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Lipstick On a Pig
Last Updated on Tuesday, 10 April 2007 05:28 Written by rslcpol Tuesday, 10 April 2007 05:28
When young children don’t get their way they have temper tantrums.
When trial lawyers don’t get their way they commission cheeky, editorial cartoons.
That about distills what Mississippi, super-trial lawyer Dickie Scruggs did after Mississippi’s Democrat State Insurance Commissioner George Dale reached an out-of-court agreement on previously denied claims.
Courtesy of Legal Newsline.com, here’s why Scruggs is so upset with George Dale:
After a settlement Scruggs helped negotiate with State Farm in Attorney General Jim Hood's lawsuit against five insurance companies over an alleged lack of coverage following Hurricane Katrina was denied by federal judge L.T. Senter, Dale and State Farm reached an agreement to reopen previously denied claims.
More…
A report from The Associated Press said Scruggs stood to make another $20 million if the second part of that settlement had been approved. It grouped together 35,000 policyholders who had not sued yet but still could. Senter rejected that settlement, which had no cap and was estimated to be worth approximately $500 million, for several reasons.
After all that, Dale and State Farm made an effort to resolve things outside of a courtroom. Scruggs is concerned with the oversight, or lack thereof, in that process.
So, Scruggs is likely upset because he lost an additional $20 million from the 2nd part of the settlement tossed out by Judge Senter – and probably wishes that Commissioner Dale was more like the Democrat Attorney General Jim Hood, then he’d stand to get more money.
Scruggs said keeping Dale from being re-elected to his eighth term is a priority.
“It would have been easier for him if he had an ally like Attorney General Hood as the insurance commissioner,” said Rossmiller, whose blog can be found here.
“Scruggs has said the lawsuits are political and public relations events as much as litigation, so he seeks to get everyone to go along with his purposes.
“Dale has a more traditional view of the office, which doesn't involve grandstanding against insurance companies. This is the old debate about whether the regulators get 'captured' by those they regulate.”
Cost somebody $20 million – be prepared to face the consequences. The most skilled make-up artists couldn’t cover up that this really wasn’t about meritorious claims – but money in the pocket for Scruggs.
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With this kind of love – why would you stay?
Last Updated on Monday, 19 March 2007 06:19 Written by rslcpol Monday, 19 March 2007 06:19
The Wall Street Journal
had an interesting commentary last week concerning Mississippi Attorney General
Jim Hood and his “shake down” of State Farm resulting from claims
made following Hurricane Katrina. All too often we see activist Attorneys
General clamoring for headlines or political profit at the expense of real
results. As the Wall Street Journal observed
(link
– subscription required):
Attorneys
General are immensely powerful and are supposed to enforce the law fairly and
without playing favorites. Instead, many of them have essentially become
business partners with the trial bar to shake down companies for cash and
political gain. In an earlier day, this would have been known as an
absolute power corrupting absolutely.
Infamously known, trial lawyer Dickie Scruggs is at work again –
you may recall his firm reaped in a substantial reward following the 1998 Master Settlement Agreement
to the tune of $1.4 billion by the time they collect their last penny.
This time – he is partnering with AG Hood, already earning himself a cool
$26 million from the original 640 claims settled with State Farm following
Katrina (Attorney:
State Farm settlement possibly "can't be fixed") But
that is not enough – and they are going for more.
The end result – State Farm believes the political and legal
environment is instable in Mississippi and it’s time to pack up.
This after the company was referred to by the AG as “robber
barons.” With this kind of love – why would you stay?
Interestingly enough, AG Hood has also gone to D.C. to seek
Congressional intervention – i.e. more regulation. Remarkable
coming from a man who was noted in a profile in LegalNewsline
as a “self-proclaimed
‘free-marketer.’” Not sure what school of
economic though he comes from – but he has gained a reputation as a “sue-first, ask-questions-later”kind of guy. Not really the role of
an Attorney General.
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