Critics cry ‘sham’ as Citizens approves $6 million contract to West Palm Beach firm
By Charles Elmore, The Palm Beach Post, Fla. | |
McClatchy-Tribune Information Services |
Records requested by
Afterward, a former state insurance consumer advocate called deals like this one, with fees up to
Board member
State Rep.
"Table this item," Artiles urged the board at its meeting in
Citizens executives defended the arrangement, saying they followed proper rules for bidding contracts. President
Board member
Citizens general counsel
Two board members abstained, including
Artiles said he has had trouble getting information he considers reliable from Citizens about how much it is spending on attorneys, but estimated Citizens could save
Gilway said plaintiff attorneys would love that but it would only encourage more lawsuits and raise costs to all policyholders.
The coordinating counsel job does not necessarily involve direct courtroom work, but rather helping oversee strategy for lawyers the company already pays. Company officials said effective management can mean identifying cases to settle quickly and winning more often in cases that do go to trial.
Attorney
Since 2012, Ackerman, Link & Sartory has served as coordinating counsel for sinkhole lawsuits, and is now positioned to play that role for all claims litigation. It reached the billing limits on a previous
Company documents making the case for the firm's value showed average payouts from lawsuits have recently dropped near
Artiles said more investigation was needed on such issues as whether bidding requirements for both the first and second contracts favored the Ackerman firm. Citizens officials said the process was fair and open, with nine firms bidding on the first contract and 15 on the second.</p>
Grady has been described in records as being "of counsel" at Ackerman, Link & Sartory in the past, which can mean a lawyer is employed for consultation or work on particular cases without necessarily being a partner or associate. Attempts to reach Link and Grady for comment were not succcessful.
Sumner said Grady's relationship to the firm was terminated at the time bids went out and Grady confirmed in writing to company officials that he would not receive any residual compensation.
The Citizens claims committee chose not to endorse the
One of the criticisms of another deal this spring -- one that approved up to
"The giveaways to allies of
How they voted
Citizens board vote Friday on
Yes: Chairman
No:
Abstaining:
___
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