School District Must Arbitrate Aetna Row, Texas Court Rules

Law360, New York (June 1, 2012, 9:52 PM EDT) -- A state appeals court on Thursday ruled that a south Texas school district must arbitrate its dispute with Aetna over allegations that the insurance company inflated premiums on employee benefit plans for which it charged the district millions.

The Thirteenth Court of Appeals held that Weslaco Independent School District’s claim that its contract with Aetna is void doesn't render the pact’s arbitration clause unenforceable, overturning a lower court ruling denying arbitration. Under the contract, Aetna provided health and life insurance for district employees.

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