Diamond Jim Donelon where are you? Insurers are Milking the System.

Diamond Jim Donelon’s asleep at the wheel.

Recently, Mississippi attorney Richard "Dickie" Scruggs told members of the Louisiana Association for Justice that insurance companies are ripping off the National Flood Insurance Program by altering engineering reports to falsely conclude that rising water, not wind, caused damages from Hurricane Katrina.

That’s right: RIPPING OFF!

Scruggs explained, "They instructed the adjusters to max out the flood (insurance)." Scruggs warned, "Given what we know now about State Farm, it would in inconceivable if it weren't going on in Louisiana, too."

Diamond Jim’s supposed to be looking out for Louisiana policyholders. But, he hasn’t heard the warning.

As Louisiana’s Insurance Commissioner, why hasn’t Diamond Jim investigated State Farm and other Louisiana insurers to determine if they’ve altered engineering reports to falsely conclude that rising water, not wind, caused damages from Hurricanes Katrina and Rita?

Well, I apologize for such a naïve question. We know why Diamond Jim hasn't done anything. Don’t we?

Diamond Jim’s playing “Mickey the Dunce.” Insurance companies are substantial contributors to the Republican Party. Republican heavy-hitters have told Diamond Jim that insurance companies are off limits.

Here’s how it’s done in other states. In 2003 it was discovered that 21st Century Insurance Group secretly contributed $950,000 to the California Republican Party and 15 county committees just before the 2002 general election.

People in Louisiana are still hurting from Hurricanes Katrina and Rita! So what does Diamond Jim propose? A corporate welfare scheme. He wants to pay insurance companies to do business here! Hey, Diamond Jim, don't pay insurance companies a penny! Do your job and investigate them!

Appeals court restores UCI liver transplant patient's medical negligence lawsuit

A lawsuit against a University of California hospital was reinstated after an appeals court ruled that the plaintiff's argument "demonstrated good cause to restore the case." The palintiff accepted and then later refused a $50,000 settlement for her lawsuit, opting instead to restore her case. The Associated Press, San Diego Union Tribune 04/17/2007 Read Article: San Diego Union Tribune

Our Soldiers Need Good Lawyers

Few among the American public know that members of the U.S. military are barred from suing for medical malpractice and negligence by the government. That’s hard to believe isn’t it. So, let me repeat it: Members of the U.S. military are barred from suing for medical malpractice and negligence by the government.

"Whether it is a military doctor cutting off the wrong leg or a military gasoline station cutting a brake line, military personnel are not allowed to seek legal relief as other citizens can."

A series of rulings by the Supreme Court in 1950—known as the Feres Doctrine—created the loss of legal protections for members of the military even in peacetime.

Congress needs to amend the Federal Tort Claims Act to end this "disastrous" Feres Doctrine. Jonathan Turley, USA Today 04/12/2007 Read Article: USA Today

Johnson & Johnson Recall Children's Listerine

Four million bottles of plaque-detecting Listerine for children were recalled after Johnson & Johnson discovered the mouthwash was contaminated by bacteria. Preservatives in the rinse did not kill four types of bacteria, which could pose a risk to consumers with weak immune systems.

The bacteria found included a strain that can cause urinary tract infections, blood poisoning and respiratory infections. Yuck!

Bloomberg News , The Dallas Morning News 04/12/2007 Read Article: The Dallas Morning News

Ford Escape SUVs Recalled Because of Engine Fires

More than 500,000 Ford Escape vehicles are being recalled after 50 reports of engine fires. The company is notifying dealers and owners that the fires are being caused by corroded brake parts. Owners will not be charged if the anti-lock braking system component requires replacement. Bloomberg News , The New York Times 04/12/2007 Read Article: The New York Times

FDA Aware of E. Coli Threats But Does Nothing

The FDA knew of the contamination risks at the Georgia peanut butter plant and Calif. spinach farms that were involved in recent E. coli outbreaks. According to agency documents, officials only took limited steps to address the problems. The incidents show that the FDA is "incapable of adequately protecting the safety of the food supply." Elizabeth Williamson, Kansas City Star 04/23/2007 Read Article: Kansas City Star

No Evacuation Plan for Hospitals: Negligence or Malpractice?

The Louisiana Supreme Court is considering a question that could shift hundreds of Katrina-related claims against hospitals away from the courts and redirect them to a state malpractice panel. Plaintiff attorney Laurence Best of New Orleans represents two men whose mother died at Methodist Memorial Hospital in the days following Hurricane Katrina. This case is the first of several hundred similar claims. Houma Courier,Associated Press, 04/12/2007

Allstate Hurricane Trial: Policyholders Got Conflicting Information

Policyholder Robert Weiss, who sued Allstate Insurance Co. after his home was destroyed by Hurricane Katrina, pointed out that because hurricanes are wind and water, to exclude coverage of either one of those causes of damage is "ridiculous." One issue the trial explores is whether an engineering report produced by a consulting firm was altered to favor the insurers' position. Associated Press, New Orleans Times-Picayune 04/11/2007 Read Article: New Orleans Times-Picayune

Donelon Unware Dept. Approved Controversial Insurance Risk Model

Corporate Welfare - Gov't Cover-Up: Insurance Commissioner Jim Donelon said he was not aware that the controversial RMS 60 hurricane computer model had been approved for use in Louisiana. Donelon ordered insurers to temporarily stop using the RMS model that is known to allow insurers to show cause for higher rates. Donelon said he asked insurers that have had rate increases approved but not yet implemented to hold off using the storm model until Florida completes its review of the RMS product. Rebecca Mowbray, New Orleans Times-Picayune 04/20/2007 Read Article: New Orleans Times-Picayune

Legality of Donelon's Insurance Program Questioned

Corporate Welfare: The House Insurance Committee grilled state and insurance officials over whether a proposed grant of $100 million in state funds can legally be given to insurance companies. The plan, announced by Gov. Blanco and Insurance Commissioner Jim Donelon, would provide up to $100 million in matching grants to insurers that would write new homeowners' business in Louisiana. Ed Anderson, New Orleans Times-Picayune 04/19/2007 Read Article: New Orleans Times-Picayune

State Farm Ordered to Pay Largest Fine Ever in Louisiana

State Farm was ordered to pay $18 million to about 18,000 of its auto insurance policyholders and refund about $4.7 million in overpayments to customers, plus interest. The Louisiana Department of Insurance said this seems to be the largest fine ever paid by an insurer in the state of Louisiana. State Farm reportedly included no-fault wrecks when it calculated rates for new policies written between April 2003 and March 2006, a practice which is against Louisiana law. State Farm is in the process of contacting affected customers. Rebecca Mowbray, New Orleans Times-Picayune 04/18/2007 Read Article: New Orleans Times-Picayune

Court Allows Injured Workers to Stack Disability Payments

The WI Supreme Court ruled that the amount of disability payments a worker receives may be increased if they require multiple surgeries for the same injury. A DamierChrysler employee who requires two knee surgeries for the same injury could earn double his permanent partial disability. The company argued that such awards could not be stacked, but the court upheld a Labor and Industry Review Commission ruling to increase the employee's disability payments. The Associated Press, Ft. Worth Star Telegram 02/02/2007
Read Article: Ft. Worth Star Telegram

Tort Reform Group Fails to Disclose Source of Funding

The American Tort Reform Association (ATRA) and the American Justice Partnership, both business-friendly groups that gave $785,000 into Illinois politics this year, appear to have violated the state's campaign finance laws.

The groups contributed directly to a Republican candidate and did not file a campaign finance report nor did they file as nonprofit organizations. A spokesman for an election watchdog group says some large donations, including $1.8 million from the U.S. Chamber's Institute for Legal Reform, were made directly to the Republican Party and did not have to be reported.

In 2004, a contentious race for the Illinois Supreme Court between the two leading candidates set a national record of $9 million in campaign spending. Adam Jadhav, St. Louis Post Dispatch 02/02/2007 Read Article: St. Louis Post Dispatch

Tornadoes Should Not Affect State Insurance Market

Despite having killed 20 residents, the tornadoes that recently struck Central Florida will not have serious effects on insurance rates. The state has suffered eight hurricanes since 2004 and just two hurricanes resulted in 2.7 million claims. In the past year, thousands of FL policyholders have had property insurance rates double or triple. Lynn Waddell, The New York Times 02/06/2007 Read Article: The New York Times

Banks' Internet Security Ineffective

Researchers at Harvard and MIT have tested the effectiveness of site-authentication images, an Internet security measure used by some major financial service providers. Under the system, a customer should not enter his online passwords if his chosen image is not displayed on his login page. Of the 60 individuals observed in the study, 58 entered their passwords without the image.

Brad Stone, The New York Times 02/05/2007 Read Article: The New York Times

Insurers Refuse to Renew Policies along East Coast

Insurers are refusing to renew policies in Long Island and along the New York coastal area for fear of hurricanes.

Insurers claim they are "overexposed" in certain areas and are cutting back to avoid huge payouts. State law limits the yearly number of nonrenewals to 4% of a company's policies.

Richard J. Dalton, Newsday 02/02/2007
Read Article: Newsday

Katrina Victims Can Sue Army Corps over 'Mister Go'

U.S. Federal District Judge Stanwood Duval has ruled that residents of areas flooded by water that traveled through a New Orleans navigation channel during Hurricane Katrina can sue the U.S. Army Corps of Engineers.

The judge ruled that the Mississippi River-Gulf Outlet (a/k/a MR GO) is a navigation channel, not a flood control project, and is, therefore, not covered by a federal law that provides immunity from damages due to failed flood-control projects. Reuters,, Reuters 02/02/2007

Read Article: Reuters

Basic Procedures Inhibit Spread of Hospital Infections

John Hopkins researchers reported that simple and inexpensive procedures such as hand-washing can have a drastic effect on the spread of dangerous infections within hospitals. According to the Centers for Disease Control and Prevention, about 90,000 Americans die every year from hospital-contracted infections. LA Times, LA Times 12/28/2006Read Article: LA Times

Sierra Club Joins Legal Battle Against Coal Plants

The Sierra Club is trying to join a lawsuit filed by Environmental Defense that would block the TX governor's plan to speed the approval process for the construction of 18 new coal-fired power plants. The lawsuit seeks to overturn an order that would speed up consideration of permits for the plants. Opponents of the plants argue that the TX governor lacks authority to set time limits on decisions by administrative law judges. The Associated Press, Ft. Worth Star Telegram 12/27/2006Read Article: Ft. Worth Star Telegram

Baton Rouge Federal Court Goes Digital

On March 1, 2007, all filings in federal court in Baton Rouge must be filed electronically. Only inmates or persons not represented by a lawyer will be allowed file paper except "special permission cases" as approved by a judge. The clerk's office offers an online tutorial and remote assistance via computer. The Advocate 12/28/2006Read Article: The Advocate