The Louisiana Department of Insurance has taken the extraordinary step of submitting an administrative motion in opposition to a Texas-based regulation agency. I’ve been working within the first-party insurance coverage claims enterprise for over forty years. I’ve by no means seen something like this.
Law corporations and legal professionals are normally ruled and prosecuted by the State Bar Associations when allegations of wrongful conduct happen. Lawyers, like all residents, may also be prosecuted by state and federal prosecutors for breaking prison legal guidelines. This normally leads to disbarment or suspension from the observe of regulation if the crimes are critical. I can’t recall an insurance coverage commissioner ever bringing an motion in opposition to legal professionals in an administrative motion. The allegations on this matter are very critical.
They embrace:
3.
The LDI has proof that McClenny Moseley & Associates, PLLC, and its principals, managers and/or companions William Huye Ill, John Moseley and James McClenny (collectively referred to herein as “MMA”) participated in a fraudulent scheme involving fraudulent insurance coverage acts.
4.
According to info and proof now within the possession of the LDI, MMA, in reference to a contractual association between MMA and APEX, fraudulently misrepresented to a number of Louisiana insurance coverage corporations that MMA had been retained by Louisiana insureds as their legal professional and/or authorized counsel associated to the settlement of hurricane associated insurance coverage claims with out the information of the insureds MMA presupposed to symbolize.
5.
According to a transcript of the court docket continuing held on February 1, 2023, by the United States District Court for the Eastern District of Louisiana, with The Honorable Michael B. North presiding, MMA admitted to having despatched letters of illustration to insurance coverage corporations on behalf of insureds, whereas MMA didn’t symbolize these insureds, however slightly represented APEX. During the continuing, when questioned by the Judge, MMA admitted to submitting one lawsuit and settling eleven (11) claims on behalf of insureds with out the insureds’ information and consent.
6.
Upon the conclusion of the February 1, 2023, Federal Court listening to detailed above, The Honorable Michael B. North ordered MMA, by way of its counsel of document, William Huye Ill, to provide complete lists associated to particular situations the place MMA supplied authorized illustration to Louisiana insureds and in addition particular situations the place MMA mispresented to Louisiana insurers that they represented insureds when the truth is they represented APEX and never the insured.
7.
On February 13, 2023, by way of written responses to Orders issued by the Honorable Michael B. North, MMA admitted to 856 misrepresentations to Louisiana insurers that MMA was retained by the insureds/owners, when the truth is MMA didn’t symbolize these insureds/owners relative to claims for fee and advantages underneath these insurance coverage insurance policies.
8.
In one of many 856 information, whereby MMA admitted to misrepresenting themselves to have been retained by insureds Michael and Holly Caffarel, in relation to a declare for advantages following Hurricane Laura, the LDI has discovered by way of a criticism filed by counsel retained by the Caffarels that the Caffarels solely discovered of the fraudulent declare illustration when Chase Bank, the mortgage holder and listed payee on the insurance coverage proceeds settlement verify, endorsed the verify for damages sustained from Hurricane Laura and despatched the verify to the Caffarels.
9.
In a separate admission in response to the Order issued by Judge North following the February 1, 2023 listening to, MMA admitted to the Court that it had settled 9 (9) claims whereas MMA didn’t symbolize the insureds related to these claims.
10.
Transcripts obtained from the LDI of a court docket continuing held on December 13, 2022, earlier than the United States District Court for the Western District of Louisiana, with The Honorable James D. Cain, Jr. presiding, revealed that MMA obtained and deposited a verify, dated August 24, 2022, from ‘Allstate’ representing proceeds from an insurance coverage settlement. The settlement GileGk was made payable to MMA, Mel Addison and Adriana L. Addison (the insureds/owners) and Accord Services, Inc. Accord Services, Inc. is listed because the mortgage holder for the property for which the insurance coverage advantages have been claimed on and paid. According to the unrefuted testimony by Kermith Sonnier, the proprietor of Accord Services, Inc., MMA was by no means given permission to signal the identify of Accord Services, Inc. to the settlement verify at subject. Mr. Sonnier additional testified that he had by no means spoken with MMA concerning the verify….
The Louisiana Department of Insurance issued a Cease and Desist Order to the regulation agency. The regulation agency faces important administrative penalties and has 20 days to file a response to the allegations. As at all times, simply because allegations have been made, it doesn’t imply that the allegations are true or that legal guidelines have been damaged.
What is so completely different on this matter is that the info are largely taken from authorized proceedings involving the regulation agency. The Louisiana Department of Insurance didn’t should conduct a particular investigation. It merely learn court docket filings and transcripts of hearings.
Lawyers can’t say that they symbolize anyone when they don’t. Lawyers can’t signal checks for folks with out permission. Lawyers can’t settle insurance coverage claims for non-clients. These are critical allegations of unethical conduct that have to be investigated by the Louisiana and Texas State Bars.
The overwhelming majority of all legal professionals I come throughout are hardworking and moral. The notion that every one legal professionals are making a fortune is just not true. Lawyer jokes usually are not referred to as for.
The overwhelming majority of all legal professionals I communicate with and people I name colleagues, care about folks and take an excessive amount of satisfaction within the ethics of the occupation. They fear about our reputations and anticipate others to behave ethically. I obtained quite a few emails and calls from legal professionals about this on Friday and Saturday, most in disbelief. Many expressed outrage.
We will see what comes subsequent. People are entitled to a presumption of innocence. But this story looks as if it’s simply to start with levels, and there’s a lot extra that will turn out to be public because the entirety of this unfolds in very public boards.
Thought For The Day
Searching is half the enjoyable: life is rather more manageable when regarded as a scavenger hunt versus a shock social gathering.
—Jimmy Buffett