The Louisiana Supreme Court has put the brakes on hundreds of hurricane-related property insurance lawsuits filed by the Houston law firm of McClenny, Moseley and Associates (MMA) and appointed a trustee to oversee the mass litigation.
The court’s orders on May 10 and May 18 are the latest Louisiana legal actions taken by state and federal judges looking at potentially fraudulent conduct and unfair business practices by MMA, which last year filed hundreds of Hurricane Ida property-damage claims on behalf of Louisiana property owners.
“In order to protect the public, the administration of justice and the interests of affected litigants, the Louisiana Supreme Court has stayed the multitude of hurricane and storm-related suits filed by … MMA in Louisiana state courts pending further orders of the Supreme Court,” the high court said in a news release.
The appointed trustee, attorney Edward Walters Jr. of Walters, Papillon, Thomas & Cullens LLC, will review information on MMA compiled by the state Office of Disciplinary Counsel and ensure MMA clients have access to new counsel, the Supreme Court said.
““The Supreme Court took this extraordinary action due to the serious and unprecedented circumstances presented by MMA’s alleged recent actions and the possible consequences to affected litigants.,” the court’s chief justice, John Weimer, said in a prepared statement. “We appreciate the assistance of our judges and Mr. Walters in protecting the orderly administration of justice and the hundreds of parties potentially affected by the alleged conduct of MMA.”
The May orders come in the wake of the high court suspending MMA’s Louisiana supervising attorney, Richard William Huye III, from practicing law pending further court actions.
Matthew Monson, an attorney representing insurance companies, questioned whether the law firm would survive the continuing onslaught of legal actions.
“Between the numbers of people who have been laid off by the firm, the dollar value of lawsuits filed against the law firm, the $2 million in regulatory fines that have been issued against the firm and the scrutiny from multiple bar associations, it’s hard to believe that this firm will continue to be a going concern for much longer,” Monson told the Louisiana Record.
He said he expected to see further actions against the Houston firm as the courts work to ensure property owners are informed of their rights.
““The Louisiana Supreme Court needs to make sure that the policyholders of Louisiana have ethical legal counsel in place prior to the two-year statute of limitations on Hurricane Ida property insurance claims,” Monson said. “Also, this action appears to be a precursor for further discipline against William Huey, possibly including permanent disbarment.”
Under the terms of the court’s orders, the chief judge in each state court will have 20 days to compile information related to hurricane- and storm-related lawsuits filed by MMA and provide it to the Office of Disciplinary Counsel.