LegalNewsLine Logo  
Thursday, February 9 2012 Twitter  feedburner  yahoo  Subscribe in NewsGator Online
News | Contact LegalNewsline | About Us | Advertise | RSS
Enter search keyword
 
clear
clear
NEWSLETTER
Receive our FREE weekly newsletter
click here
Today's Offers:

LNL MOST POPULAR ARTICLES
+ Hood critical of bill that would allow officials to hire outside attorneys
+ Study shows plaintiff bias in Philly courts
+ Man, startled by bottle rocket shot out of anus, sues frat
+ Real estate agent, mortgage broker found guilty of fraud
+ Coakley, Cuccinelli to debate health care law
LNL HOT TOPICS
+ Asbestos
+ Big Pharma
+ BP Oil Spill
+ Class Action
+ Dickie Scruggs
+ Federal Government
+ Financial Crisis
+ Global Warming
+ Hurricane Katrina
+ Lead Paint
+ Sub-Prime Mortgages
+ Tobacco
Hurricane Katrina 
story date  
State Farm turns tables, sues AG Hood
Hood.jpg
Hood
JACKSON, Miss. - Insurance giant State Farm says Mississippi Attorney General Jim Hood is harassing it and recently filed suit against him.

State Farm, one of Hood's post-Hurricane Katrina targets, claim Hood violated a Non-Prosecution Agreement the two sides reached in January when he reopened a criminal investigation into its claims-handling practices in the wake of the storm.

Three grand jury subpoenas were issued to State Farm before the agreement, which included a $5 million payment to Hood for investigative costs. A fourth was sent to State Farm in August.

"Specifically, the Fourth Grand Jury Subpoena seeks a wide array of documents from State Farm concerning State Farm's handling of Hurricane Katrina claims, precisely the same matters that Attorney General Hood agreed would not be investigated or prosecuted pursuant to his Jan. 23 Non-Prosecution Agreement with State Farm," the complaint says.

The complaint also notes a July letter from Hood to federal officials in Alabama that states he is engaged in "an ongoing investigation into what he believes is State Farm's fraudulent conduct, not only toward their own policyholders but also against the National Flood Insurance Program as well." State Farm argues the letter shows Hood's bad faith.

Hood reopened the criminal investigation "for the purpose of harassment," the company concludes.

Just weeks after Katrina, Hood filed suit against five insurance companies. He alleged they misrepresented the amount of damage caused by flood (covered by the federal NFIP) and wind (covered by the insurance company).

State Farm was the first to settle, closing 640 claims. Another agreement to begin an arbitration process to resolve approximately 35,000 claims fell through when a federal judge did not approve it. Since then, State Farm and former Insurance Commissioner George Dale instituted their own procedure to settle those claims, much to Hood's dismay.

He again sued the company in May, this time for not making their rejected settlement work. Had the settlement gone through, trial lawyer Richard Scruggs, who has contributed $44,000 to Hood's campaign and $250,000 to an opponent of Dale, stood to make $20 million.

State Farm filed the suit in September, though it was sealed from public record. On Nov. 2, Judge Michael Parker ordered it unsealed, revealing several motions submitted already by the two sides.

"It is unfortunate that they have publicly revealed the existence of this investigation for political gain," Hood said. "I will continue doing my job in a professional manner and will allow the cases to be resolved by the courts."

On Tuesday, Hood faces Republican challenger Al Hopkins in the state's general election.

State Farm adds that part of the intent of Hood's criminal investigation is revenge over the Rigsby sisters whistleblower case.

"(B)y reopening his criminal investigation of State Farm, Attorney General Hood seeks to chill State Farm's First Amendment rights of speech and association, and to coerce State Farm to participate in Attorney General Hood's attempt to chill the First Amendment right of access to courts exercised by another party, by pursuing a vindictive investigation of State Farm in retaliation for State Farm's refusal to attempt to coerce E.A. Renfroe & Company into dismissing or compromising civil litigation pending in the U.S. District Court for the Northern District of Alabama," the amended complaint says.




Filed Under: Hot Topics

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

MORE NEWS HEADLINES:
+ Judge approves $25M Katrina settlement - 7/26   read more
+ New 9/11 fund administrator once tangled with Miss. AG - 5/19   read more
+ Public nuisance cases 'like a knife fight in a dark alley' - 2/14   read more
+ La. SC hears Katrina damage case - 10/21   read more
+ Hood, State Farm settlement includes venue stipulation - 9/9   read more
+ Miss. media gets access to Hood/State Farm settlement - 9/3   read more
+ Insurer settles Katrina class action for $23M - 8/26   read more
+ Methodist Hospital wrongful death case settles - 5/26   read more
+ Defense begins in case against hospital over Katrina-related deat... - 5/25   read more
+ Plaintiffs rest in Katrina wrongful death lawsuit - 5/18   read more


IN THE SPOTLIGHT:
garrett.jpg
Wednesday, February 08, 2012
PHILADELPHIA (Legal Newsline) - A roundtable of federal and state judges from across the country will convene at the posh Ritz Carlton on Feb. 9 to address topics such as "Can MDL's keep up with state court trial settings;" "Priority of deposition examination;" "State and federal cooperation;" and "Forum non conveniens."
Read more...


+ Study shows plaintiff bias in Philly courts - 2/6
+ Fannie Mae offers examples of routine dishonesty in its fight against lenders - 2/3
+ Quaker City courts have troubled history; some reject 'plaintiff-friendly' criticism - 1/31
+ Madison County asbestos docket feeds off intake firm referrals - 1/19
+ Torts conference set for Feb. 8 in Philly - 1/18
BROWSE BY STATE:
 
BROWSE BY AG:
 
BROWSE BY DATE:
 
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.