The Louisiana Supreme Court has appointed an attorney to oversee “most hurricane and hurricane-related” lawsuits filed in state courts by McClenny Moseley and Associates.
In an order posted online Thursday, the high court named Edward J. Walters Jr., along with Walters, Papillion, Thomas and Cullens, as special trustees. He was tasked with compiling a list of lawyers “in good standing” and ready to assume representation of former MMA clients and “facilitate the return or transfer of client files to new advice to clients.” He was also ordered to contact former MMA clients to find out if they retained new representation and if not, to refer them to a list of attorneys available to assist them.
The Supreme Court on May 10 placed a stay on all storm damage cases filed by MMA in state courts. The law firm conducted a massive robo-texting and email campaign to sign up clients and filed thousands of lawsuits in federal courts, many of them against wrongful insurers and often by name of homeowners who are already represented by other attorneys.
The May 10 order directs the chief judge for each state court to compile a list of all typhoon and typhoon-related cases filed by the MMA within 20 days and submit the case name and docket numbers of the Office of Disciplinary Counsel. The office in March suspended the law license of MMA’s New Orleans managing partner, William R. Huye III, and is conducting an investigation that could lead to additional sanctions.
Louisiana Insurance Commissioner James Donelon was fined by the MMA $2 million for what he called an “insurance fraud scheme.” Federal judges in the eastern and western districts of Louisiana also sanctioned the company and its attorneys.
New Orleans insurance defense attorney Michael Moseley, whose personal investigation prompted federal courts to investigate MMA’s filings, praised Walters’ appointment in a LinkedIn post.
“Mr. Walters is a well-known and respected attorney who will ensure that victims of bad behavior in MMA have access to proper legal representation,” he said.
The Supreme Court order specifically states that Walters does not have an attorney-client relationship with MMA’s former clients.
Monson said many of MMA’s former clients may have lost the opportunity to pursue lawsuits against their insurers because Louisiana’s two-year statute of limitations for property damage claims has expired. .
Monson said he personally compiled a list of 25 lawsuits filed by the MMA against the wrong insurer that could no longer be filed against the correct carrier because the statute of limitations had expired. During an April 26 hearing before Magistrate Judge Kathleen Kay, an attorney representing State Farm said he was aware of 78 other wrongful-claims filed against the carrier. Monson said if those claims are for damage caused by Hurricane Laura — which hit the Louisiana coast in August 2020 — those cases won’t be refiled.
Monson said the only recourse for claimants wronged by MMA’s incompetence is a malpractice suit. He said a lot of money was at stake. The 25 lawsuits he knows of that have been filed against the wrongful insurer claim more than $1.8 million in damages, he said.
Photo: This Aug. 27, 2020 file photo, buildings and homes are flooded after Hurricane Laura near Lake Charles, La. Homeowners often make four key mistakes with their property insurance during hurricanes. They don’t have flood insurance, they don’t get the coverage they need in time, they carry a deductible that is too high or they don’t have enough coverage. (AP Photo/David J. Phillip, File)
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