First round in Cover Oregon legal fight goes to state

KATU-TV reports that the state of Oregon on Friday won the first round against Oracle Inc. in their legal dispute over the failed Cover Oregon health insurance website after a judge rejected Oracle's effort to try the case exclusively in federal court.

U.S. District Judge Anna Brown cited procedural problems with Oracle's request, and her decision may be short-lived. A company lawyer said Oracle will file a new request to have the disputes heard in federal court.

"I think one thing that's clear is that the state is taking a gamble that investing this much in a lawsuit is going to yield a return in terms of a result - whether it's going to force a settlement that will pay off or whether it's going to eventually lead to a legal victory," said David Friedman, associate law professor at Willamette University.

Friedman's been closely following the case.

He continued, "(The state) hired a high-profile law firm in Portland, and to get quality legal advice and to get quality representation, you're going to have to make that kind of investment."

Story originally aired November 21, 2014 on KATU-TV.