Judge Transfers United Surgical ERISA Texas Case Over Tobacco Surcharge Dispute

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Limited Ties to Kentucky

Janosky attempted to justify filing in Kentucky by claiming USPI had “sufficient contacts” with the state through operations near its border and Kentucky-based employees. But the judge rejected that reasoning, calling it “wholly speculative.”

“That there may be ‘dozens’ of class members who reside in Kentucky that travel out of state to work in defendant’s facilities … is an insufficient basis for jurisdiction,” Bunning wrote.

The judge further found that transferring the case would be more convenient, since witnesses and plan administrators are based in Texas, and nearly half of USPI’s employees work there.

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While acknowledging Janosky’s financial hardship and travel concerns, Judge Bunning said the balance of convenience still favored the company, solidifying his decision to transfer the case to the Northern District of Texas.

Counsel

Janosky is represented by Kimberly Dodson, Leslie LeeAnn Pescia, and Oren Faircloth of Siri & Glimstad LLP.
United Surgical Partners is represented by Ashley E. Johnson, Jennafer Tryck, and Karl Nelson of Gibson Dunn & Crutcher LLP.