“no class” in Citizen’s hearing

What was scheduled as class action hearing on $35million Citizen’s settlement turned out to be a display of “no class” at all.

Rebecca Mowbray has the story – and I can’t help but wonder what she was thinking yesterday as she was typed Judge orders lawyer to jail after fight breaks out in Citizen’s class action hearing.

A fight broke out this morning at a hearing in a class action lawsuit against Louisiana Citizens Property Insurance Corp., ending with one lawyer on the ground and another being ordered to spend the night in jail.

Attorneys J. Robert Ates and Madro Bandaries exchanged words at Orleans Parish Civil District Court, then suddenly appeared to be on the verge of a fistfight when Bandaries fell to the ground.

Some attorneys stepped in to break up the fight while others ran outside to alert security and find Judge Kern Reese, who is presiding over the hearing.

Reese ordered Ates to spend a night in jail and pay a fine of $100, despite his pleas to be allowed to offer his testimony. Ates, who is representing an objector to the proposed $35 million settlement, was taken away in handcuffs.

“The one thing I am not going to tolerate is lawyers being unprofessional,” Reese said after taking testimony from several witnesses to the fracas and concluding that Bandaries, who brokered the proposed settlement, had been attacked.

Today’s hearing, which is ongoing, is being held to determine the fairness of the proposed $35 million settlement of charges that Citizens didn’t handle claims quickly enough after Hurricane Katrina. If the settlement is found to be fair, it will pave the way for the settlement to be finalized.

Attorneys in a rival class action suit in Jefferson Parish say the settlement in New Orleans shorts policyholders and raids their effort. Their case has a summary judgment hearing scheduled for January and a trial date in March.

At this writing, Insurance Commissioner Jim Donelon is on the stand.

Will update as information becomes available.