Pleas and fleas keep you scratching

Those speculating about pleas to come from USA v Moultrie and comparing the case to USA v Scruggs may find this perspective on pleading guilty of interest.

Some folks had an itch about Scruggs that they used his indictment to scratch. If there are any fleas on Musgrove, chances are there’ll be a lot more scratching in USA v Moultrie.

Given their history of covering the beef plant failure and tax payer loss, the Clarion-Ledger is certain to keep a focus on these latest developments – Salter alone has three blog posts going.

Clarion Ledger Editorial Reveals Behind the Scenes Politicing

I read today’s Clarion Ledger Op-Ed in support of HR 3121 and found some very interesting tidbits buried in the piece most notably that Senator’s Cochran and Wicker have joined Louisiana Senators Landrieu and Vitter in placing a senatorial hold on S. 2284, the re-authorization bill for the National Flood Insurance Program. As we previously noted, S. 2284 does not bring structural change to NFIP and does not contain the multi peril wind provisions found in HR 3121. While the old saying “better late than never” certainly applies to Senator Cochran and his newly found zeal to represent the interest of his coastal constituents we do appreciate both he and Senator Wicker joining the fight to solve our coastal insurance crisis. Continue reading “Clarion Ledger Editorial Reveals Behind the Scenes Politicing”

Another Great Editorial in Today’s Clarion Ledger

Here is another very well reasoned editorial from our friends at the Clarion Ledger in Jackson:

Insurance: Katrina demonstrates need for bill

Fourth District U.S. Rep. Gene Taylor says he will fight again in 2008 for a bill to add wind coverage to federal flood insurance for protection from another hurricane like Katrina.

But, if so, he’s going to have to find an ally in the Senate.

The House bill, which Taylor co-sponsored, with the support of House Speaker Nancy Pelosi, D-Calif., added wind coverage to the National Flood Insurance Program. But the wind coverage provision was not included in a bill the Senate Banking Committee approved, The Associated Press reported. Sen. David Vitter, R-La., has blocked a vote by the full Senate because optional wind coverage and higher coverage limits were not included.

The Senate bill was sponsored by Banking Committee Chairman Chris Dodd, D-Conn., and Richard Shelby, R-Ala. Taylor said he can understand Dodd’s objections because of the insurance interests headquartered in his state. “Shelby is the one I keep scratching my head over,” he said, because of his constituents in coastal Alabama.

Republican Mississippi Sen. Thad Cochran supports the multiple-perils bill. He should lobby his colleagues for it. Democratic Sen. Hillary Rodham Clinton had introduced a similar bill in the Senate.

Taylor’s bill had already been massaged by the House to meet potential objections. Pelosi led a 13-member congressional fact-finding mission to the Coast in August. Listening to victims at a town hall meeting in Bay St. Louis, she pledged to help, but even she acknowledged: “We’re up against a mighty force (lobbying efforts of the insurance industry).”

Pelosi helped push Taylor’s “multi-peril” Flood Insurance Reform and Modernization Act of 2007 through the Financial Services Committee in July, and it went to the Senate with full House backing as HR3121. It would allow flood insurance policyholders to purchase wind insurance or as a stand-alone policy, and increases limits.

Catastrophic insurance for hurricanes remains a need for U.S. coastal areas nationwide, so it could – and should – be resurrected. Mississippi is not alone in facing higher insurance premiums, if it’s available.

As has been noted in www.clarionledger.com/forums under “Katrina-related issues,” home insurance rates are skyrocketing in all the nation’s coastal areas. The experience with Katrina on the Coast, still waiting for insurance and government promised relief, is evidence for HR3121.

As one reader wrote: “My husband and I chose to stay here, even though we lost everything we owned, because of his business. It cost everything we had and then some to build a new home, miles away from the water and insurance was still astronomical. But … if we waited for progress to be made down here, we would be dead.”

HR3121 should not be allowed to die. The very life of the Coast could be at stake.

Good Editorial in Todays Clarion Ledger

Here is a well reasoned opinion on the impact of the current legal mess and it’s impact on coast residents seeking justice.

“Katrina lawsuits: Coast residents want justice

The Clarion-Ledger

For Mississippi Hurricane Katrina victims, hope for recovery from the storm took a sickening turn with the charges lodged against attorney Dickie Scruggs.

State Farm Fire and Casualty Co. is seeking to have attorneys with Scruggs’ “Katrina Litigation Group” representing policyholders thrown off a key case because the insurer claims the lawyers have behaved unethically.

Scruggs withdrew from most of his firm’s Katrina cases after his indictment on charges he tried to bribe a judge for a favorable ruling in a dispute over legal fees.

The newly formed group, which includes members of Scruggs’ legal team, is now handling hundreds of cases on behalf of Coast policyholders in “wind vs. water” disputes, alleging the insurer failed to honor claims.

State Farm claims that Scruggs and members of his team have committed “highly unethical acts,” such as illicitly obtaining internal claims records, and have “irreparably perverted the litigation process.”

Scruggs’ indictment has muddied the water for policyholders. The more cases are delayed, the longer the recovery can take – if homeowners don’t just give up or move away. About 14,902 families still are in temporary housing units in Mississippi.

In clarionledger.com’s Forums, under Katrina-related issues, Mississippi Insurance Forum, readers commiserate. Says one: “‘Ain’t life grand?’ For some people, maybe, but nothing’s grand for the people on the Coast that were ‘slabbed’ by Katrina, ‘stabbed’ by their ‘good neighbor,’ and forced to live out a horror story that even Hitchcock would find frightening.

“Life’s not going to be grand for anyone in our state until we get to the bottom of this mess … Unfortunately it’s going to take a long time – longer, I fear, that folks with valid claims can hold on.”

Mississippians have the “want to” for rebuilding. The legal disputes need to be resolved.”