Jones v. Hoel,
No. 5:01-CV-170 (E.D. Tex. Mar. 20, 2002)

The United States District Court for the Eastern District of Texas denied a motion for stay brought by several health care providers in a medical malpractice case alleging wrongful death, violation of EMTALA, and negligence. The providers in this case were insured by PHICO, a Pennsylvania malpractice carrier that was placed into liquidation in February 2002. Upon learning of their insurer's liquidation, the providers filed for a stay under a Texas statute that mandates that proceedings be stayed when the defendant's insurer is impaired. The court refused to issue a stay, however, finding that the Texas statute was not binding on federal courts.