ERISA Preempts Hospital's Contract Claims: 2nd Circ.

Law360, New York (April 21, 2011, 7:38 PM EDT) -- The Second Circuit ruled Thursday that a health care provider’s breach of contract claims against a benefit plan established under the Employee Retirement Income Security Act are completely preempted by federal law and should be heard by federal courts.

Affirming a district court's judgment in favor of the Teamsters Local 272 Welfare Fund in a dispute with Montefiore Medical Center over unpaid bills, the Second Circuit held that despite being brought as state law contract allegations, Montefiore's claims were completely preempted by ERISA, so Montefiore's case...
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