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UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT
_______________________
No. 94-40728
_______________________
VIRGINIA HIGHTOWER, ET AL.,
Plaintiffs-Appellees.
versus
TEXAS HOSPITAL ASSOCIATION, ET AL.,
Defendants,
MEMORIAL HOSPITAL FOUNDATION OF PALESTINE,
INC., dba MEMORIAL HOSPITAL, ANDERSON
COUNTY MEMORIAL HOSPITAL RETIREMENT PLAN,
AKA THE TEXAS ASSOCIATION RETIREMENT PLAN FOR
MEMBER HOSPITALS - ANDERSON COUNTY MEMORIAL HOSPITAL,
Defendant-Appellant,
_________________________________________________________________
Appeal from the United States District Court
for the Eastern District of Texas
_________________________________________________________________
January 3, 1996
ON PETITION FOR REHEARING
(Opinion September 28, 1995, 5th Circuit, 1995, ___F.3d___)
Before DAVIS and JONES, Circuit Judges and COBB1, District Judge
O R D E R :
In their petition for rehearing, appellees have raised a
number of arguments that they did not make to this court in their
original appellate briefs. Specifically, they contend that if the
scope of Title I and Title IV of ERISA are not construed
District Judge of the Eastern District of Texas, sitting by
designation.

consistently with regard to governmental plans that have, as here,
been transferred to private entities, a number of problems will
arise. The alleged problems will include the extent to which state
law rules will govern matters otherwise controlled by federal law
under ERISA's preemptive provisions in Title I; whether the Title
I protections accorded the PBGC will continue to apply to 0court,
and they are deemed waived and have played no role in our decision.
For this reason, and because appellees' reurging of their
position on rehearing is otherwise not persuasive, the petition is
DENIED.
Judge Cobb would grant the petition for a panel
rehearing.