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District court's grant of summary judgment in favor of the Secretary of the United States Department of Health and Human Services, denying a reimbursement claim for loss on depreciable assets resulting from a merger between two non-profit medical corporations is vacated and remanded where: 1) the Secretary's interpretation of the related party regulations, requiring examination of whether the parties were related pre- and post-merger, is contrary to the plain language of the regulations, and under the proper, pre-merger test, the parties were not related at the time of the transaction; and 2) the district court's determination that the merger was not a bona fide sale was not based on substantial evidence, in light of errors made in determining the value of certain assets.
On Appeal from the United States District Court for the Western District of Pennsylvania
Opinion Filed January 20, 2010
Before: Rendell and Garth, Circuit Judges, and Padova, District Judge
Opinion by Circuit Judge Rendell
For Appellant: Samuel W. Braver, Buchanan Ingersoll & Rooney
For Appellee: Joel L. McElvain, US Departmet of Justice, Civil Division