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Settling Lawsuits May Be Bad Policy

2 min read

West Virginia Secretary of State Mac Warner is right to be upset about other officials depriving him of his day in court. Taxpayers should be concerned, too, about what taking the easy way out of lawsuits is costing us.

When Warner took office, he replaced 16 employees in his department. Twelve of them filed lawsuits against him. Warner said he was prepared to justify each and every personnel action.

Last week, it was revealed that the state's insurance carrier had settled four of the lawsuits, paying ex-employees $965,000. There will be no trials in their cases.

Warner called the settlements "shockingly absurd" and wrote to the state Board of Risk and Insurance Management demanding that he be permitted to discuss any additional settlement proposals. Eight of the lawsuits remain scheduled for trial.

Legislators should alter the current system, under which officeholders have little or no say in whether lawsuits against them are settled instead of taken to trial, Warner believes.

Such settlements cost taxpayers millions of dollars, he pointed out.

Indeed they do. Insurance companies sometimes calculate that settling would be cheaper than going to trial -- even if the defendant officeholder has a good case.

But, as Warner noted, that can set a bad precedent. It can encourage plaintiffs and their attorneys to file lawsuits with little or no merit, in the hope insurance companies will settle rather than pay the costs of trials.

Warner is right. Legislators should take another look at the system. It may be costing taxpayers money needlessly -- and it may be depriving state officials who are in the right of their opportunities to prove that in court.

Starting at /week.