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SYMETRA LIFE INS. CO. v. RAPID SETTLEMENTS, LTD.

No. 08-20248.

567 F.3d 754 (2009)

SYMETRA LIFE INS. CO.; Symetra Assigned Benefits Serv. Co., Plaintiffs-Appellees, v. RAPID SETTLEMENTS, LTD., Defendant-Appellant. Rapid Settlements, Ltd., Plaintiff-Appellant, v. Symetra Life Ins. Co.; Symetra Assigned Benefits Serv. Co., Defendants-Appellees.

United States Court of Appeals, Fifth Circuit.

May 11, 2009.

Attorney(s) appearing for the Case

Jeff D. Lefkowitz, Andrews, Myers, Coulter & Cohen, Houston, TX, Katherine Ann Scanlon (argued), Peter Joseph Vodola, Pullman & Comley, LLC, Hartford, CT, for Plaintiffs-Appellees.

Susan F. Hatcher, John Robert Craddock, Stewart A. Feldman (argued), The Feldman Law Firm, Houston, TX, for Defendant-Appellant.

Before HIGGINBOTHAM, GARZA and PRADO, Circuit Judges.

PER CURIAM:

For essentially the reasons stated by the district court,1 we AFFIRM.

In so holding, we join numerous state and federal courts concluding that a sham arbitration cannot be used as a device to bring about an otherwise unlawful transfer.2 To hold otherwise would be to sanction easy invalidation of a wide range of state policies. Arbitral powers do not extend beyond the substantive capacity...

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