Brown, et al., v. Cassens Transport Co., et al., 546 F.3d 347 (2009)
The Plaintiffs in this matter are current or former employees of Cassens Transport Company. Each has submitted a claim to the Defendant for an alleged workers’ compensation injury.
The Plaintiffs filed a Federal District Court complaint raising Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C.§ 1961(1)(B), 1962(c), and 1964(c) claims, specifically alleging that the employer and the employer’s third-party administrator, Crawford, deliberately selected and paid unqualified doctors, including Dr. Margules, to give fraudulent medical opinions that would support the denial of Michigan Workers’ Compensation benefits.
The District Court dismissed the complaint, in part, on the basis that the McCarran-Ferguson Act precludes application of a federal statute in the face of a state law enacted for the purpose of regulating insurance, if the federal matter does not specially relate to the business of insurance, and would invalidated, impair, or supersede the state’s law. McCarran-Ferguson Act, §2(b), 15 U.S.C.A. § 1012(b). The Court of Appeals affirmed. However, the U.S. Supreme Court vacated the Judgment and remanded the case to the Court of Appeals, which then reversed and remanded as to the RICO issue, specifically stating that the Michigan WDCA does not pre-empt RICO claims under the McCarran-Ferguson Act.
The case remains on remand before the District Court for a determination as to whether the Defendants actually participated in a pattern of racketeering activity that violates RICO.