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Another national ranking and yet another smack-down for Louisiana but this time there are underlying political reasons for the state’s poor showing.

A report by 24/7 Wall Street shows that Louisiana is the ninth-worst state in which to be unemployed despite the state’s 10th lowest unemployment rate of 4.5 percent. (Mississippi, as it does in virtually every such ranking, is the worst in the nation, lending credence to Louisiana’s unofficial state motto: At least we’re not Mississippi.)

http://247wallst.com/special-report/2014/06/24/the-best-and-worst-states-to-be-unemployed/

Of the worst 10 states in which to receive unemployment benefits, seven are in the South. Besides Louisiana and Mississippi, the worst 10 include Tennessee (10th worst), Georgia (8th), Virginia (7th), Arizona (6th), Illinois (5th), Kentucky (4th), Michigan (3rd), and Alabama (2nd worst).

And for those who believe those drawing unemployment are just lazy deadbeats, as the American Legislative Exchange Council (ALEC) and a lot of politicians would have us all believe, consider this: only 24.3 percent of weekly wages are covered by Louisiana unemployment benefits, second lowest percentage in the nation.

And just so you know, when Gov. Bobby Jindal traipses all over the country speaking at select venues and appearing on carefully chosen television talk news shows to boast about Louisiana’s soaring economic growth, it’s interesting to note that the state’s one-year job growth of .7 percent, 11th lowest in the nation, tends to cast doubt on the governor’s self-serving claims of prosperity, happiness and security among Louisiana’s workers.

Another key point Jindal conveniently overlooks, omits, or simply conceals from the public is the fact that only 20 percent of the state’s unemployed are even receiving benefits, tied for seventh-lowest in the U.S. To help Jindal overcome his apparent weakness at math, that leaves 80 percent of the state’s unemployed with no benefits.

And if you believe the state’s treatment of the unemployed is shabby, let’s consider how that policy dovetails with the consideration given injured workers who dare apply for worker’s compensation. The two programs are heavily stacked against workers who are laid off or hurt.

And why is that? Well, during the 2013 legislative session, House Bill 303 by Rep. Herbert Dixon (D-Alexandria, more appropriately, DINO-Alexandria) was approved 94-11 in the House and 38-0 in the Senate and subsequently signed into law by Jindal as Act 39.

That bill made it considerably more difficult for applicants to appeal denials of their applications for unemployment benefits by squeezing the time frame in favor of employers.

The previous law required that notices be sent by certified mail and the applicant was given 15 days from receipt of the notice to file an appeal.

HB 303 changed the notification method by deleting the certified mail requirement and started the 15-day clock on the day the notice was mailed or electronically transmitted. The bill further shortened the time for the appeal tribunal to mail a “notice to appear for a hearing” from 10 days to seven.

This year, HB 819 (which thankfully, failed to make it out of committee) was a particularly ominous bill from the standpoint of workers who are laid off.

That bill, by Rep. Joseph Lopinto (R-Metairie), would have presumed that if an employer “discharges and employee and then replaces the employee quickly, the employee was discharged with cause,” and thus ineligible for unemployment benefits.

That’s pretty heavy-handed even for the most ardent opponent of employee rights.

And while there are the periodic legislative attempts to weaken unions, dilute workers compensation laws and curtail unemployment benefits, most of the more subtle, under-the-radar efforts come in through the back door, seldom detected by those affected until it’s too late.

Take, for example, the March 5, 2013, order of Louisiana Office of Workers’ Compensation (OWC) director and chief judge (at the request of OWC’s bill review company Qmedtrix of Portland, Oregon) which transferred 45 pending cases then split between two workers’ compensation judges in the Lake Charles District to Judge Shelly Dick.

Judge Dick was appointed ad hoc workers’ compensation judge in 2008 by then OWC Director Chris Broadwater (now a state representative and Vice Chairman of the House Labor and Industrial Relations Committee) and whose name will crop up again and again.

On the face of the order, the order carried no special significance—until one began to peel back the layers that revealed:

  • Judge Dick had already been nominated and confirmed by the U.S. Senate Judiciary Committee for a federal judgeship. In other words, the order would transfer the 45 cases to a judge that OWC knew full well would be leaving in short order.
  • OWC made it clear at the time that an ad hoc judge would hear the cases whenever Judge Dick moved to the federal bench and the only person mentioned at the time was attorney Amanda Clark, the former law partner of then-OWC Director Chris Broadwater.
  • The OWC order also transferred cases to the law firm of (ahem) Forrester & Dick (yes, the firm in which Shelly Dick was a partner), even though the law firm represented clients who were defendants in some of the 45 cases.
  • Neither of the two judges to whom the 45 cases were originally assigned issued or signed the transfer order.
  • Broadwater resigned as OWC director in 2010 and returned to the law firm of Forrester & Dick.
  • In 2011, Broadwater was elected to the Louisiana House and in 2012, resigned from Forrester & Dick whereupon he was retained by Qmedtrix to assist in the defense of its Louisiana cases involving Qmedtrix’s re-pricing of workers’ compensation outpatient bills based on “usual and customary” charge reductions.
  • By November of 2012, rumors began to surface that Qmedtrix and Broadwater were meeting with Broadwater’s successor, OWC Director Wes Hataway in an effort to get the cases stayed or funneled to a more favorable judge. Broadwater would admit (on his state ethics disclosure forms, no less) that the meetings did, in fact, occur: “Met with Director of OWC discussing process of resolving disputes over medical billing.” Altogether, Broadwater admitted to meeting with Hataway “three or four times” in person and speaking with him “10 or 15 times” on the phone—all while billing Qmedtrix $275 per hour.

Such meetings are known in the legal realm as “ex parte” meetings, a Latin term meaning done by, or on the application of one party alone.

And though Clark ultimately was never appointed to ad hoc judge, while she was still under consideration for that post, she attended a trial in Lafayette in January of 2013 presided over by Dick, her law partner. That case involved unpaid medical bills for physician-dispensed prescriptions and the defendant was LUBA Workers’ Comp.

In other words, LUBA’s case was tried by a judge whose law firm had been hired by LUBA but neither the court, Clark, nor LUBA disclosed Forrester& Dick’s representation at the trial.

“The Amanda Clark-LUBA connection is troubling,” said attorneys for plaintiff Christus Health Southwest Louisiana, because Christus Health’s legal counsel currently had pending more than 50 provider claims involving LUBA, and “LUBA, like Mr. Broadwater (who also represented LUBA) apparently believes it is entitled to engage in improper ex parte communications with the OWC director in relation to pending cases.”

Broadwater testified by deposition that Hataway, on Nov. 21, 2012, even sought his opinion as to whether the Hataway has the authority to stay the “usual and customary” cases and Broadwater advised him that he could. That meeting took place in Hataway’s office, according to court documents. Also present besides Broadwater, who attended on behalf of Qmedtrix, was Doug Cochran of the Stone Pigman law firm (Qmedtrix’s attorney), and representatives of Qmedtrix who attended by telephone.

Following that meeting, Cochran wrote Hataway a “Dear Wes” letter on Nov. 28 in which he outlined “the most efficient manner to proceed,” which included an order staying all claims procedures and having all the cases heard by a single judge. “Once these matters are stayed, we look forward to mediation,” Cochran said.

Mediation after claimants had all their cases stayed with no ability to more their claims forward would be of decided advantage to Qmedtrix.

Cochran’s letter continued: “Once the cases (past and future) have all be docketed with a single judge, the next step is to provide him/her the proper tools to resolve the cases at the mean of usual and customary.”

This meant that not only would the cases be transferred to a single judge as requested, but Qmedtrix also was suggesting that Hataway actually instruct the OWC hand-picked judge what evidence to consider and how to rule.

“We look forward to the stay being issued at the earliest opportunity so that the dockets of the OWC courts can be cleared of the UC (usual and customary) issue. Matters such as these UC cases are more adequately handled by experts rather than after contrary court opinions,” the Cochran letter said.

“Qmedtrix takes the position that medical provider claimants should have their underpayment claims decided by Wes Hataway and Qmedtrix rather than the court system,” Christus Health said.

Broadwater, in his deposition admitted that he was aware that his client Qmedtrix was involved in the usual and customary litigation before OWC at the time the ex parte discussions took place.

“A search of the entire Louisiana Workers’ Compensation Act and the OWC Hearing Officer Rules reveals that there is no legal authority for the OWC director to either stay or transfer pending workers’ compensation claims,” Christus claims, adding that state statute, “which is the only statute addressing the transfer of OWC cases, makes it clear that the workers’ compensation judge (not the director) may transfer cases with the consent of the parties.”

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We at LouisianaVoice attempt to illustrate how events and people are interconnected by money and power. You won’t find that in any other news reports on Louisiana politics. Most issues in state politics can be traced directly to campaign contributions or the influence that money buys—and that’s what we try to bring to you through our research and reporting.

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Checks should be made payable to Capital News Service/LouisianaVoice.

There’s a new fight brewing between Gov. Bobby Jindal and Chas Roemer over the simmering Common Core standoff between the governor’s office and the Board of Elementary and Secondary Education (BESE).

And if it were done right, it would be a memorable encounter. Sadly, it shapes up to be just another faceoff between lawyers.

BESE will consider retaining a special legal counsel in its efforts move forward with the Common Core test plans, according to BESE’s revised agenda released on Friday.

http://theadvocate.com/home/9577083-125/possible-legal-action-on-revised

Such a legal battle would pit BESE against the governor’s office after Jindal issued an executive order to discontinue Common Core tests being prepared by the Partnership for the Assessment of Readiness for College and Careers (PARCC).

Jindal, in his best imitation of John Kerry, was for Common Core before he was against it and now sniffs he will never let that big bully, aka Washington, D.C., dictate to Louisiana which, by golly, will devise and administer its own tests. That prompted former State Superintendent of Education Paul Pastorek (before he was shoved out the door by Jindal who wanted current Superintendent John White who he now opposes on the Common Core issue) to rebuke his former boss when he proclaimed that the feds have nothing to do with setting Common Core standards. That point remains debatable.

Got that? Didn’t think so. Neither do we.

Jindal ordered BESE (an independently elected, autonomous board, by the way) to initiate a competitive bid process for a new assessment process so the state can come up with its own academic standards. He also suspended a contract between the Louisiana Department of Education (DOE) and PARCC.

In a real test of wills, Jindal’s office also has demanded that DOE produce volumes of test-related documents by Monday.

We at LouisianaVoice can offer our own experience with that seemingly innocuous request for public records.

On Monday, June 23, I submitted a request for “all itemized invoices and records of payments” to a DOE vendor. What I got in return was simply a list of payments. No invoices at all, let alone itemized invoices.

My patience already stretched to the breaking point with recurring delays by DOE on other public records requests, I snapped. I sent White a second demand which said, in part:

“The information you provided me is insufficient. I specifically requested itemized invoices from (vendor name). The vendor history you provided me does not list what the charges were for nor the dates incurred.

“I want every specific invoice submitted with itemized listing of what each and every expenditure was for, i.e. supplies, utilities, rent, salaries, travel, etc.

“John White, I don’t know what kind of game you are playing but I know you possess (or at least should possess) sufficient intelligence to know what I asked for and that what your office provided does not come close to a sufficient response. What do you think the term “itemized invoice” below (highlighted) implies? What part of “itemized invoice” don’t you understand?

“If you want to play games, we will let a judge be the referee. I am weary of your stalling, delaying, and playing ignorant. You have until noon Friday or you will be served with a lawsuit Monday. Itemized invoices, John,….ITEMIZED.“

I received a call around noon Friday informing me the requested documents were ready for our inspection.

The revised agenda released by BESE includes an executive session but Roemer says that may not be necessary. “I anticipate there may be given potential legal questions and that is why the executive session must be on the agenda,” he said.

It could be Jimmy Faircloth vs. ATBA (attorney to be announced) if it comes down to a fight between proxies—as it probably would.

But wouldn’t it be better if we just put Jindal and Roemer in a ring together and let them duke it out?

That would be an epic battle worthy of Sheldon of The Big Bang Theory vs. Niles of Frasier.

Forget about the Rumble in the Jungle (Muhammad Ali vs. George Foreman) or the Thrilla in Manila (Ali vs. Joe Frazier). Those were just preliminary bouts for what would truly be a battle of the ages.

Jindal vs. Roemer. Sheldon vs. Niles. Collision in the Classroom. Clown Clash. Common Core Conflagration. Capital City Smack Down. Brouhaha in Baton Rouge. Call it what you will, that’s something Louisianians would pay top dollar to watch.

No matter what you would call it, if it could be arranged, I would take whatever steps necessary to obtain the legal rights to telecast the bout over statewide closed circuit television or Pay Per View.

We’ll hype it as Brawl on the Bayou.

In more than three years of reporting stories state politicians would rather not see reported, we are currently conducting our very first fundraising campaign to defray expenses and hopefully, pay for an additional reporter or two. If you like stories like the one below, don’t forget to click on the “Donate” button below, at right.

For those experiencing problems with the donate button, our address is:

107 North College West

Denham Springs, Louisiana 70726

Checks should be made payable to Capital News Service/LouisianaVoice.

Thanks to each of you for your continued support.

Gov. Bobby Jindal, with the signing of House Bill 799, has continued his assault on the Southeast Louisiana Flood Protection Authority-East (SLFPA-E), underscoring the importance and power of special interest money over the welfare of the state.

HB 799, authored by Rep. Stuart J. Bishop (R-Lafayette), bars the Louisiana attorney general from hiring plaintiff attorneys on a contingency-fee basis to pursue litigation against corporations like Chinese dry wall manufacturers responsible for millions of dollars in damages to new homes in Louisiana, pharmaceutical companies accused of price fraud at the wholesale level and of selling pharmaceutical products not approved by the federal government, companies found to be improperly handling underground storage tanks, or tobacco companies whose seven top executives (to evermore be known as the “seven dwarves”) lied under oath to Congress in saying nicotine was not addictive.

Bishop cited fees of $51.4 million paid state-contracted attorneys in a case against the pharmaceutical industry that resulted in a $285 million verdict. That computes to a fee of about 18 percent as compared to the 30 percent norm usually charged by attorneys hired on contingency.

A $235.7 million settlement of another pharmaceutical case resulted in attorney fees of $46.6 million, or 19.7 percent. The Coalition for Common Sense, a group describing itself as committed to a fair legal climate said another portion of that settlement went to repay two-thirds of the state’s Medicaid expenses. The coalition said that bumped the legal fees up to 34.2 percent, but without further clarification, it seems difficult to equate Medicaid fees to legal fees. That would seem to come under the purview of Jindal’s continued mismanagement of the state’s Medicaid program.

In yet another case, attorneys, including Attorney General Buddy Caldwell’s campaign treasurer and other contributors, received $4 million in fees, or 9.4 percent, of a $42.5 million case.

Granted, it doesn’t look good for Caldwell’s campaign treasurer to receive a contract but the obvious question is how is that any different than Jindal’s former executive counsel Jimmy Faircloth getting contracts to represent the state in one losing case after another—at fees which now exceed $1 million?

Jindal’s penchant for protecting the oil companies, who have contributed more than $1 million to his various campaigns, is by now well-known. His largesse has even extended to BP which may have negated pending claims against the company for the 2010 Deepwater Horizon spill that killed 11 men and pumped 4.9 million barrels of oil into the Gulf.

The fact that the governor’s brother works for BP, of course, had nothing to do with Jindal’s decision to sign Senate Bill 469 by Sen. Bret Allain (R-Franklin) which killed the SLFPA-E lawsuit against 97 oil, gas and pipeline companies for damages inflicted to Louisiana’s coastline and marshlands. SB 469 also made the prohibition against such lawsuits retroactive to ensure that the SLPFA-E effort was nipped in the bud.

(Allain, by the way, was the one who slipped that $2 million appropriation into the 2013 Capital Outlay Bill to renovate the third floor of an old elementary school in Franklin for conversion to a museum to house the archives of former Gov. Mike Foster who will now become the only governor in Louisiana history to have his archives housed in something other than a university library.)

Jindal, in signing SB 469 into law, said the law would stop “unnecessary frivolous lawsuits.”

Allain, also invoking the “frivolous lawsuit” catch phrase, also said if allowed to stand, it would “hurt jobs.”

Sen. Robert Adley (R-Benton), who lobbied for the bill and who has been the beneficiary of more than $600,000 in oil and gas campaign contributions, said, “This bill keeps a rogue agency from misrepresenting this state and trying to raise money through illegal actions.”

Perhaps Sen. Adley should take a long inward look at misrepresenting the state and raising campaign money through legal but questionable means.

Louisiana Oil and Gas Association President Don Briggs called Jindal’s signing of the bill “a huge victory for the oil and gas industry.”

You think?

What all three men seem to have overlooked is that when companies that traditionally reap billions in quarterly profits each year walk away from their responsibilities to repair damage they inflict on the environment in their non-stop quest for even more profits, then sometimes those “greedy lawyers” need to step up and hold these companies accountable.

And of course there was SB 667 which neutered the so-called “legacy lawsuits” over environmental damage from oil and gas companies’ tendency to walk away from well sites on private property without bothering to restore the property to its original condition.

And let’s never forget that a priority of the American Legislative Exchange Council (ALEC) is to oppose environmental protections, be they EPA’s regulation of greenhouse gases or legacy lawsuits. At the top of ALEC’s membership list in leading the fight against environmental laws, and the rights to hold corporations legally accountable are such familiar corporations as Exxon/Mobil, BP, Chevron, Shell and, of course, Koch Industries.

At least two of those legacy lawsuits succeeded before SB 667 was signed into law by Jindal.

  • The first, a $76 million award, was litigated by Lake Charles attorney J. Michael Veron on behalf of family members whose property was heavily polluted—and subsequently abandoned—by Shell Oil. Veron authored a book entitled Shell Game about the litigation. In the book, he describes in detail how he was called into then-Gov. Foster’s office and lectured to like a misbehaving schoolboy. Despite the heavy pressure from Foster, Veron persisted and eventually won.

Foster, of course, is the one responsible for our present predicament: he discovered Jindal—“the smartest man I ever met,” he said—and appointed him head of the Department of Health and Hospitals at the tender age of 24.

  • The second case was that of Bill Doré, retired chairman of Global Industries of Sulphur. Doré made a fortune from the Southwest Louisiana oil patch but when he purchased Cameron Meadows in Cameron Parish with the intent of constructing a hunting lodge, he discovered the land had been polluted by oil companies to such an extent that alligator, fish and other wildlife populations had dwindled significantly and that wherever he stepped on the property, oil and brine would ooze to the surface. He sued Exxon/Mobil whose executives promptly summoned him to Houston for a come to Jesus meeting at which they informed him that if he continued on his quixotic quest, he would lose valuable Exxon/Mobil business. He more or less told the Exxon/Mobil suits what they could do with their business, which amounted to some $37 million over the years. He reminded them that because Exxon, the richest company on earth, insisted on such rigid contract firms by forcing vendors to accept smaller margins as the cost of doing volume business with them, Global had actually lost $7 million on its Exxon/Mobil business. Represented by New Orleans attorney Gladstone Jones, the same attorney representing SLPFA-E, Doré won a $57 million judgment against the giant oil company.

In an interesting side bar to the story, a small Cameron café catered the meals for both sides and the jurors during the protracted Doré trial. Attorneys for both sides agreed to split the cost of having meals for both sides. Following the two-week trial and after each side had paid its share of the costs, Doré’s legal team gave the café’s staff a $1,000 tip. The tip from attorneys for Exxon/Mobil was $20—almost as if the café’s staff was responsible for the adverse verdict.

So now, it comes full circle.

The SLPFA-E board, stacked with Jindal appointees after he replaced rebel John Barry, the leading proponent of the litigation, voted 4-4 last week on a motion to withdraw the suit. While a majority was required for passage, it appears to be academic. Jindal’s signing of SB 469 would seem to ring the death knell for any future legal action.

So now, the state is virtually powerless to seek remediation for damages done to our coastline such as that depicted in this video:

https://www.youtube.com/watch?v=HaW1DomWRk4

Greedy lawyers? Frivolous lawsuits?

So, where does all that special interest money we alluded to in the first paragraph come in?

Well, LouisianaVoice has already provided an itemized list of oil and gas industry contributions to each of the state’s 144 legislators that totals more than $5.2 million and we earlier cited contributions to Jindal in excess of $1 million from the same industry.

But how did the contributions break out on the House and Senate votes on the infamous SB 469?

We’re glad you asked. We’ve done the math for you.

In the senate, the 25 senators who voted in favor of the bill killing the SLPFA-E litigation received $1.99 million from oil and gas interests, or an average of $79,664 each.

The 11 who voted against killing the lawsuit combined to receive $591,000, or $53,769 each—a difference of nearly $26,000 each.

Now let’s stroll across the Capitol Rotunda to the House side where vote-buying is a little less expensive, more economical if you will.

The 59 members who voted in favor of SB 469 combined to rake in $1.885 million, or just a tad under $32,000 each while the 39 nay votes took in $889,281 between them, or an average take of $23,402, a difference of about $9,600 each.

Moreover, during debate on SB 469, the State Capitol was swarming with lobbyists from BP, which stood to benefit mightily from passage of the bill.

So, you see, it’s really pretty evident that money—lots of it—tends to flow freely in the Capitol and its influence is completely out of kilter with the intent of a democratic republic. We no longer have a representative government for the people but a representative government for those who can wave the most money under the noses of our elected officials.

As one legislator who, for obvious reasons, shall remain anonymous as to his name, the area of the state he represents and even the chamber in which he sits, said in a recent email to a constituent:

“When a fella has the oil and gas lobbyists, the LABI lobbyists, and the governor’s office all on the same team and wanting you to be on the same team, well, it was a challenging last few days of the session.  I thought then, and I still hold the belief, that this is a bad bill (now a law since Gov. Jindal has now signed it) and sets a horrible precedent.  Again, this administration has assured another legal challenge to a law it supported and I expect a lawsuit to be filed before long.

“I appreciate your taking time to send me your email.  When I was down there surrounded by many who were interested in me only for the vote of the moment, expressions such as yours remind me of my commitment to the good people of the district I serve and confirms that, in the face of all those present in the Capitol during the session, I was sent there to represent those who can’t be there.”