Suit for Accidental Settlement Filed in Wrong Court, 5th Cir. Rules

A workers' compensation insurer's suit alleging that its former attorneys negligently settled a workers' compensation claim for $211,302 failed this week, when the U.S. 5th Circuit Court of Appeals concluded that the carrier had filed the suit in the wrong state. The 5th Circuit ruled that a federal district court in Texas lacked the jurisdiction to hear a malpractice suit against a Louisiana workers' compensation law firm, even though most of the payments in the underlying case were processed by a Texas administrator. The case title is Companion Property and Casualty Co. v. Pa...