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f - A p p e lla n t, v. UN I T E D S T AT E S OF F I C E OF P E R S O N N E L M A N A G E M E N T a nd T H C - O R A N G E C O U N T Y I N C . , doi ng bus i ne s s a s K i ndr e d H os pi t a l S a n D i e go, D efen d an t s - A p p el l ees. N o. 08- 56983 D . C. N o . 3 : 0 7 - c v - 0 2 4 3 2 - H - LSP ME MOR AN DU M *

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the part i es w i sh t o p ursue c ou rt -f ac i l i t at ed m edi at i on , w e w i l l consi der a 1 m ot i on t o st aythe m andat e. 2 A rnol d S c hi m s kyappe a l s the di s tr i c tc ourt ’ s di s m i s s a l of hi s c om pl a i nt a g a in s t th e U n ite d S ta te s O f f ic e o f P e r s o n n e l M a n a g e m e n t ( “O P M ” ) . I n h is com pl ai nt , S chi m sky s ou gh tt o rec ov erbenefi t s und erthe F eder al E m pl oyee s H ea l th B enef

i t s A ct . B ec ause S chi m sky di d n otexhaustadm i ni stra t i ve re m edi es pr i ort o f i l i ng hi s a c t i on, the di s tr i c tc ourtdi s m i s s e d the c om pl a i ntf orl a c k of s u b je c t m a tte rju r is d ic tio n . O n ap p e a l, S c h im s k ya r g u e s th e d is tr ic t c o u rt e rr e d in di sm i ss i ng ra ther than st ay i ng hi s a ct i on . W e a gree and rem and t o the di stri ctcourt w i th i n stru ct i o n s t o st ay th e act i o n p en d i n g ex h au st i o n o f ad m i n i strat i v e rem ed i es. 1 W e r evi ew the di stri ctcourt ’ s di sm i ss al for l ac k o f s ubj ec tm att er ju r is d ic tio n d e n o v o . Sn el l v. C lev elan d, Inc. , 316 F . 3d 822, 825 ( 9th C i r . 2002) ( pe rc ur i a m ) . A ddi t i ona l l y , w he r e e xhaus t i on i s non- j ur i s di c t i ona l , w e r e vi e w the di s tr i c tc ourt ’ s de c i s i on t o di s m i s s a n a c t i on f orf a i l ur e t o e xhaus ta dm i ni s tr a t i ve r e m e di e s f

orabus e of

di s c r e t i on. P en si o n B en ef i t G u a r. C o rp . v. Ca rter & T i l lery E n ters. , 1 3 3 F .3 d 1 1 8 3 , 1 1 8 7 ( 9 th C ir . 1 9 9 8 ) . C o n tr a ryto th e d is tr ic t c o u rt’s d e te rm in a tio n , th e e x h au s tio n r e q u ir e m e n t in thi s c a s e w a s non-

j ur i s di c t i ona l be c aus e i tw a s c r e a t e d bya ge nc yr e gul a t i ons a nd w a s n o t m a n d a te d b ys ta tu te . See id. ( “[ W ]h e n . . . th e e x h au s tio n r e q u ir e m e n t isA to ral arg u m en t , O P M rai sed 5 C . F . R . § 8 9 0 . 1 0 5 (e)(1 )(i i i ) fo r th e fi rst 2 t i m e a nd a r gue d tha tS c hi m s kyw a s notdi l i ge ntbe c aus e he c oul d ha ve tr e a t e d B l ue C r os s ’ s f a i l ur e t o i s s ue a n i ni t i a l c ove r a ge de c i s i on w i thi n 120 da y s a s ade ni a l of coverage. B ec ause O P M fa i l ed t o rai se thi s argum entei ther i n i t s bri ef or before th e d is tr ic t c o u rt, it h a s b e e n w a iv e d . B u t ler v. C u rry , 52 8 F . 3d 62 4, 64 2 (9th C i r. 2 0 0 8 ) . W e n o te , h o w e v e r , th a t b yits p la in la n g u a g e , th e r e g u la tio n r e f e r s to re vi ew of a de n ie d

c la im , no tt o O P M re vi ew of a c l ai m thathas notye tbeen de ni e d. 3 creat ed b y ag en cy reg u l at i o n s, th e d eci si o n w h eth er t o req u i re ex h au st i o n i s a m a tt e rf ordi s tr i c tc ourtdi s c r e t i on. ” ( quot i ng Ko b leu r v. G rp . H o sp . & Med. Servs. , 9 5 4 F .2 d 7 0 5 , 7 1 1 ( 1 1 th C ir . 1 9 9 2 ) ) ) ; cf . Kucan a v. H

older , 130 S . C t . 827, 831 ( 2 0 1 0 ) ( h o ld in g th a t as ta tu to ryju r is d ic tio n - s tr ip p in g p r o v is io n ap p lie d o n lyto “[ a g e n c y ] d e te rm in a tio n s m a d e d is c r e tio n a ryb ys ta tu te , [ a n d n o t] to d e te rm in a tio n s d e c la r e d d is c r e tio n a ryb yth e [ a g e n c yits e lf ] th r o u g h r e g u la tio n ” ) . A c c o r d in g ly , th e d is tr ic t c o u rt h a d d is c r e tio n to s ta yr a th e rth a n d is m is s th e a c tio n . S c h im s kyf

ile d h is a c tio n o n D e c e m b e r3 1 , 2 0 0 7 , th e d a yb e f o r e th e s ta tu te o f l i m i t at i o n s w as sett o ex p i re fo r so m e o f h i s cl ai m s. S ch i m sk y d i d n o tex h au st a dm i ni s tr a t i ve r e m e di e s be c aus e he ha d noty e tr e c e i ve d ade ni a l of c ove r a ge f

r om B l ue C r os s . W i thoutade ni a l of c ove r a ge , S c hi m s kyc oul d notc om m e nc e the ad m i n i strat i v e rev i ew p ro cess. See 5 C . F . R . § 890. 105( a ) . Y e ti f S c hi m s ky 2 w a i t e d f orade ni a l of

c ove r a ge , the s t a tut e of l i m i t a t i ons w oul d ha ve run outf or s o m e o f h is c la im s . See i d. § 890. 107( d) ( 2) . U nde rthe s e c i r c um s t a nc e s , the4

di s tr i c tc ourte rr e d bydi s m i s s i ng r a the rtha n s t a y i ng the a c t i on pe ndi ng e xhaus t i on o f a d m in is tr a tiv e r e m e d ie s . Se e P e ns i on B e ne f i t G uar . C or

p. , 133 F . 3d a t1187 (“ [ P ] a r tic u la r lyw h e r e a s ta tu te o f lim ita tio n s p r o b le m m ig h t de v e lo p , [ast ay pe ndi ng e xhaus t i on] m a yr e pr e s e ntthe be s ta c c om m oda t i on of the c om pe t i ng i nt e r e s t s . ” ( quot i ng Morrison-Knu dsen C o. v. C H G Int ’l , Inc. , 811 F . 2d 1209, 1 2 2 3 ( 9 th C ir . 1 9 8 7 ) ) ) ( e m p h a s is in o r ig in a l) ; a c c o rd Sh a r b e rv . S

p ir it Mo u n ta in G am i ngInc. , 3 4 3 F . 3 d 9 7 4 , 9 7 6 ( 9 th C i r . 2 0 0 3 ) ( p e rc u r i a m ) . Ac c o r d i n g l y , we r e ve r s e the j udgm e ntof the di s tr i c tc ourta nd r e m a nd w i th i ns truc t i ons t o s t a ythe act i o n p en d i n g S ch i m sk y’ s ex h au st i o n o f h i s ad m i n i strat i v e rem ed i es. RE V E RS E D a n d RE MAND E D.