FILED
2026 FEB 02 01:31 PM KING COUNTY
SUPERIOR COURT CLERK E-FILED
CASE #: 23-2-18847-1 KNT
The Honorable Kent Liu Hearing Date: Friday, September 19, 2025 Time: 11:00 a.m.
SUPERIOR COURT OF WASHINGTON FOR KING COUNTY
LYDIA ZOU, individually; BLAIR FLEMING, individually,
Plaintiffs, v.
MULTIPLAN, INC., a foreign corporation; REGENCE BLUESHIELD, a Washington corporation, Defendants.
NO. 23-2-18847-1
ORDER GRANTING PLAINTIFFS’ MOTION FOR SUMMARY JUDGMENT ON CPA INJURY, ENTRY OF CPA INJUNCTION, AND DEFENDANTS’ AFFIRMATIVE DEFENSES
This matter came before the Court on Plaintiffs’ Motion for Summary Judgment on CPA Injury, Entry of CPA Injunction, and Defendants’ Affirmative Defenses filed by Plaintiffs, Lydia Zou and Blair Fleming. The Court considered the pleadings and records on file herein, including the following materials:
1.Plaintiffs’MotionforSummaryJudgmentonCPAInjury,EntryofCPAInjunction, and Defendants’ Affirmative Defenses;
2.Declaration of Andrew Ackley in Support of Plaintiffs’ Motion for Summary Judgment on CPA Injury, Entry of CPA Injunction, and Defendants’ Affirmative Defenses with attached Exhibits 1-18;
3.Defendants’ Opposition to Plaintiffs’ Motion for Summary Judgment on CPA Injury, Entry of CPA Injunction, and Defendants’ Affirmative Defenses;
4.Declaration of Stefanie Franc in Support of Defendants’ Opposition to Plaintiffs’ Motion for Summary Judgment on CPA Injury, Entry of CPA Injunction, and Defendants’ Affirmative Defenses with attached Exhibits A-B;
5.Amended and Supplemental Declaration of Stefanie Franc in Support of Defendants’ Opposition to Plaintiffs’ Motion for Summary Judgment on CPA Injury, Entry of CPA Injunction, and Defendants’ Affirmative Defenses;
6.Declaration of Errol J. King, Jr. in Support of Defendants’ Opposition to Plaintiffs’ Motion for Summary Judgment on CPA Injury, Entry of CPA Injunction, and Defendants’ Affirmative Defenses dated September 8, 2025 with attached Exhibits A-E.
7.Plaintiffs’ Reply in Support of Motion for Summary Judgment on CPA Injury, Entry of CPA Injunction, and Defendants’ Affirmative Defenses.
The Court also considered the oral argument of the parties in open court on September 23, 2025, and being fully advised, hereby ORDER, ADJUDGE AND DECREE as follows:
On Plaintiff’s motion for summary judgment on CPA Injury:
MultiPlan representative Mary Wagner told Dr. Zou her plan was "a self-funded ERISA plan governed by Federal law" and that Thiringer did not apply. Multiplan representative Mary Wagner later acknowledged this was a "very large mistake." After the misrepresentation and referral to in-house counsel, MultiPlan failed to respond for over a month despite its own internal policies. Dr. Zou retained counsel on June 25, 2023.
MultiPlan waived subrogation on July 11, 2023. Dr. Zou paid $2,400 in attorney fees and lost use of $250,000 in UIM funds until after July 11, 2023. This constitutes injury as a matter of law.
MultiPlan sent Ms. Fleming’s attorney an incorrect notice of ERISA lien and insisted the plan was ERISA. $10,000 was withheld from her settlement disbursement.
MultiPlan did not waive the lien until after this lawsuit was filed in February 2024. Ms. Fleming’s loss of use of funds for several months constitutes injury.
Defendants’ argument that the Plan's "first-priority" language disavowing the “made whole” rule renders the ERISA misrepresentation immaterial fails. Washington law is clear that the “made whole” rule cannot be contracted away. Moreover, injury can be established by costs of dispelling uncertainty. Plaintiffs incurred costs because of Defendants' misrepresentation regardless of the Plan’s language.
Plaintiffs’ motion for summary judgment on CPA Injury is GRANTED.
On Plaintiff’s request for injunctive relief:
The misrepresentations continued into 2024, over a year after this lawsuit was filed.
Defendants have failed to identify why the misrepresentations continued to occur. Over 300 misrepresentations over several years affecting approximately 160 government employees is substantial. While the named Plaintiffs face no future risk, other government employees do, and government employees are the largest employee group in Washington. TheCPA'sbroadpublicpolicyisservedbypermittinganinjuredindividualtoenjoinfuture violations even if those violations would not directly affect the individual's own private rights.
Plaintiff’s request for injunction is GRANTED. Defendants are enjoined from stating verbally or in writing to individuals covered by a “government plan,” as defined by 29 U.S. Code § 1002, established or maintained within Washington State, that their health plans are ERISA plans or subject to ERISA.
On Plaintiff’s motion for summary judgment on Defendants’ Affirmative Defenses:
1. Failure to Join Necessary Parties. Plaintiffs’ motion to dismiss is GRANTED as to named Plaintiffs. Ruling RESERVED as to class plaintiffs.
2. Equitable Principles. Plaintiff’s motion to dismiss is GRANTED.
3. Statute of Limitations. Plaintiff’s motion to dismiss is GRANTED.
4. Release/Settlement. Plaintiff’s motion to dismiss is GRANTED. Judge Amini ruled on this issue finding that Defendants failed to meet their burden to prove the existence or material terms of a settlement. Defendants offer no new evidence.
5. Unclean Hands/Inexcusable Neglect. Plaintiff’s motion to dismiss is GRANTED.
6. Comparative Fault. Plaintiff’s motion to dismiss is GRANTED.
7. Third-Party Fault. Plaintiff’s motion to dismiss is GRANTED.
8. Failure to Mitigate. Plaintiff’s motion to dismiss is DENIED without prejudice.
9. No Causation. This is a denial of an element of Plaintiffs’ claim, not an affirmative defense. Plaintiff’s motion to dismiss is GRANTED.
10.Good Faith/No Malice. Plaintiff’s motion to dismiss is GRANTED.
11.No Damages/No Punitive Damages. Plaintiff’s motion to dismiss is DENIED.
12.No Attorney Fees. Plaintiff’s motion to dismiss is DENIED.
13.Failure to State a Claim. Plaintiff’s motion to dismiss is GRANTED.
DATED this 2nd day of February, 2026.
Electronic signature attached
HONORABLE KENT LIU
King County Superior Court Judicial Electronic Signature Page
CaseNumber: 23-2-18847-1 KNT
CaseTitle: ZOU ET ANO VS MULTIPLAN INC ET ANO
DocumentTitle: Order
DateSigned: 02/02/2026
Judge: Kent Liu
Key/IDNumber: *337256038*
PageCount: Thisdocumentcontains 4 page(s)plusthissignaturepage.