Pacificare Health Systems, Inc., et al. v. Jeffrey Book et al. (538 U.S. 401)
U.S. Supreme Court · decided April 7, 2003 · Supreme Court Database (Spaeth)
- Citation
- 538 U.S. 401 · 123 S. Ct. 1531
- Decided
- April 7, 2003
- Term
- October Term 2002
- Vote
- 8–0
- Majority author
- Justice Scalia
- Issue area
- Economic Activity
- Disposition
- Reversed and remanded
- Outcome
- Petitioning party won
- Ideological direction
- Conservative
Opinion excerpt
Justice Scalia delivered the opinion of the Court. In this case, we are asked to decide whether respondents can be compelled to arbitrate claims arising under the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U. S. C. § 1961 et seq., notwithstanding the fact that the parties’ arbitration agreements may be construed to limit the arbitrator’s authority to award damages under that statute. I Respondents are members of a group of physicians who filed suit against managed-health-care organizations including petitioners PacifiCare Health Systems, Inc., and Pacifi-Care Operations, Inc. (collectively, PacifiCare), and United-Healthcare, Inc., and UnitedHealth Group Inc. (collectively, United). These physicians alleged that the defendants unlawfully failed to reimburse them for health-care services that they had provided to patients covered by defendants’ health plans. They brought causes of action under RICO, the Employee Retirement Income Security Act of 1974 (ERISA), and federal and state prompt-pay statutes, as well as claims for breach of contract, unjust enrichment, and in quantum meruit. In re: Managed Care Litigation, 132 F. Supp. 2d 989, 992 (SD Fla. 2000). Of particular concern here, PacifiCare and United moved the District Court to compel arbitration, arguing that provisions in their contracts with respondents required arbitration of these disputes,…
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