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Milliman, Inc. v. James J. Donelon, Commissioner of Insurance for Louisiana, in His Capacity as Rehabilitator of Louisiana Health Cooperative, Inc.

Paid petition · Supreme Court of Louisiana, No. 2019-C-00514 · judgment April 27, 2020


Certiorari denied · March 1, 2021
Pre-decision estimate: 2% cert probability

Before the decision, well below the 4.1% base rate, with no standout signals pointing toward a grant.

Question presented

Milliman, Inc. performed pre-insolvency actuarial services for LAHC, a Louisiana health insurer, pursuant to a consulting agreement that requires the arbitration of any disputes arising out of or relating to that agreement. The Louisiana Insurance Commissioner, acting as rehabilitator of insolvent insurer LAHC, brought contract based damages claims in state court against Milliman. It is undisputed that if LAHC had brought these claims, they would have had to be arbitrated. However, the Louisiana Supreme Court held that the forum selection clause in the state’s insurance insolvency statute permits the Commissioner to bring these claims in state court and to refuse to arbitrate them. The question presented is: Whether the Federal Arbitration Act (the “FAA”) preempts the state’s forum selection clause and requires the commissioner to arbitrate these pre-insolvency damages claims against a non-policyholder, or whether the arbitration of these claims impairs or interferes with the state’s regulation of the business of insurance, such that the state’s forum selection clause reverse preempts the FAA pursuant to Section 2(b) of the McCarran-Ferguson Act? (i)

Counsel of record

For petitioner
Reid L. Ashinoff
Dentons US LLP

For respondent
Joseph Elton Cullens Jr.
Walters, Papillion, Thomas, Cullens, LLC

Case

Conference history
Distributed for 2 conferences

Linked docket
20A39

Proceedings

  1. Mar 01 2021
    Motion for leave to file amicus brief filed by the American Institute of Certified Public Accountants GRANTED.
  2. Mar 01 2021
    Petition DENIED.
  3. Feb 12 2021
    Reply of petitioner Milliman, Inc. filed. (Distributed)
  4. Feb 10 2021
    DISTRIBUTED for Conference of 2/26/2021.
  5. Jan 27 2021
    Brief of respondent James J. Donelon, Commissioner of Insurance for the State of Louisiana, in his Capacity as Rehabilitator of Louisiana Health Cooperative, Inc. in opposition filed.
  6. Dec 03 2020
    Motion to extend the time to file a response is granted and the time is extended to and including January 27, 2021.
  7. Dec 02 2020
    Motion to extend the time to file a response from December 28, 2020 to January 27, 2021, submitted to The Clerk.
  8. Nov 25 2020
    Response Requested. (Due December 28, 2020)
  9. Nov 17 2020
    DISTRIBUTED for Conference of 12/4/2020.
  10. Oct 08 2020
    Motion for leave to file amicus brief filed by The American Institute of Certified Public Accountants.
  11. Sep 23 2020
    Application (20A39) denied by Justice Alito.
  12. Sep 14 2020
    Motion of James J. Donelon, Commissioner of Insurance for the State of Louisiana, in his Capacity as Rehabilitator of Louisiana Health Cooperative, Inc. for an extension of time not accepted for filing. (September 15, 2020)
  13. Sep 03 2020
    Petition for a writ of certiorari filed. (Response due October 8, 2020)
  14. Sep 03 2020
    Application (20A39) for a stay pending the disposition of the petition for a writ of certiorari, submitted to Justice Alito.