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Friday, December 4, 2009

US Supreme Court About to Rule on RICO Case

The US  Supreme Court has placed Cassens Transport Co., et al., Petitioners v,  Paul Brown, et al.,  No. 08-1375 on its conference agenda for December 4, 2009. At that time the Justices will review the Petition for Certiorari.


Pending before the US Supreme Court is a petition for a writ of certiorari to review a decision where: the employer, insurance company and their experts were found to have conducted themselves in violation of the RICO Act.


In this reverse preemption case, Public Citizen filed a brief which crystallizes the issues before the Court.


 Deepak Gupta and Allison Zieve of Public Citizen are co-counsel for the respondent.


"Respondent’s Brief in Opposition to the Petition for Certiorari.


The McCarran-Ferguson Act, 15 U.S.C. § 1012(b), “precludes application of a federal statute” that would “invalidate, impair, or supersede” a state law “enacted * * * for the purpose of regulating the business of insurance.” The questions presented in this case are:


1. Whether a state workers’ compensation law that transfers the risk of workplace injuries to employers, and requires that employers secure their ability to assume those risks either by purchasing of insurance or by self insuring, regulates the “business of insurance” within the meaning of the McCarran-Ferguson Act.


2. Whether a State’s exclusive, administrative remedial scheme for handling contested workers’ compensation benefit determinations is impaired within the meaning of the McCarran-Ferguson Act by the availability of suits under the federal Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1961 et seq., contesting the denial of worker’s compensation claims."


Click here to see the Workers' Compensation Blog for additional articles on RICO matters and workers' compensation.