Department of Health and Human Services v. NRK RX, Inc.

Summary

The Michigan Supreme Court considered which venue provisions govern a multicount civil action brought by the Department of Health and Human Services alleging, among other claims, conversion of Medicaid overpayments. The Court held that MCL 600.1641(2) requires application of the tort venue statute, MCL 600.1629, and that the original injury occurred in Ingham County, where DHHS was deprived of possession and control of the funds. The Court affirmed in part, reversed in part, and remanded for transfer from Oakland County to Ingham County.

Holdings

1. When more than one cause of action is pleaded and at least one cause of action is based on tort or another legal theory seeking damages for personal injury, property damage, or wrongful death, MCL 600.1641(2)'s mandatory language requires venue to be determined under MCL 600.1629, displacing the otherwise permissive Attorney General venue provisions in MCL 14.102 and MCL 600.1631(a).
2. The original injury occurred in Ingham County, where DHHS suffered its first actual injury from the alleged conversion—loss of possession and control over the electronic Medicaid funds—and where DHHS resides, has a place of business, or conducts business. Venue was therefore proper in Ingham County under MCL 600.1629(1)(b)(i).

Questions Presented

1. Whether MCL 600.1641(2) requires venue in a multicount action containing at least one tort claim to be determined under MCL 600.1629 rather than the Attorney General venue provisions in MCL 14.102 and MCL 600.1631(a).
2. If MCL 600.1629 controls, where the original injury occurred for purposes of determining venue.
3. Whether venue was proper in Ingham County or Oakland County under MCL 600.1629(1).

Disposition

reversed_and_remanded