Wednesday, November 17, 2004
From the BNA Health Law Reporter:
TWO APPEALS COURTS REVERSE 'COMPLETE PREEMPTION' RULINGS, SEND STATE LAW CLAIMS WITH ERISA OVERTONES BACK TO STATE COURT
Recent federal appellate rulings denounce misuse of the "complete preemption" doctrine to remove state claims involving Employee Retirement Income Security Act plans. The Sixth Circuit holds that retirees' claims of fraudulent inducement to accept early retirement benefits cannot be recast as claims under ERISA's civil enforcement provision, Section 502, and thus must be remanded to state court. . .
Meanwhile, the Third Circuit rules that a hospital's state law breach of contract action against a health plan for wrongly granting plan participants discounted rates cannot be maintained under Section 502 because the participants had not assigned their claims to it. Both courts stress that mere conflict preemption under ERISA Section 514 will not support removal. . . .