Latest Case: Donelon v. Shilling (Arbitration & Mediation)

Pro-Gun Justices Announce Their Agenda While the Supreme Court Bides It Time on Gun Rights

AUSTIN SARAT

Austin Sarat—Associate Provost, Associate Dean of the Faculty and William Nelson Cromwell Professor of Jurisprudence and Political Science at Amherst College—comments on yesterday’s decision by the U.S. Supreme Court deferring deciding on a Second Amendment issue presented by a New York City law that prohibited gun owners from transporting their guns out of the city. Sarat points out that the issue that divided the Court’s conservative justices in this case was not whether to radically expand the protections of the Second Amendment, but when and how to do so.

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Donelon v. Shilling

Docket: 2019-C-00514

Opinion Date: April 27, 2020

Judge: Crain

Areas of Law: Arbitration & Mediation, Civil Procedure, Contracts, Government & Administrative Law, Insurance Law, Professional Malpractice & Ethics

The Louisiana Supreme Court granted review in this case to determine whether the Louisiana Commissioner of Insurance was bound by an arbitration clause in an agreement between a health insurance cooperative and a third-party contractor. The Louisiana Health Cooperative, Inc. (“LAHC”), a health insurance cooperative created in 2011 pursuant to the Patient Protection and Affordable Care Act, entered an agreement with Milliman, Inc. for actuarial and other services. By July 2015, the LAHC was out of business and allegedly insolvent. The Insurance Commissioner sought a permanent order of rehabilitation relative to LAHC. The district court entered an order confirming the Commissioner as rehabilitator and vesting him with authority to enforce contract performance by any party who had contracted with the LAHC. The Commissioner then sued multiple defendants in district court, asserting claims against Milliman for professional negligence, breach of contract, and negligent misrepresentation. According to that suit, the acts or omissions of Milliman caused or contributed to the LAHC’s insolvency. Milliman responded by filing a declinatory exception of lack of subject matter jurisdiction, arguing the Commissioner must arbitrate his claims pursuant to an arbitration clause in the agreement between the LAHC and Milliman. The Supreme Court concluded, however, the Commissioner was not bound by the arbitration agreement and accordingly could not be compelled to arbitrate its claims against Millman. The Court reversed the appellate court's judgment holding to the contrary, and remanded the case for further proceedings.