Robert E. Lyons v. Philip Morris, Inc.

The trustees of twenty-five multi-employer health benefit plans (the Trustees)
commenced this action in Minnesota state court, asserting various state law claims
against defendant tobacco companies. The Trustees seek damages and equitable relief
to remedy alleged injury to the plans, including “higher administrative costs . . . in the
form of paying claims for care associated with tobacco related illnesses.” Defendants
removed the case to federal court, and the Trustees moved to remand. Concluding that the Trustees “are essentially making subrogation claims” for the recovery of health
benefits paid, the district court1 denied their motion to remand because those claims are
preempted by the Employee Retirement Income and Security Act, 29 U.S.C. §§ 1001
et seq. (ERISA). The Trustees then filed a second amended complaint, which
contained none of the earlier state law claims, nor any claim under ERISA, but asserted
claims under the federal antitrust laws and RICO. In separate orders, the district court
dismissed those claims on the merits and dismissed defendant B.A.T Industries (BAT)
for lack of personal jurisdiction. The Trustees appeal, arguing the district court lacked
removal jurisdiction over their initial suit and improperly dismissed their antitrust
claims, their RICO claims, and defendant BAT.

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Affirmed.

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