Texas law firm suspended in Louisiana federal court for Hurricane Laura suits

LAKE CHARLES — Houston-based law firm McClenny, Moseley and Associates has been suspended from practice in Louisiana's Western District federal court over its work on Hurricane Laura insurance cases.

The firm filed at least 1,500 lawsuits just before the deadline to initiate Laura litigation in August. District Judge James Cain Jr. of Lake Charles took notice of the volume and, in a suspension order Saturday, said he had been "concerned about the misconduct of attorneys from McClenny Moseley & Associates."

Issues included duplicate filings, suits filed on insurance claims that had already been settled, suits filed against insurance companies that had no policy with the homeowner named as plaintiff and filing suits and signing checks without authorization.

"These issues stand in stark contrast to the way thousands of other hurricane cases have proceeded through this court since December 2020," Cain said. "Indeed, over half of the 7,000 hurricane Laura and Delta cases filed have already been resolved and no firm has drawn anything close to the level of ethical concerns" as McClenny, Moseley & Associates.

Eastern District court also concerned

Cain also noted sanctions and disciplinary actions against the firm in the New Orleans-based Eastern District and Louisiana overall as a reason to bar McClenny's attorneys from the Western District Court.

The Eastern District's chief judge, Nannette Jolivette Brown, on Thursday put all of the firm's cases there on hold, pending further review. Cain had done the same in the Western District in October 2022, resulting in Saturday's suspension.

Louisiana Insurance Commissioner Jim Donelon has issued a cease-and-desist against the firm concerning its arrangement with Alabama-based Apex Roofing and Restoration, in which the two worked together to sign on clients for the firm through roofing contracts, at times without the homeowner's knowledge. A portion of insurance proceeds later went to the law firm for its representation of the insured, another portion to the roofing company.

The law firm has defended its actions by saying it is helping storm victims attain insurance proceeds and recover from hurricanes. It has hired legal counsel to represent its attorneys in a case in the Eastern District. Apex has denied any wrongdoing.