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Zahl v. Harper

In action seeking federal injunctive relief from state disciplinary proceedings, dismissal of complaint affirmed; district court did not err in its decision to abstain because case met the three-part Garden State test; plaintiff's preemption challenge under Supremacy Clause failed because state proceedings involved strong state interest with no countervailing federal concerns.

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Submitted Under Third Circuit LAR 34.1(a) January 18, 2002

This appeal, in an action seeking federal injunctive relief from state disciplinary proceedings against a medical practitioner, raises important questions concerning the application of the doctrines of preemption and abstention.

The New Jersey State Attorney General (Attorney General) instituted disciplinary proceedings against Kenneth Zahl, M.D. (Zahl), alleging, inter alia, violations of the federal Medicare statute and regulations. Zahl sought an injunction in the United States District Court for the District of New Jersey to restrain the Attorney General from pursuing adjudication of two counts of the eight-count administrative Complaint (Complaint) in the pending action before the New Jersey State Board of Medical Examiners (Board). Zahl asserts that the two counts he challenges, involving allegations of Medicare fraud, are preempted by 42 U.S.C. SS 405(g) and (h). Therefore, he contends that the Board lacks jurisdiction over the proceedings pending against him. The District Court dismissed the complaint on grounds of abstention. We affirm.

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