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The State of Louisiana shelled out almost a half-million dollars over a three-year period to a single law firm to defend two lawsuits against the former director of the Office of Alcohol and Tobacco Control (ATC)—both of which went against the state.

Records obtained from the Division of Administration reveal that both lawsuits, defended by Renee Culotta of the New Orleans law firm of Frilot, LLC, were settled in favor of the plaintiffs. The most recent of the two, filed by one current ATC and two former agents, all African-Americans, was settled for $250,000.

Prior to that, the case of another former agent, Lisa Pike, was also settled but the terms of that settlement were held confidential by the court.

ATC, under the leadership of former director Troy Hebert, was riddled with controversy and in the end, possible criminal wrongdoing, according to no less authority than Hebert himself. Hebert, at one point in the proceedings of yet a third pending CIVIL ACTION against him, filed a MEMORANDUM in Support of his Motion for Protective Order.

In the LAWSUIT filed by Charles Gilmore of Baton Rouge, Daimin McDowell of Bossier Parish, and Larry Hingle of Jefferson Parish, the case that was settled recently for $250,000, Frilot was paid $309,00 in attorney fees–$150,000 more than the final settlement.

Another $186,400 was spent by the State in defense of the Lisa Pike matter.

PAYMENTS TO FRILOT

And while the terms of that settlement are not known, it might seem prudent for the State to consider cutting its losses in all litigation pertaining to Hebert’s stormy tenure as Bobby Jindal’s boy at ATC.

For that matter, how far must a given case proceed for the defendant—in this case, the State—to realize it is defending the indefensible? At what point should the decision to walk away be made before wasting more taxpayer dollars?

Hebert’s deposition, taken in December 2016 in which he refused to answer questions on the grounds that it might leave him exposed to criminal prosecution should have been the signal to the State to throw in the towel and settle. What better justification could there be to settle? Why keep the meter running? That, nonetheless, is precisely what the State elected to do.

Throwing good money after bad has just always seemed like a bad proposition in any endeavor and these cases are no exception.

 

It’s a plaintiff attorney’s and a legislator’s nightmare.

As an illustration of just how bad the state’s fiscal condition really is, one need only examine the 40 court judgments stemming from litigation against the state in 2016 that have yet to be paid.

As former Speaker of the U.S. House Tip O’Neill once said, all politics is local and when a constituent wins or settles a lawsuit against the state, that person’s legislator is usually prompt in filing a bill in the House to appropriate funds for pay the judgment. That’s important to legislators. The state, after all, has denied classified employees pay raises for the better part of a decade but never missed paying a judgment other than the Jean Boudreaux case—until now.

It’s also a good indication of just how dire the state’s fiscal condition really is.

In all judgments of road hazard cases—cases involving auto accidents where the state is found at fault for inadequate signage, poor road maintenance or improper construction—as well as certain other claims like general liability or medical malpractice, funds must be appropriated via a bill submitted by a legislator.

In past years, with the exception of one major judgment, that has not been a problem. Only the $91.8 million class action judgment resulting from the 1983 flood in Tangipahoa Parish was never paid. In that case, lead plaintiff Jean Boudreaux claimed that construction of Interstate 12 impeded the natural flow of the Tangipahoa River, causing unnecessary flooding of homes and businesses north of I-12.

But in 2016, Rep. Steve Pugh of Ponchatoula submitted a bill to appropriate funds to pay the judgment. He did the same in 2017. It still remains unpaid, along with 36 other judgments totaling another $9.5 million for which bills were approved.

That puts the overall total judgments, including the 34-year-old Boudreaux case at more than $101 million.

And that doesn’t count the cost of attorney fees, expert fees, or court reporter fees, amounts practically impossible to calculate without reviewing the complete payment files on a case-by-case basis.

Twenty-four of the cases had two or more plaintiffs who were awarded money.

In 19 cases, awards were for $100,000 or more and three of those were for more than a million dollars—if indeed the money is ever paid.

In the meantime, judicial interest is still running on some of those judgments, which could run the tab even higher.

A list of those who were either awarded or settled cases in excess of $100,000 that remain unpaid and their parishes include:

  • Michael and Mary Aleshire, Calcasieu Parish: $104,380.82;
  • Kayla Schexnayder and Emily Legarde, Assumption Parish: $1,068,004;
  • Debra Stutes, Calcasieu Parish: $850,000;
  • Peter Mueller, Orleans Parish: $245,000;
  • Steve Brengettsy and Elro McQuarter, West Feliciana: $205,000;
  • Jeffrey and Lillie Christopher, Iberville Parish: $175,000;
  • Donald Ragusa and Tina Cristina, East Baton Rouge: $175,000;
  • Stephanie Landry and Tommie Varnado, Orleans Parish: $135,000;
  • Jennie Lynn Badeaux Russ, Lafourche Parish: $1.5 million;
  • Adermon and Gloria Rideaux and Brian Brooks, Calcasieu Parish: $1.375 million;
  • Theresa Melancon and DHH Medicaid Program, Rapides Parish: $750,000;
  • Rebecca, Kevin and Cheryl Cole and Travelers Insurance, East Baton Rouge: $400,000;
  • Samuel and Susan Weaver, Lafourche Parish: $240,000;
  • Henry Clark, Denise Ramsey and Lady of Lourdes Medical Center, Lafayette Parish: $326,000;
  • Anya and Abigail Falcon and Landon and Nikki Hanchett, Iberville Parish, $946,732.53;
  • Adam Moore and James Herrington, East Carroll Parish: $150,000;
  • Traci Newsom, Gerald Blow, DHH Medicaid and Ameril-Health Caritas, Tangipahoa Parish: $150,000;
  • Michael Villavaso, Orleans Parish: $443,352.51.

Lawsuits against all state agencies are handled by the Office of Risk Management (ORM), which Bobby Jindal privatized in 2011 in order to save the state money.

The privatization didn’t realize the savings Jindal had anticipated but now, at least, it looks as though the Division of Administration has found another way to save money on litigation costs:

Don’t pay the judgments.

LouisianaVoice has received confirmation that the Legislative Auditor’s office has served subpoenas on the New Orleans Roosevelt Hotel in connection with its ongoing investigation of Louisiana State Police (LSP) management practices under former Superintendent Mike Edmonson.

Confirmation was received first from one of the principals of the historic, 116-year-old hotel and subsequently from Legislative Auditor Daryl Purpera, who declined to provide any specifics as to what investigators were looking for.

But it’s not difficult to figure out.

Considering an Oct. 11 LouisianaVoice STORY about complimentary hotel rooms given Edmonson and other LSP command personnel and State Fire Marshal personnel by two other New Orleans hotels, a good bet would be that auditors are looking at one of two possibilities:

  • Were state police given complimentary rooms at the Roosevelt Hotel in violation of state ethics laws that prohibit state employees from accepting anything of value as a gift, or
  • In cases where the state may have paid for the rooms during events like Mardi Gras, did anyone other than LSP personnel stay in the rooms?

Questions are pretty much limited to those two options.

Of course, “anyone” could simply refer to wives or other family members, which would be a violation in itself, or it could be other “guests.”

Rumors have circulated for months that officials of both LSP and the State Fire Marshal’s office loved to party hearty in New Orleans and female companionship and booze often were parts of the equation.

One source, when LouisianaVoice only asked if the wives and girlfriends of fire marshal personnel were also allowed to stay at the hotels free of charge, volunteered, “Oh, yes. Wives, girlfriends and other female guests.” (Emphasis his.)

Because Purpera could not go into detail as to what his investigators were looking for, he naturally also declined to speculate as to who, if anyone, else may have stayed in rooms assigned to LSP personnel.

Nor would he offer any insight as to whether he was trying to make a determination as to identities of hotel guests or attempting to learn if LSP personnel simply accepted free rooms from the hotel.

On one hand, state employees may have been accepting free rooms, a clear ethics violation. On the other, the state may have paid for rooms for state employees who were on temporary duty in New Orleans but who then allowed others to share the rooms—on the state dime.

From our vantage point, there doesn’t appear to be much distinction between the two insofar as flouting the ethics rules for public employees is concerned.

Such was the attitude that was allowed to permeate LSP during Edmonson’s nine years as Louisiana’s top cop.

An interesting scenario is playing out up in Bossier Parish that could impact the landscape in the 2019 state elections and the 2020 congressional elections with key players being U.S. Rep. Mike Johnson and Bossier Parish Superintendent of Schools Scott Smith.

Back in 2015, there was an uproar over students’ plans to install “prayer boxes” at Airline High School in Bossier City. While the controversy died down rather quickly, it provided a window for then-State Rep. to lead the fight against the ALCU right on into Congress.

Today, the dispute is between the Bossier Parish School Board and the Americans United for Separation of Church and State over last May’s Benton High School graduation ceremonies that opened and ended with prayers and Smith is right in the middle of the controversy.

http://www.shreveporttimes.com/story/news/education/2017/09/25/bossier-schools-respond-complaint-graduation-prayers/699983001/

Cynics are asking, “Why Bossier?” and “Why now?”

The scuttlebutt, when plotted out, makes good political sense and a couple of comments from Smith’s wife, former State Rep. Jane Smith only serve to validate the rumors.

But first some background:

During Johnson’s time in the State Legislature, he authored House Bill 707, known as the MARRIAGE and CONSCIENCE ACT, which would have prohibited the state from denying any resident, nonprofit or business a license, benefits or tax deductions if the business took actions “in accordance with a religious belief or moral conviction” about marriage.

Critics said the bill had nothing to do with religion and everything to do with discrimination against same-sex marriage and the bill died in committee only to have Bobby Jindal promptly issue an executive order to enforce the intent of Johnson’s bill—a similar one of which had already been struck down in Kentucky by the courts.

JANE SMITH, a former Bossier Parish School Superintendent in her own right who was in her third term and term-limited by the Louisiana Constitution, was appointed by Jindal in 2012 as deputy secretary of the Louisiana Department of Revenue even though, as she admitted to a friend, she knew “nothing about revenue.”

So, what to make of all this?

Well, word is that Johnson has his eyes on bigger and better things than being a lonely voice among 435 members of the U.S. House.

Governor?

Nope. That plum belongs to U.S. Sen. John Kennedy, presently a not-so-lonely down-home voice among 100. It’s the worst-kept secret in Louisiana that Kennedy wants desperately to challenge Gov. John Bel Edwards in 2019.

The plan, according to some observers is for Johnson to run either for lieutenant governor or attorney general. Barring entry by any other candidates in those two races, we would be left with the less-than-desirable choice between Johnson and Billy Nungesser or Johnson and Jeff Landry.

Should that scenario play itself out and should Johnson be elected to one of those statewide posts, that would leave the door wide open for Scott Smith, who those same observers in northwest Louisiana, is already being groomed to run for Johnson’s vacated seat in a special election in early 2020. Johnson is tight with Landry but if Landry opts for a run at higher office, Johnson may feel the job is his by divine right. At any rate, speculation is the deal has already been cut.

Far-fetched? Perhaps not so much. The information making its way down to LouisianaVoice is that Jane Smith is already telling close friends that she has accepted a lobbying job in Washington.

All we can say for certain in all of this is anytime a politician waves a Bible while wrapped in the flag, little good can come from it. Sanctimony is not a trait becoming to anyone.

There’s an old saying from back in the days of my long-lost youth that sometimes you have to hit a mule in the head with a two-by-four to get his attention,

And before I start getting bombarded by animal rights activists, I’m not advocating hitting mules or any other animal with anything.

And I’m not calling the good folks at WBRZ-TV in Baton Rouge mules. But a $2.5 million preliminary default judgment levied against the station and its investigative reporter after the station failed to answer a defamation LAWSUIT against it and reporter Chris Nakamoto was the club that got the station’s attorneys’ attention.

The two-page JUDGMENT, signed in chambers by 21st Judicial District Court Judge Doug Hughes of Denham Springs, isn’t likely to stand for a number or reasons put forth by station attorney Stephen Babcock of Baton Rouge.

But the main point to be taken from this litigation is that it may well be the first volley fired across the bow of Baton Rouge media as part of a growing trend toward the filing of the so-called SLAPP lawsuits.

SLAPP is the acronym for Strategic Litigation Against Public Participation and that’s precisely what it means: lawsuits filed not to win a judgment, but to discourage legitimate questions about official misconduct lest citizens asking the questions—or in this instance, the reporter and his news medium—be forced to shell out tens of thousands of dollars defending themselves.

In this case, WBRZ, as opposed to an ordinary citizen like Welsh City Alderman JACOB COLBY PERRY, has legal liability insurance and can well afford to defend itself. Still, such lawsuits call a station’s and reporter’s integrity and credibility into question and can conceivably injure the reporter’s career opportunities.

An editor in my professional past once told me, “If you haven’t been sued, you aren’t doing your job.” Well, that’s a form of validation I can live without. It’s not unlike being pecked to death by a duck.

I’ll leave it to WBRZ, Nakamoto and their legal team to explain why they never bothered to answer the lawsuit filed by Livingston attorney Wyman Bankston on behalf of State Police Lt. Robert Burns of Livingston Parish—if they care to put forth an explanation. But I will say from my layman’s viewpoint, it’s unwise to ignore litigation. People are trying to get into your pocket and it’s prudent that you defend yourself.

In this case, Nakamoto had done a perfectly legitimate STORY, which it based in its entirety on public records obtained from LSP, on the 64-hour suspension imposed on Burns by Louisiana State Police (LSP) following an Internal Affairs investigation into his conducting 52 illegal computer searches on his ex-wife, her fiance and a former boyfriend over a period of almost three years—from November 2013 to October 2016.

Burns, in his defense—which LSP investigators, by the way, didn’t buy—said that in 46 of those occasions, he was conducting a search of his own license plate and that the “spin-off” searches of his wife were a result of “unintended inquiries generated by an automated system.”

That explanation, however, does not explain the two searches on his former wife’s current fiance and the four searches on her ex-boyfriend. Those searches, besides vehicle and driver’s license records, also included computerized criminal histories on the two men. You can’t explain that away by saying you were doing a search on your own license number. And the obvious question: why was it necessary to conduct 46 searches of his own license number anyway?

Nor does it explain why he subsequently disseminated some of the information he had found (according to WBRZ’s belated response) or why he texted his ex-wife to request that she not report his actions because he “could get fired for doing so.”

Why could he have been fired? Because the searches were “for non-law enforcement purposes, in violation of (LSP) department policy and federal law,” according to a letter from LSP notifying him of an impending suspension.

When neither WBRZ, Nakamoto, nor their legal counsel filed an answer to the lawsuit and when they failed to appear in court on Sept. 28, and without the plaintiff’s submitting any evidence of his claims that Nakamoto had not read the entire LSP report as Burns claimed in his petition, Judge Hughes—in chambers—ruled that the station and Nakamoto were at fault and awarded $1.5 million to Burns and $1 million to his wife, Hilary Burns.

That got WBRZ’s attorney’s rear in gear. On Oct. 12, Babcock filed a 19-page (10 pages longer than Burn’s original petition) MEMORANDUM in support of a motion for a new trial.

In that motion, the station’s attorney argued that a default judgment can be handed down only if the plaintiff presents “competent evidence that convinces the court that it is probable that he would prevail on a trial on the merits” and that he “must prove each element of his claim as fully as if each of the allegations of the petition had been specifically denied by the defendant.”

“Plaintiff is required to adhere to the rules of evidence despite there being no opponent to urge objections,” Babcock wrote in his motion, and that the “trial judge should be vigilant to assure that the judgment rests on admissible evidence.”

Babcock cited a decision by the U.S. Fifth Circuit Court of Appeals in which the court said:

  • Judges, acting with the benefit of hindsight, must resist the temptation to edit journalists aggressively. Reporters must have some freedom to respond to journalistic exigencies without fear that even a slight, and understandable, mistake will subject them to liability. Exuberant judicial blue-penciling after-the-fact would blunt the quills of even the most honorable journalists.

On Monday, Judge Hughes signed a one-page ORDER setting 9 a.m. Monday, Dec. 11, as the time and date that Burns must show cause why a new trial should not be granted.

Burns would probably be wise not to buy that beachfront property in Gulf Shores just yet.

And WBRZ, you just got scooped on your own story.