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Perkins v. Georgia Dep't of Med. Assistance

The trial court lacked subject matter jurisdiction over a plaintiff who failed to exhaust his administrative remedies.

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In 1996, Larry Perkins d/b/a Royal Lion Transportation and Diane Finney d/b/a Executive Nonemergency Transportation were contract providers of non-emergency medical transportation services for indigents with the Georgia Department of Medical Assistance.1 These plaintiffs sued GDMA over the method used by it to calculate amounts owed for such transportation. In 1996, the plaintiffs were audited using a “straight line” audit method, which resulted in the denial of payment of some of their charges. Royal Lion previously brought suit to adjudicate GDMA’s use of the straight line audit, which resulted in an award of $26,526.93.2 Executive neither used the administrative appeal process nor otherwise challenged the results of the 1996 audit then, but seeks to do so now in this action.

GDMA answered and moved for either summary judgment or dismissal. The trial court granted summary judgment as to both plaintiffs. Executive failed to exhaust administrative remedies available below, and therefore, the superior court lacked subject matter jurisdiction to consider any suit against GDMA. The trial court should have dismissed Executive under OCGA § 9-11-12 b 1 for lack of subject matter jurisdiction as a defense in abatement rather than grant summary judgment on the merits; therefore, the judgment as to Executive is ordered vacated and an order of dismissal without prejudice entered instead. As to Royal Lion, it previously litigated the same issues and won a substantially smaller damage award than it seeks now; res judicata bars the relitigation of such issues; and the grant of summary judgment is affirmed as to Royal Lion.

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