LegalNewsLine Logo  
Friday, March 19 2010     Subscribe in NewsGator Online
News | Contact LegalNewsline | About Us | Advertise | RSS
Enter search keyword
 
NEWSLETTER
Receive our FREE weekly newsletter
click here
LNL MOST POPULAR ARTICLES
+ AG Tom Miller lands in GOP crosshairs
+ Settlement reached over nutritional supplement enrollment plan‏
+ Brown gets polluting hair products taken off store shelves
+ Whitman leads Brown in latest poll
+ Texas medical malpractice law survives challenge
LNL HOT TOPICS
+ Asbestos
+ Bankruptcy
+ Big Pharma
+ Class Action
+ Dickie Scruggs
+ Financial Crisis
+ Gasoline Prices
+ Global Warming
+ Hurricane Katrina
+ Lead Paint
+ Personal Injury
+ Sub-Prime Mortgages
State AGs 
 
Scruggs attacking Insurance Commissioner Dale
Richard Scruggs' attack ad on Insurance Commissioner George Dale
A prominent plaintiffs attorney with ties to the Mississippi Attorney General's office recently took out a full-page ad in the Jackson Clarion-Ledger depicting state Insurance Commissioner George Dale as a pig wearing lipstick.

Attorney Richard "Dickie" Scruggs calls Dale "political toast," and the ad showed Dale in a bathtub being pampered at a "State Farm Beauty Salon."

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.

David Rossmiller, an insurance attorney and partner at Dunn Carney in Portland, Ore., who has been analyzing the Gulf Coast's insurance situation for LegalNewsline, said Scruggs sees Dale as a tool of the insurance industry.

"I believe Scruggs was already going to oppose Dale for re-election before the announcement of Dale's deal with State Farm, but that did steal a lot of Scruggs' thunder as well as take millions out of his pocket. I doubt he needs the money, but still, it was right almost in his hands and now it is gone," Rossmiller said.

Scruggs' firm earned $1.4 billion when it was hired by then-Mississippi Attorney General Mike Moore to negotiate the Tobacco Master Settlement Agreement in the 1990s, and recently made $26 million when 640 lawsuits against State Farm that made up part of Hood's class action suit against five insurance companies were settled.

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.

A report Thursday in the Jackson Clarion-Ledger says 83 percent of the 3,381 cases ordered to the Mississippi Department of Insurance's mediation program, established by Dale, have been settled, according to the department's numbers.

Dale has been told he will be kept off the Democratic primary ballot because he endorsed George Bush, not John Kerry, during the last Presidential election. He is fighting that, and could run as an Independent.

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."

Filed Under: State AGs


COMMENTS ON THIS ARTICLE:

No comments have been posted in the last 15 days!

SEND US YOUR COMMENTS ON THIS ARTICLE:


* - Required fields

Subject: *
Message: *
Contact Name: *
Contact URL:
Contact Email: *
This Is CAPTCHA Image
Write the characters in the image above: 

E-mail this article to a friend | Printer friendly format

MORE NEWS HEADLINES:
+ Abbott asked to opine on county's outside counsel - 3/19  
+ Idaho braces for lawsuit over insurance mandate - 3/19  
+ Settlement reached over nutritional supplement enrollment plan... - 3/19  
+ Goddard settles real estate suit - 3/18  
+ Stenehjem to seek fourth term as N.D. attorney general - 3/17  
+ Ohio pool company agrees to change business practices - 3/17  
+ AG Wasden faces possible pay cut - 3/17  
+ Nevada AG hails ruling on brothel advertising - 3/16  
+ Drug company to pay Florida $6.5 million for price manipulation&#... - 3/16  
+ Brown gets polluting hair products taken off store shelves - 3/16  


IN THE SPOTLIGHT:
Wednesday, March 10, 2010
Most of the judges on the New Mexico Court of Appeals get a failing grade when it comes to the "expansion of liability," according to a judicial evaluation report.
Read more...


+ 'Land of Enchantment' in 'Hellhole': Tort reform group calls New Mexico's appeals court 'pro-liability' - 3/2
+ Group puts the brakes on Honda class action settlement - 2/23
+ AG Brown, feds sitting out whisteblower suit against pipemaker - 2/18
+ Calif. AG hopeful vows to target public employee pension increases - 2/12
+ Nebraska AG Bruning's political star rising - 2/5
BROWSE BY STATE:
 
BROWSE BY AG:
 
BROWSE BY DATE:
 
LATEST LNL BLOG ENTRIES:
+ Abbott: Beware Dietary Supplement Scams and 'Miracle' Health Claims
+ Abbott's signs of a scam
+ AG McCollum on convicts in the mortgage industry
NEWS WIDGET:
Attention bloggers:
Add Record Headlines to your site!


fast + free- click here

NEWS | CONTACT LEGALNEWSLINE | ABOUT US | ADVERTISE | RSS © 2008 LegalNewsLine.com. All Rights Reserved.