Wednesday, April 18, 2007

Dixie County's Liability Insurer Drops Coverage -- County Faces Huge Potential Losses

John Pieret pointed out an angle on the 10C case in Dixie County that I had not yet thought of:

...it is unlikely that any insurance carrier the county might have would consent to Liberty Counsel representing its interests, so that probably means that the county is uninsured or, as was the case in the Dover Intelligent Design case, the county commissioners are violating the standard policy provisions, allowing the insurer to disclaim. [bold emphasis mine]
After doing a little digging, I found out that he was dead on target:
The Board voted unanimously to let Liberty Counsel represent the county in the lawsuit filed by the ACL. The ACLU filed the lawsuit in an attempt to have the Ten Commandments monument moved from the courthouse steps. County Attorney Leenette McMillan informed the Board that by choosing Liberty Counsel to represent the county in the lawsuit, the county will not be covered by its existing liability company. The Board chose Liberty Counsel because of the firm’s expertise in this type of lawsuit. Liberty Counsel has agreed to represent the county free of charge. (source) [bold emphasis mine]
Wow. I am going to make some more phone calls and find out more about the ramifications of losing your liability coverage. I want to know exactly how much risk they're taking here, and their citizens deserve to be informed. I know the ACLU's policy is not to pursue much in damages (if any -- in this case, it is "not to exceed $20"), but I wonder if that "kid gloves" strategy ought to be amended in the face of stubborn and stupid decisions like Dixie County has made...

My detailed analysis of the legal issues can be found here, and everything I've written on this situation, including extensive local media coverage, here.
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