IN RE WORKERS' COMPENSATION REFUND

No. 94-1744.

46 F.3d 813 (1995)

In re WORKERS' COMPENSATION REFUND. WESTERN NATIONAL MUTUAL INSURANCE COMPANY, a Minnesota insurance company, Plaintiff/Appellee v. John B. LENNES, Jr., individually and as Commissioner, Minnesota Department of Labor and Industry; James E. Ulland, individually and as Commissioner, Minnesota Department of Commerce; Defendants/Appellants Workers' Compensation Reinsurance Association, a non-profit association; Defendant Care Providers of Minnesota, Inc., a Minnesota corporation; Health Dimensions, Inc., a Minnesota corporation; Medcare Associates, a Minnesota corporation; North Cities Health Care, Inc., a Minnesota corporation; Walker Methodist, Inc., a Minnesota non-profit corporation, Intervenors/Defendants. St. Paul Fire and Marine Insurance, and its subsidiaries St. Paul Mercury Insurance Company, and St. Paul Guardian Insurance Company; Tri-State Insurance Company of Minnesota; Aetna Casualty and Surety Company, and its subsidiaries The Standard Fire Insurance Company, The Automobile Insurance Company of Hartford, CT, Farmington Casualty Company, and Aetna Casualty & Surety Company of Illinois; Fireman's Fund Insurance Company, and its subsidiaries American Automobile Insurance Company, Associated Indemnity Corporation, Fireman's Fund Insurance Company of Wisconsin, National Surety Corp., and The American Insurance Company; Great American Insurance Company, and its subsidiaries American Alliance Insurance Company, Agricultural Insurance Company, and American National Fire Insurance Company; Insurance Company of North America, and its subsidiaries Indemnity Insurance Co. of North America, CIGNA Insurance Company, Pacific Employers Insurance Company, CIGNA Property & Casualty Insurance Company, CIGNA Fire Underwriters Insurance Company, Bankers Standard Insurance Company, and Century Indemnity Company; Home Insurance Company, and its subsidiaries Home Indemnity Company, City Insurance Company, and Home Insurance Company of Indiana; American Manufacturers Mutual Insurance Company; American Motorists Insurance Company; American Protection Insurance Company; Lumbermens Mutual Casualty Company, collectively known as the Kemper National Insurance Companies; Royal Indemnity Company, and its affiliates American & Foreign Insurance Company, Globe Indemnity Company, Newark Insurance Company, Royal Insurance Company of America, Safeguard Insurance Company, and Millbank Insurance Company; United States Fidelity & Guaranty Company, and its subsidiaries Fidelity Guaranty Insurance Company and Fidelity and Guaranty Insurance Underwriters, Inc.; Zurich Insurance Company, U.S. Branch, and its affiliate American Guarantee and Liability Insurance Company, Plaintiffs/Appellees v. James E. ULLAND, in his official capacity as Commissioner of the Department of Commerce of the State of Minnesota; John B. Lennes, Jr., in his official capacity as Commissioner of the Department of Labor and Industry of the State of Minnesota; Defendants/Appellants Workers' Compensation Reinsurance Association, a Minnesota non-profit association; Defendant Care Providers of Minnesota, Inc., a Minnesota non-profit corporation, Health Dimensions, Inc., a Minnesota corporation; Medcare Associates, a Minnesota corporation; North Cities Health Care, Inc., a Minnesota corporation; Walker Methodist, Inc., a Minnesota non-profit corporation, Intervenors/Defendants. MINNESOTA MUTUAL FIRE AND CASUALTY; Employers Insurance of Wausau, a Mutual Company; Farmland Mutual Insurance Company; Federated Mutual Insurance Company; Liberty Mutual Insurance Company; Liberty Insurance Corporation; Liberty Mutual Fire Insurance Company; Lumbermen's Underwriting Alliance; Nationwide Mutual Insurance Company; Nationwide Mutual Fire Insurance Company; Wausau Underwriters Insurance Company, Plaintiffs/Appellees v. James E. ULLAND, individually and in his official capacity as Commissioner of Minnesota Department of Commerce; John B. Lennes, Jr., individually and in his official capacity as Commissioner of the Department of Labor and Industry; Defendants/Appellants Workers' Compensation Reinsurance Association, a Minnesota non-profit association; Defendant Care Providers of Minnesota, Inc., a Minnesota non-profit corporation; Health Dimensions, Inc., a Minnesota corporation; Medcare Associates, a Minnesota corporation; North Cities Health Care, Inc., a Minnesota corporation; Walker Methodist, Inc., a Minnesota non-profit corporation, Intervenors/Defendants. CONTINENTAL CASUALTY COMPANY; Continental Insurance Company; Transportation Insurance Company; National Fire Insurance Company; American Casualty Company of Reading, PA; Valley Forge Insurance Company, Plaintiffs/Appellees v. James E. ULLAND, in his official capacity as Commissioner of the Department of Commerce of the State of Minnesota; John B. Lennes, Jr., in his official capacity as Commissioner of the Department of Labor and Industry of the State of Minnesota; Defendants/Appellants Workers' Compensation Reinsurance Association, a Minnesota non-profit association; Defendant Care Providers of Minnesota, Inc., a Minnesota non-profit corporation; Health Dimensions, Inc., a Minnesota corporation, Medcare Associates, a Minnesota corporation; North Cities Health Care, Inc., a Minnesota corporation; Walker Methodist, Inc., a Minnesota non-profit corporation, Intervenors/Defendants.

United States Court of Appeals, Eighth Circuit.

Decided January 31, 1995.


Attorney(s) appearing for the Case

Carolyn Page Ham, St. Paul, MN, argued, for appellant.

James R. Safley, and John Dwyer French, Minneapolis, MN, argued, for appellees.

Before BEAM, Circuit Judge, FRIEDMAN, Senior Circuit Judge, and MORRIS SHEPPARD ARNOLD, Circuit Judge.


BEAM, Circuit Judge.

In this consolidated action, various insurance companies challenge the constitutionality of a Minnesota statute which retroactively redistributes excess premiums. The insurance companies also challenge the statute's cost-shifting provision. The district court granted the insurance companies' motion for summary judgment, finding that the retroactive application of the statute violated the Contract Clause and that the cost-shifting provision violated...

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