“It was never about the money for me, this litigation,” said Dickie Scruggs, who stands to collect between $26 million and $46 million from a settlement accomplished by the use of the state attorney general, Jim Hood, to extort State Farm with the threat of criminal proceedings for daring to enforce their flood exclusion clauses in their contracts. [Lattman] Many many posts on the subject at Point of Law.
Tagged as:
attorneys general,
class actions,
Dickie Scruggs,
Jim Hood,
Katrina,
not about the money,
State Farm
One would think that Mississippi Attorney General Jim Hood’s steering of $14 million in taxpayer money to a friend instead of using government attorneys at a fraction of the cost would be a major scandal, but The Sun Herald allows the story to be derailed into a trial-lawyer attack on lawsuit reform— and this is the “one hand/other hand” focus the reporter took:
“Some say the GOP pushes it because trial lawyers are the Democrats’ last major source of campaign funding. Others say Republicans push such changes to protect their major source of funding, big business.”
That reform demonstrated itself to be good public policy (especially in Mississippi, where its legal system was a notorious and shameful “judicial hellhole”) doesn’t seem to enter the equation. (Geoff Pender, “Battle over lawyer fees”, Oct. 25).
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attorneys general,
Jim Hood,
media bias,
Mississippi,
politics
Standard homeowners’ policies exclude coverage of flood damage unless it is purchased at a substantial additional premium, a fact well known to most property owners in high-risk areas. Mississippi lawyer Dickie Scruggs, a familiar figure to readers of this space, had the foresight to purchase flood insurance for his Pascagoula home, now partly destroyed by Hurricane Katrina. Now he wants the world’s insurers to pay billions for the properties they didn’t collect a premium for insuring, as well — perhaps scores of billions, if the principle is to extend to Louisiana. “Mr. Scruggs said he plans to urge Mississippi Attorney General Jim Hood to try to override flood-exclusion clauses in homeowners’ policies in that state in the interest of public policy, a move that could force insurers to pay many billions more toward rebuilding costs.” (Theo Francis, John D. McKinnon and Peter Sanders, “Paying for Flood Damage Looms as Big Challenge”, WSJ, Sept. 8)(sub). An operative with the Mississippi Trial Lawyers Association says he hopes that “people on the Coast and their friends statewide ratchet up the political pressure” to make the insurers pay. (Anita Lee, “Claims Dispute”, Biloxi Sun-Herald, Sept. 9). Megan McArdle thinks it’s all a brilliant way to scare insurers away from offering even conventional coverage in the future (Sept. 8). See also Point of Law, Sept. 9. More: Martin Grace Sept. 8, Sept. 8 again, Sept. 13.
Tagged as:
attorneys general,
Dickie Scruggs,
Jim Hood,
Katrina,
Louisiana,
Mississippi
