Graves

MEMORANDUM DECISION

This case is before the Court on plaintiff Graves’ motion to remand. The sole issue raised by this motion is whether the federal Employee Retirement Income Security Act of 1974 (“ERISA”) preempts claims brought pursuant to section 790.03(h) of the California Insurance Code. For reasons explained below, this Court concludes that ERISA does not preempt such claims and therefore grants the motion to remand.

BACKGROUND

In early 1986, Graves was diagnosed as suffering from Lymphoma and Acquired Immune Deficiency Syndrome. At the time, he was covered by an ERISA-regulated group health insurance plan sponsored by his employer. Defendant Blue Cross of California (“Blue Cross”) was the insurer under the plan.

Pursuant to the terms of the policy, Graves applied for disability benefits. According to Graves’ complaint, Blue Cross grossly mishandled his claims. Graves alleges that this mishandling, which resulted in delay and confusion, caused him “extreme anxiety and upset.”

In July 1987, Graves filed suit against Blue Cross, asserting a single cause of action. He alleged that Blue Cross’ claims handling procedures constituted violations of California Insurance Code…