Sign In
Events
Newsletters
Search

Close

Close Search

Cancel

SEARCH
MY LAW.COMNEW

United Healthcare Insurance Co v. Davis

Because the State, by choosing with whom it did business, was acting as a participant in — and not a regulator of — the insurance market, La. R.S. �42:802.1 fell within the market participant exception, and the dormant commerce clause was therefore not a bar to its actions. However, �42:802.1 was invalid, as applied, because it interfered with the plaintiffs' current contracts in violation of the contract clause. 5th U.S. Circuit Court of Appeals, No. 08-30001, 03-31-2010

X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Before JOLLY and DENNIS, Circuit Judges, and JORDAN, District Judge. *fn1

This appeal presents questions relating to the dormant Commerce Clause and the Contract Clause of the United States Constitution. The district court granted a permanent injunction enjoining the implementation of La. R.S. § 42:802.1 (“Act 479″ or “the Act”), on the basis that it violated the dormant Commerce Clause, because it effectively favored Louisiana insurance companies in bidding for health insurance coverage for state employees. However, the district court held that the Act did not violate the Contract Clause by interfering with the plaintiffs’ contracts with the State. Thus everybody now appeals something. Defendants, Angele Davis and Tommy D. Teague (the “State”),*fn2 and Intervenors, Vantage Health Plan (“Vantage”) and the Covered persons, appeal the permanent injunction and the ruling on the dormant Commerce Clause. Plaintiffs, United Healthcare Insurance Company (“UHC”) and Humana Insurance Company (“Humana”), cross-appeal the district court’s holding that the Act did not violate the Contract or Due Process Clauses. We conclude that the district court erred on both issues. Because the State, by choosing with whom it did business, was acting as a participant in-and not a regulator of-the insurance market, the Act fell within the market participant exception, and the dormant Commerce Clause was therefore not a bar to its actions. However, the Act was invalid, as applied, because it interfered with the plaintiffs’ current contracts in violation of the Contract Clause. Accordingly, we reverse the district court’s judgment in favor of the plaintiffs declaring the Act invalid under the Commerce Clause, vacate the district court’s permanent injunction enjoining implementation of the Act, and remand for further proceedings not inconsistent with this opinion.

I.

Trending Stories

 
Reprints & Licensing
Mentioned in a Law.com story?

License our industry-leading legal content to extend your thought leadership and build your brand.

LEARN MORE

More From ALM

Premium Subscription
With this subscription you will receive unlimited access to high quality, online, on-demand premium content from well-respected faculty in the legal industry. This is perfect for attorneys licensed in multiple jurisdictions or for attorneys that have fulfilled their CLE requirement but need to access resourceful information for their practice areas.
View Now
Team Accounts
Our Team Account subscription service is for legal teams of four or more attorneys. Each attorney is granted unlimited access to high quality, on-demand premium content from well-respected faculty in the legal industry along with administrative access to easily manage CLE for the entire team.
View Now
Bundle Subscriptions
Gain access to some of the most knowledgeable and experienced attorneys with our 2 bundle options! Our Compliance bundles are curated by CLE Counselors and include current legal topics and challenges within the industry. Our second option allows you to build your bundle and strategically select the content that pertains to your needs. Both options are priced the same.
View Now
Go to CLE Center
GlobeSt. Women of Influence (WOI) 2024
July 22, 2024 - July 24, 2024
Lake Tahoe, CA

GlobeSt. Women of Influence Conference celebrates the women who drive the commercial real estate industry forward.


Learn More
New York Legal Awards 2024
September 05, 2024
New York, NY

The New York Law Journal honors attorneys and judges who have made a remarkable difference in the legal profession in New York.


Learn More
African Legal Awards 2024
September 06, 2024
Johannesburg

The African Legal Awards recognise exceptional achievement within Africa s legal community during a period of rapid change.


Learn More
Go to Events Go to Webcasts
Labor & Employment Associate Los Angeles

Description: Fox Rothschild LLP has an opening in the Los Angeles, CA office for an associate in our Labor & Employment Department. The ...


Apply Now ›
Associate Attorney

Blume Forte Fried Zerres and Molinari 1 Main Street Chatham, NJ 07945Prominent Morris County Law Firm with a state-wide personal injury prac...


Apply Now ›
eHealth Exchange In-house Legal Counsel

Reports to: Executive Director FLSA Status: Exempt, Full Time Supervisory Responsibility: N/A Location: Remote Compensation Range: $21...


Apply Now ›
Go to Lawjobs
Lawyers of Distinction
06/27/2024
The American Lawyer

Professional Announcement


View Announcement ›
SMGQ Law
06/21/2024
Daily Business Review

Full Page Announcement


View Announcement ›
Blume Forte Fried Zerres & Molinari
06/14/2024
New Jersey Law Journal

Professional Announcement


View Announcement ›
Go to Professional Announcements