La. Supreme Court stays all hurricane suits filed by embattled Houston firm

Lake Charles, LA (KPLC) - The Louisiana Supreme Court has taken action regarding a Houston law firm already under criticism for its handling of hurricane lawsuits.

The Louisiana Supreme Court has stayed the “multitude” of hurricane and storm-related lawsuits filed by McClenny, Moseley and Associates “pending further orders from state court.

The high court issued the stay on May 10, including in the order that the chief judge of each district court is to provide each hurricane and storm-related lawsuit filed by McClenny, Moseley and Associates to the state Office of Disciplinary Counsel. A stay may be lifted by the presiding judge in each case if there is mutual consent of the parties to proceed with the lawsuit.

On May 18, the Supreme Court appointed Edward J. Walters Jr., of the Baton Rouge law firm Walters, Papillion, Thomas, Cullens, as a special trustee to handle information received by the Disciplinary Counsel and contact clients represented by McClenny, Mosele, and Associates about obtaining new counsel.

“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. 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,” Louisiana Supreme Court Chief Justice John L. Weimer said in a statement.

Federal Judge James David Cain slammed the Houston law firm in November of last year, criticizing it for filing over 1,400 last-minute cases related to Hurricane Laura. He said he suspected the large number of cases filed in such a short time to be a possible sign of the firm preying on hurricane victims.

Earlier this month, Louisiana Insurance Commissioner Jim Donelon fined the firm $2 million for receiving and negotiating insurance settlement checks without the policyholder’s authority.

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