Hospital's Insurance Dispute Not Local: 5th Circ.

Law360, New York (September 7, 2011, 8:20 PM EDT) -- The Fifth Circuit on Tuesday sent a putative class action filed by a Louisiana hospital against Texas bill reviewer FairPay Solutions Inc. and two insurers back to federal court, saying the case failed to meet the Class Action Fairness Act's local controversy exception.

A Louisiana federal judge had remanded Opelousas General Hospital Authority's suit accusing FairPay, Illinois-based Zurich Insurance Co. and LEMIC Insurance Co. to Louisiana state court, where the hospital had initially filed its complaint, after finding the dispute fulfilled the local controversy exception to...
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