanded to include seven other insurance companies under the Blue Cross Blue Shield Association banner.

On Tuesday, Highmark attorney Stuart A. McMillan of Bowles Rice LLP asked that the countersuit be dismissed.

“What happened is MedTest starting billing for services they did not perform,” said McMillan. He asked Judge Nines how they could possibly expect to be paid for services that were not rendered.

Also Tuesday, two other motions for dismissal were made by several third-party defendants in the countersuit.

Representatives of Athem Inc., et al., counsel for Blue Cross Blue Shield of Arizona and counsel for Blue Cross Blue Shield of Kansas and Health Now all requested a motion to dismiss on the grounds of lack of personal jurisdiction.

Thomas J. Hurney Jr. representing the counsel for third-party defendants Louisiana Health Service and Indemnity Co. PAC, also requested a dismissal on the grounds of failure to state a claim upon which relief can be granted.

Representatives of MedTest stood to argue against the motions of dismissal.

Nines made no rulings on any of the motions on Tuesday. The next court date for these suits has not yet been set.

Other defendants in the initial suit alongside MedTest Laboratories LLC are Brice and/or Billy Taylor, Muhammad Amjad, Ph.D., Michael Chen, Ph.D., and James Taylor.

Although filed initially in Wood County, because of its complexity and size the West Virginia Supreme Court of Appeals transferred the case to its Business Court Division. Judge Nines is one of seven judges for the Business Court Division and he has been assigned as the presiding judge in this case

Judge Nines’ office is in Philippi where he serves along with Judge Alan D. Moats as judges for the 19th Judicial Circuit, which includes Barbour and Taylor counties.

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