'Sprague' is ERISA appeal to watch

Article Abstract:

Sprague v. General Motors, a United States Court of Appeals for the 6th Circuit ruling, would, if upheld, allow corporations to charge retirees for medical benefits even though they have promised that such benefits would be free for life. The decision has not only been upheld by the 6th Circuit en banc but cited favorably by the 7th Circuit. Plaintiffs attorneys say the ruling would permit corporations to renege on such promises as long as fine print in the formal documents gives them the right to cancel benefits.

Health insurance, Retirement benefits

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Courts peel HMO shield in medical malpractice cases: federal appeals courts rulings punch holes in ERISA protection. Will employers' self-insured plans be next?

Article Abstract:

Rulings by the 3d and 10th US Circuit Courts of Appeals may limit the once- broad interpretation of the Employment Retirement Income Security Act (ERISA) as applied to employer-provided medical coverage. Most federal trial courts have held that ERISA pre-empts state malpractice claims, which defense lawyers say keeps HMO premiums low. The 3d Circuit's reversal of a lower court's once well-regarded ruling in Dukes v. US Healthcare Systems throws doubt on the immunity of HMOs and self-funded plans.

Laws, regulations and rules, Medical personnel, Malpractice, Health maintenance organizations, Medical malpractice, Exclusive and concurrent legislative powers, Preemption (Legislative power)

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Zero-down bankruptcies may end; some courts forbid lawyers from delaying their fees

Article Abstract:

Several courts have found that the zero-down practice, common in bankruptcy actions as a way of paying legal bills, is illegal and that the code of professional responsibility makes it unethical. The bankruptcy code reform bills being drafted in the late 1990s in Congress do not address zero-down fee arrangements in consumer bankruptcies. Some bankruptcy specialists estimate that the zero-down practice was used in as many as half of 1997's 1.2 mil consumer bankruptcies.

Management, Bankruptcy

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