636 F.3d 538 (9th Cir. 2011), 09-16810, California Shock Trauma Air Rescue v. State Compensation Ins. Fund

Docket Nº:09-16810, 09-16874.
Citation:636 F.3d 538
Opinion Judge:WALLACE, Senior Circuit Judge:
Party Name:CALIFORNIA SHOCK TRAUMA AIR RESCUE, Plaintiff-Appellant, v. STATE COMPENSATION INSURANCE FUND; Zurich American Insurance Company; Zenith Insurance Company; Redwood Fire & Casualty Insurance Company; Seabright Insurance Company; Allied Property and Casualty Insurance Company; Employers Direct Insurance Company; XL Specialty Insurance Company; Applie
Attorney:Kathryn Doi (argued) and John E. Fischer of Murphy Austin Adams Schoenfeld LLP, Sacramento, CA, for appellant California Shock Trauma Air Rescue. Moe Keshavarzi (argued), Frank Falzetta, and James F. McShane of Sheppard Mullin Richter & Hampton LLP, Los Angeles, CA; Peter Roan and Ronald D. Kurtz...
Judge Panel:Before: J. CLIFFORD WALLACE, JOHN T. NOONAN, and BARRY G. SILVERMAN, Circuit Judges.
Case Date:March 31, 2011
Court:United States Courts of Appeals, Court of Appeals for the Ninth Circuit
 
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636 F.3d 538 (9th Cir. 2011)

CALIFORNIA SHOCK TRAUMA AIR RESCUE, Plaintiff-Appellant,

v.

STATE COMPENSATION INSURANCE FUND; Zurich American Insurance Company; Zenith Insurance Company; Redwood Fire & Casualty Insurance Company; Seabright Insurance Company; Allied Property and Casualty Insurance Company; Employers Direct Insurance Company; XL Specialty Insurance Company; Applied Underwriters, Inc.; National Liability & Fire Insurance Company; Aims Insurance Services; Arch Insurance Company; Broadspire Services, Inc.; Church Mutual Insurance Company; Alaska National Insurance Company; Employers Insurance Company of Wausau; Insurance Company of the West; Employers Compensation Insurance Company; Florists' Mutual Insurance Company; Safeco Insurance Company of America; Safety National Casualty Corporation; Ace American Insurance Company; Cypress Insurance Company; Sierra Pacific Industries, Inc.; Fire Association Self-Insurance System; Contra Costa County Schools Insurance Group; California State Association of Counties Excess Insurance Authority; Protected Insurance Programs for Schools; Norcal Waste Systems, Inc.; Special District Risk Management Authority; Manpower, Inc.; Redwood Empire Municipal Insurance Fund; East Bay Regional Park District; Trindel Insurance Fund; County of Marin; Barrett Business Services, Inc.; Northern California Special Districts Insurance Authority; City of Monterey; County of Solano; Lake Valley Fire Protection District; County of Santa Barbara; 99 Cent Only Stores; County of El Dorado; City of Pleasanton; County of Stanislaus; Municipal Pooling Authority; the Davey Tree Expert; Ace Property and Insurance Company; ConocoPhillips Company; ABC Supply Company Inc.; Labor Ready Southwest Inc.; City of Watsonville; Lowe's HIW, Inc.; Agrium U.S. Inc.; American Casualty Company of Reading, Pennsylvania; Irwin Industries, Inc.; Waste Connections, Inc., Defendants-Appellees.

California Shock Trauma Air Rescue, Plaintiff-Appellant,

v.

AIG Domestic Claims, Inc.; AIG Insurance Services, Inc.; AIG Indemnity Insurance Company; State Farm General Insurance Company; State Farm Employees Activities Assn.; Regents of the University of California; MCM Construction, Inc.; Endurance Reinsurance Corporation of America; Environmental Alternatives; American Home Assurance Company; National Union Fire Insurance Company of Pittsburgh, PA; Commerce and Industry Insurance Company; Mainstay Business Solutions; Monterey County Local Agencies Insurance Authority; E.I. Du Pont De Nemours and Company; Cambridge Integrated Services Group, Inc.; Schools Insurance Authority; Schools Insurance Group; Pebble Beach Company, Defendants-Appellees.

Nos. 09-16810, 09-16874.

United States Court of Appeals, Ninth Circuit.

March 31, 2011

Argued and Submitted Jan. 14, 2011.

Page 539

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Page 540

Kathryn Doi (argued) and John E. Fischer of Murphy Austin Adams Schoenfeld LLP, Sacramento, CA, for appellant California Shock Trauma Air Rescue.

Moe Keshavarzi (argued), Frank Falzetta, and James F. McShane of Sheppard Mullin Richter & Hampton LLP, Los Angeles, CA; Peter Roan and Ronald D. Kurtz of Locke Lord Bissell & Liddell LLP, Los Angeles, CA; Larry M. Golub and Sandra I. Weishart of Barger & Wolen LLP, Los Angeles, CA; Steven H. Frankel and Sean McEneaney of Sonnenschein Nath & Rosenthal LLP, San Francisco, CA, for appellees State Compensation Insurance Fund et al.

Appeal from the United States District Court for the Eastern District of California, Morrison C. England, District Judge, Presiding. D.C. Nos. 2:09-cv-00090-MCE-JFM, 2:09-cv-00759-MCE-JFM.

Before: J. CLIFFORD WALLACE, JOHN T. NOONAN, and BARRY G. SILVERMAN, Circuit Judges.

OPINION

WALLACE, Senior Circuit Judge:

These consolidated appeals arise from two separate actions that involve California Shock Trauma Air Rescue (CALSTAR). Both actions turn on the same jurisdictional question: is the expectation of a federal defense, without more, sufficient to establish federal jurisdiction over a state-law claim? Despite CALSTAR's arguments to the contrary, we reiterate that the well-pleaded complaint rule precludes the exercise of federal subject matter jurisdiction over purely state-law causes of action, like the one raised here.

I.

CALSTAR provides air-ambulance rescue services to employees injured in the course of their employment, and whose employers are either self-insured or have

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purchased workers' compensation insurance. CALSTAR alleges that these employers and various insurance companies (collectively, Employers) have underpaid CALSTAR for its services. Rather than pay the amount billed by CALSTAR, Employers have paid a lesser amount as specified under the...

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