CHARLESTON, W.Va. — After Secretary of State Mac Warner objected to a $1 million settlement for four fired employees, state lawmakers are asking whether executives should have final say-so on settlements.
“Did the Secretary of State get to have any final say of going forward or not?” House Finance Chairman Eric Nelson asked during a legislative interim committee meeting Sunday evening.
“What is the policy as it relates to an agency head or executive branch head signing off?”
When Warner took office in January 2017, he fired 16 employees, and two more were fired months later.
A dozen of those employees filed suit, claiming Warner filed them for political reasons.
In September, four of those employees settled with the state Board of Risk and Insurance Management for $1 million. The others are still pending.
Warner has objected to the way the state handles settling lawsuits, writing a letter to BRIM to express frustration.
“The way this State handles insurance settlements needs to be completely redone,” Warner stated in a September release to media.
The release from his office came with the heading, “Outrageous Jackpot Justice Continues to Flourish in WV!”
Warner called on state legislators to study the current structure.
“This is an issue that few know about, and when you do find out about it as a public official – the process does not allow elected officials to have a say in the outcome,” Warner stated.
Lawmakers did ask about the process during a Sunday evening meeting of the Joint Government and Finance Committee.
Mary Jane Pickens, executive director for the Board of Risk and Insurance Management, told lawmakers that Warner had been involved and received updates.
“He was aware, Pickens said. “He was present at the beginning of mediation. BRIM staff had very frequent contact with his defense counsel.
“My understanding and belief was that he was aware and understood it was going forward. And, I believe, accepted that.”
The Board of Risk and Insurance Management has adopted a statement endorsing its procedures on the wrongful termination cases.
Pickens acknowledged state policy does not give state executives or agency chiefs the final say on settlements.
“It is not a consent policy,” she said. “So the actual policy allows settlement to occur without the consent of the insured. In my opinion it needs to be that way.
“We also have to worry about the whole program. We believe the best approach is to have a policy like we do that does not require the consent of the insured to settle. People have strong, strong feelings about that matter.”
House Minority Leader Tim Miley, a plaintiffs attorney, spoke up to say the agency needs to use its own expertise to weigh the financial risks of going to trial rather than settling.
“There’s always a risk of getting a defense verdict in trial,” said Miley, D-Harrison. “There’s always a risk of getting a verdict of more than you can settle a case for, correct?”