PremierTox 2.0 v. Circuit Court

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Appellants, PremierTox, Inc. and PremierTox 2.0 (collectively, PremierTox) filed an action against Kentucky Spirit Health Plan, Inc. and others (collectively, Appellees), alleging that it was owed $1.8 million by Kentucky Spirit for services it had provided to Medicaid patients and for which Kentucky Spirit had allegedly been paid by the Commonwealth. The circuit court ordered Appellees to deposit $1.8 million into an escrow account controlled by the circuit court pending adjudication of the claim. The court of appeals issued a writ to prohibit enforcement of the circuit court's order, concluding that the circuit court lacked the authority to require Appellees to pay the demanded judgment into court in advance of an adjudication that Appellees owed the money. The Supreme Court affirmed the decision of the court of appeals to issue the writ of prohibition, holding (1) the circuit court acted erroneously in ordering Appellees to escrow the disputed funds under Ky. R. Civ. P. 67.02; (2) the circuit court's order was essentially a pre-judgment attachment for which Appellees lacked an adequate remedy on appeal or otherwise; and (3) Appellees satisfied the "irreparable injury" prong of the proper writ analysis. View "PremierTox 2.0 v. Circuit Court" on Justia Law