Summary
The court held that plaintiffs' state-law negligent misrepresentation claim against an insurer and preferred provider organization was preempted by ERISA because it sought recovery beyond the employee benefit plan's coverage limits and would affect plan structure, administration, and cost. The court denied remand, denied defendants' motion to dismiss, and granted plaintiffs leave to amend the complaint to assert an ERISA claim.
Holdings
- The claim was preempted because it sought recovery beyond the plan's limits and therefore had a connection with and impact on the ERISA plan, including its structure, administration, and economic obligations.
- The motion to dismiss was denied, and plaintiffs were granted twenty days to amend Count I to state a claim under ERISA.
Questions Presented
- Whether plaintiffs' state-law negligent-misrepresentation claim, brought in their independent capacity as medical providers, related to and was therefore preempted by ERISA.
- Whether the court should remand the matter after finding Count I preempted.
- Whether defendants' motion to dismiss should be granted or plaintiffs should be allowed to amend Count I to state a claim under ERISA.
Disposition
other
Cases Cited (10)
- Pilot Life Insurance Co. v. Dedeaux, 481 U.S. 41, 107 S. Ct. 1549, 95 L. Ed. 2d 39 (1987)(followed)
- Metropolitan Life Insurance Co. v. Massachusetts, 471 U.S. 724, 105 S. Ct. 2380, 85 L. Ed. 2d 728 (1985)(followed)
- Shaw v. Delta Air Lines, Inc., 463 U.S. 85, 96-97, 103 S. Ct. 2890, 77 L. Ed. 2d 490 (1983)(followed)
- Baxter By & Through Baxter v. Lynn, 886 F.2d 182, 185 (8th Cir. 1989)(followed)
- Arkansas Blue Cross & Blue Shield v. St. Mary's Hospital, 947 F.2d 1341, 1344, 1346, 1348 (8th Cir. 1991), cert. denied, 112 S. Ct. 2305, 119 L. Ed. 2d 227 (1992)(followed)
- Aetna Life Insurance Co. v. Borges, 869 F.2d 142, 146-47 (2d Cir.), cert. denied, 493 U.S. 811, 110 S. Ct. 57, 107 L. Ed. 2d 25 (1989)(followed)
- Coonce v. Aetna Life Insurance Co., 777 F. Supp. 759, 767-68 (W.D. Mo. 1991)(followed)
- Hospice of Metro Denver, Inc. v. Group Health Insurance of Oklahoma, Inc., 944 F.2d 752 (10th Cir. 1991)(distinguished)
- Memorial Hospital System v. Northbrook Life Insurance Co., 904 F.2d 236 (5th Cir. 1990)(distinguished)
- Cromwell v. Equicor-Equitable HCA Corp., 944 F.2d 1272 (6th Cir. 1991)(followed)
Cited In (0)
No citing cases on record yet.
Court Document
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