CHARLESTON, W.Va. — Secretary of State Mac Warner continues to urge lawmakers to consider if agency leaders should have greater say in whether lawsuits against the state are settled or taken to court.
Warner was asked about the issue Monday during his agency’s budget presentation before the Senate Finance Committee.
“I have to ask you about the lawsuits you guys had. What was the total cost of those?” asked Senator Corey Palumbo, D-Kanawha.
“According to papers, $3.2 million,” Warner responded. “And maybe legal fees on top of that.”
The state, through the Board of Risk and Insurance Management, settled cases with 12 former employees who filed lawsuits after being fired from the Secretary of State’s office.
“I ask not to bring up a sore subject,” Palumbo continued, “but I understand you’ve brought up changing the way those claims are handled in BRIM. Can you explain?”
Warner said he could.
“What we have is a process issue here. It’s the way BRIM handles these claims, with a propensity to settle, rather than try the cases,” he said. “That is something where I think a large amount of taxpayer dollars are going pay off and negotiate settlements in cases that should be tried.
“I would like, as a board of public works member, a constitutional officer, to be a part of that process to be able to say whether a case should be tried or not. I know more than anyone else the merits of that case.”
Palumbo followed up, asking how much influence should be given to the agency chief.
“Is it your position they should have part of a say and be able to weigh in on it, or they should make the decision?”
Warner said as a constitutional officer, he should have had a greater say-so.
“I can tell you this: I weighed in very heavily, and I was ignored,” he said.
Referring to an earlier meeting with representatives of BRIM, Palumbo characterized their view of their job as protecting the state’s money.
“They believe they’re doing that in a proper way now as most insurance companies do,” Palumbo said. “Obviously you disagree with that.”
Warner responded, “I would expect them to say that. It’s their job. It’s their livelihood. It’s their bureaucracy. I think the Senate and the House have an obligation to look into that.”
He concluded, “In my perspective, it’s absurd.”
Officials from BRIM did appear just prior to that before the Senate Banking and Insurance Committee.
Palumbo asked questions of Mary Jane Pickens, executive director of BRIM.
“Your goal when you get a claim in is to handle it in the best possible financial result for the state, right?” Palumbo asked Pickens.
“Yeah, the best interest of the state and the best interest of our insured,” Pickens responded.
Palumbo continued, “I mean, not the best interest of the agency or the officeholder to make them look good or bad. I mean, your focus is on the state and protecting the state’s finances.”
“It is,” Pickens responded. “You know, and given the law and the facts surrounding the case. I mean, they’re all different. But yeah our board has made it very clear that’s what they expect us to do.”
Palumbo then made reference to Warner’s desire to have the claims handled differently.
“What would be your opinion?” asked Palumbo, who is a lawyer for the Bowles, Rice firm. “Because for me, I’ll just say, I think it’s a terrible idea.”
“I think we would agree,” Pickens said. “You know, we have a board. There is oversight. The board is appointed largely by the governor. I mean, there’s levels of oversight.
“You want a program that is not political. I think you want a program to be run professionally and not be driven by decisions that kind of come and go or that are unique to one particular insured.”