Quimbee logo
DMCA.com Protection Status

American Manufacturers Mutual Insurance Company v. Sullivan

526 U.S. 40, 119 S. Ct. 977, 143 L. Ed. 2d 130 (1999)

Case BriefRelatedOptions
From our private database of 33,800+ case briefs...

American Manufacturers Mutual Insurance Company v. Sullivan

United States Supreme Court

526 U.S. 40, 119 S. Ct. 977, 143 L. Ed. 2d 130 (1999)

Facts

Instead of filing lawsuits, workers in Pennsylvania were required to use the state’s workers’-compensation system to receive compensation for on-the-job injuries. When the workers’-compensation system was first implemented, most employers bought insurance to cover potential workers’-compensation claims. However, a provision of the workers’-compensation law requiring insurers to pay claims within 30 days resulted in the payment of unjustified claims, which could not later be reimbursed, driving up employers’ insurance premiums. Therefore, the provision was amended to allow insurers to deny claims if they notified the state and privately arbitrated disputes arising from denied claims. Although businesses were required to notify the state of denied claims, the state was not empowered to approve or deny the notices. American Manufacturers Mutual Insurance Company (insurer) (defendant) denied several employees’(plaintiffs) workers’-compensation claims. The employees filed a lawsuit pursuant to 42 U.S.C. § 1983, arguing that the workers’-compensation system was so heavily regulated by the state that the insurer’s workers’-compensation decisions were joint private-state decisions and thus the insurer had acted under color of state law in denying the employees’ claims. The district court dismissed the suit. The United States Court of Appeals for the Third Circuit found for the employees, and the United States Supreme Court granted certiorari.

Rule of Law

Issue

Holding and Reasoning (Rehnquist, C.J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 605,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 605,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 33,800 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 605,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 33,800 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership