Hanna & Brophy representing six defendants as part of a Joint Defense Group succeeded in obtaining a dismissal of two  lawsuits filed in the Federal District Court, Eastern District, Sacramento against approximately seventy-seven workers' compensation insurance companies and self insured employers.

CalStar, an air ambulance provider, filed the two lawsuits seeking declaratory relief, among other causes of action, claiming outstanding balances due for air ambulance services provided on behalf of injured workers as a result of industrial accidents. CalStar sought a declaration that the California Official Medical Fee Schedule (OMFS), Title 8 CCR 9789.7, which sets the maximum reasonable fee for ambulance services, is preempted by the provisions of the Federal Aviation Act of 1958 as amended by the Airline Deregulation Act.  Additionally, CalStar sought damages to recover the outstanding balances.  An Amicus Brief in support of CalStar's position was filed on behalf of California Association of Air Medical Services.

The Joint Defense Group filed a total of four motions, including three motions to dismiss, in the two related cases taking the position that the Federal Court lacked subject matter jurisdiction and furthermore that CalStar's exclusive remedy was at the California Workers' Compensation Appeals Board.  On July 24, 2009, Magistrate Judge Morrison C. England, Jr. issued his decision agreeing with the position of the Joint Defense Group dismissing both cases. The Defendants were represented by Hanna and Brophy attorneys Pat McAleer and Megan Kelly.

Query, will the case be refiled by CalStar against the State of California, Director of Industrial Relations, a question subtly raised by Judge England in his decision?

A notice of appeal was filed to the Ninth Circuit Court on August 18, 2009.

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