United States Fifth Circuit

In both parties' appeal from the district court's order enjoining the implementation of La. R.S. section 42:802.1 (the Act) on the basis that it violated the dormant Commerce Clause because it effectively favored Louisiana insurance companies in bidding for health insurance coverage for state employees, but holding that the Act did not violate the Commerce or Due Process Clauses, the judgment is reversed where: 1) because the state, by choosing with whom it did business, was acting as a participant in -- and not a regulator of -- the insurance market, the Act fell within the market participant exception, and the dormant Commerce Clause was therefore not a bar to its actions; and 2) the Act was invalid, as applied, because it interfered with the plaintiffs' current contracts in violation of the Contract Clause.

Appellate Information

• Decided 04/01/2010
• Published 04/01/2010

Judges

Court

• United States Fifth Circuit

Counsel