Saturday, July 31, 2010

IN THE MATTER OF KAREN GOLINSKI, ET UX, AN UNFOLDING SAGA OF CIVIL RIGHTS, SAME SEX MARRIAGE, & FEDERAL EMPLOYEE BENEFITS.

A staff attorney for the Ninth Circuit wants health insurance for her wife

Once upon a time I was employed in the land title business. That is the industry which pays particular detail to the history of land transactions. Examining title to real property involves researching deeds, mortgages, deeds of trust, judgments, lawsuits, tax liens, mechanic liens, maps, plats, and surveys.

Keeping track of who is who requires a system of classification. How did the deed grant the property to the Buyer. That is another way of saying what type of legal relationship is being recognized. There are tenants in common with or without the right of survivorship. There are joint tenants with the right of survivorship, which is the way many married persons take title. Some jurisdictions recognize a tenancy called the entireties, an estate reserved exclusively for married couples. Unmarried women taking title were often referred to by the  expression feme sole. Today, especially in tenancies in common, unmarried persons are referred to as a single man, or a single woman. Why not just say a single person?

An expression we seldom see, except in the dusty files from gone by centuries, is et ux, the abbreviation of the Latin term et uxor, which means "and wife." If you happen across a deed using the term feme sole then you may run across deeds to a certain man et ux. Women in America were treated as personal property when they married. The woman's name on the deed was superfluous as all the legal right and interest to the title ran to the husband. Essentially, women lost their rights when they wed.  The legal doctrine by which husbands subsumed the legal rights of their wives was called coverture.

Since et ux is so seldom used to reference wife in contemporary parlance my eye was immediately drawn to In the Matter of Karen Golinski, et ux, a case being reported on the home page of the Ninth Circuit Court of Appeals.

Federal employee Karen Golinski has a wife. Ms. Golinski has been denied a benefit of federal employment, health insurance for her wife, because she is married to a woman. The Chief Judge of the Ninth Circuit, Alex Kozinski, is handling the case. Ms. Golinski is a staff attorney working for the Ninth Circuit Court of Appeals.


Chief Judge Alex Kozinski of the Ninth Circuit

Judge Kozinski has already ruled that denial of the health insurance benefits violates the Ninth Circuit Court of Appeals guarantee of equal employment opportunity. That order said:
The availability of health insurance for oneself and one’s family is a valuable benefit of employment, and denial of such a benefit on account of sex and sexual orientation violates the terms of the EEO plan that covers Golinski." See, Amended Order, November 19, 2009.

The Director of the Administrative Office of the United States Courts denied Ms. Golinski claim because he considered the Defense of Marriage Act (DOMA) 1 U.S.C. § 7 prohibits identifying a spouse as a person of the same gender. Since Ms. Golinski's wife was not her spouse under federal law, she was not entitled to add her wife under the definition of family required under 5 U.S.C. § 8903(1), which is part of the Federal Employee Health Benefits Act (FEHBA).

Judge Kozinski found the Director's reading of the statutes was not the only plausible reading of FEHBA. Kozinski relied upon a broader construction of the FEHBA which permits the Office of Personnel Management (OPM) to contract for coverage exceeding the minimum statutory requirements. This allows OPM to contract for family coverage which meets the definition of family under state law, but would not meet the definition imposed by DOMA. Kozinski says:

Adopting the broader construction of the statute not only harmonizes the statutory scheme with our EEO plan, it avoids difficult constitutional issues. If I were to interpret the FEHBA as excluding same-sex spouses, I would first have to decide whether such an exclusion furthers a legitimate governmental end. Because mere moral disapproval of homosexual conduct isn’t such an end, the answer to this question is at least doubtful.
Kozinski supports his decision by reliance on Romer v. Evans, 241 U.S. 620 (1996). In that case the Supreme Court said that an amendment to the Colorado constitution prohibiting civil rights protections for gays and lesbians contravened the United States Constitution.

Describing the type of inquiry required to sift through the facts and weigh the circumstances to determine constitutionality of the involved statutes, Kozinski relied on the case of Reitman v. Mulkey, 387 U.S. 369 (1967).  In that case a racially neutral housing law in California was struck down because on the basis of the context and circumstances surrounding the statute's enactment it had the design and intent of weakening the state's anti-discrimination laws.

Note to Kris Kobach, what say you to the context and circumstances surrounding enactment of SB 1070?

Back to Golinski. Judge Kozinski stares into the process of ruling DOMA unconstitutional and does what all good jurists do. Judge Kozinski avoided the constitutional question and harmonized the Defense of Marriage Act (DOMA), 1 U.S.C. § 7; the statutes creating the benefit program at issue, the Federal Employees Health Benefits Program (FEHBP), 5 U.S.C. §§ 8901 et seq.; and the Ninth Circuit Court of Appeals' commitment to equal employment opportunity.

Judge Kozinski's order in this case set forth the following six provisions.


  1. This matter is referred to the Appellate Commissioner for a hearing on Ms. Golinski’s claim under the Back Pay Act. Within 70 days, he shall submit a report and recommendations on the factual issues listed above.

  2. Within 30 days, the Administrative Office of the United States Courts shall re-submit Ms. Golinski’s Health Benefits Election form 2809 to her designated insurer, the Blue Cross and Blue Shield Service Benefit Plan. The AO shall process any future benefit forms without regard to the sex of the listed spouse.

  3. Within 30 days, the Office of Personnel Management shall rescind its guidance or directive to the Blue Cross and Blue Shield Service Benefit Plan and any other plan that Ms. Golinski’s wife is not eligible to be enrolled as her spouse under the terms of the Federal Employees Health Benefits Program because of her sex or sexual orientation, and that the plans would violate their contracts with OPM by enrolling Ms. Golinski’s wife as a beneficiary. 

  4. The Office of Personnel Management shall cease at once its interference with the jurisdiction of this tribunal. Specifically, OPM shall not advise Ms. Golinski’s health plan, the Blue Cross and Blue Shield Service Benefit Plan, that providing coverage for Ms. Golinski’s wife violates DOMA or any other federal law. Nor shall OPM interfere in any way with the delivery of health benefits to Ms. Golinski’s wife on the basis of her sex or sexual orientation.

  5. The Blue Cross and Blue Shield Service Benefit Plan shall enroll Ms. Golinski’s wife within 30 days of receipt of the appropriate forms from the Administrative Office of the United States Courts without regard to her sex or sexual orientation.

  6. The Judge authorized Ms. Golinski to take appropriate action to secure compliance with this order, such as by petition for enforcement or mandamus. I trust, however, that such action will not be necessary.
 The Judge's order was appealed and Ms. Golinski filed suit. See, Golinski v. U.S. Office of Personnel Management, No. 10-cv-00257-SBA (N.D. Cal. filed Jan. 20, 2010).

The parties to the appeal filed a motion to stay the appeal pending resolution of Federal District Court Case. Judge Kozinski granted that motion. Stay tuned this case is worth watching.

Friday, July 30, 2010

THE CASE AGAINST LYNN JENKINS CHAPTER 35 - A FOLLOW THE MONEY UPDATE

Bartlett & Co., formerly # on the list of contributors for Lynn Jenkins, has fallen off her list. A review of Bartlett & Co. on Open Secrets shows only that they are the top contributor for these five politicians:

Mission, Kansas' James B. Hebenstreit, Bartlett & Co. President, is reported as having given $30,400 to the National Republican Congressional Committee [NRCC]. Among his other contributions are three contributions of $2,400 each to Lynn Jenkins [6/30/09, 6/30/09, 12/31/09]. Marilyn Hebenstreit has given Lynn Jenkins $4,400.
• Bartlett & Co. to Christopher "Kit" Bond (R) in 2010
• Bartlett & Co. to Sam Brownback (R) in 2010
• Bartlett & Co. to David Dreier (R) in 2008
• Bartlett & Co. to Jerry Moran (R) in 2008
• Bartlett & Co. to Sam Graves (R) in 2006
The NRCC is reporting having raised $75,531,984 for the 2010 election cycle. The Democrats counterpart to the NRCC is the Democratic Congressional Campaign Committee, [DCCC] and they have raised $93,706,323 to date according to Open Secrets.

Mr. Hebenstreit and his firm, Bartlett & Co. certainly appear to have given enough money to Lynn Jenkins to remain included on the list of her largest donors.

The Credit Union National Association donation to Lynn Jenkins is now up to $10,000, up from $6,400. The Credit Union National Association has given a total of $326,510 to Members of the House Committee on Financial Services, Lynn Jenkins' committee.

Legg Mason is a PAC for Security Brokers and Investment Companies. In the data gap that occurs between reporting cycles Legg Mason is reported as having not made any candidate expenditures for 2010, through 6/30/10. Yet the latest report on Lynn Jenkins, 7/11/10, shows Legg Mason has given Lynn Jenkins $9,600. That's the same amount Bartlett & Co. gave Lynn Jenkins. Is this a data entry error? What happened to Bartlett & Co. and when did Legg Mason's money get reported?

The American Bankers Association have given Lynn Jenkins another $2,000. She has now taken $10,000 from them. Gosh, no wonder she votes against eliminating Golden Parachutes.

A new entry to Lynn Jenkins' heavy hitter hit parade now shows up with $7,000 in hand for her. Accounting giant Deloitte Touche Tohmatsu . From Open Secrets comes this summary of this Big Four Accounting Firm:

Now you see $7,000 more reasons why Lynn Jenkins voted against the Dodd-Frank Wall Street Reform and Consumer Protection Act twice. She voted against regulating the culprits that brought down our economy on 12/11/09 during roll call 968. She voted against the bill again on 6/30/10 during roll call 41. The new law, Public Law 111-203, permits recovery of exorbitant executive compensation, including Golden Parachutes, from Fat Cats at failed financial firms. Lynn Jenkins talks against Golden Parachutes but votes to keep Golden Parachutes.
Deloitte & Touche is one of the remaining Big Four accounting firms and once offered its clients one-stop shopping for accounting, consulting and other financial services. But the collapse of Enron and its resulting fallout for the accounting industry forced the firm to rethink its business strategy. In spring 2002, Deloitte & Touche announced it would spin its consulting business into a separate company. Like other firms, however, the company has continued to lobby against bills that would strengthen oversight of the industry and further restrict the auditing/consulting relationship between firms and their clients. Yet the industry’s troubles continue to mount. In September 2002, federal investigators began to probe Deloitte & Touche for its role in a bookkeeping scandal at Adelphia Communications, one of the firm’s biggest clients.


More new donors make their appearance with the new reporting cycle. The National Association of Realtors chip in with $5,000 in PAC money for Lynn Jenkins. Burlington Northern Santa Fe's PAC also gives Lynn Jenkins $5,000. American Crystal Sugar's Pac gives Lynn Jenkins $5,000. The American Association of Orthodontists PAC gives Lynn Jenkins $5,000. The National Association of Home Builders PAC gives Lynn Jenkins $5,000. The Majority Committee PAC, a PAC that gets its money from other PACs, gives Lynn Jenkins $5,000.

Fat Cat money just keeps oozing Lynn Jenkins way.


Thursday, July 29, 2010

JOHN BOEHNER'S "CASH-FOR-SPEAKER" PAY FOR PLAY SCHEME

House Minority Leader John Boehner

John Boehner covets the office of Speaker of the House. No other explanation will suffice as he throws dignity overboard and begins the big hustle being touted as the Cash-for-Speaker Program. News of this dubious promotion was broken by Politico's Jonathan Martin, http://www.politico.com/news/stories/0710/40380.html.

The shameless selling of access Congressional power makes Harlem's Democratic Representatives shortcomings look inconsequential. And Charlie Rangel's neck deep in hot water.

Wikipedia's reference to "pay to play" says: In politics, pay to play refers to a system, akin to payola in the music industry, by which one pays (or must pay) money to become a player,.

Boehner's promise to Fat Cats is that they will have special access to him, as Speaker of the House, when they give all they can legally give to Boehner and other Republican interests. Whether you are the person giving the cash or the rainmaker delivering the Fat Cats to Boehner and the GOP you get:
Typically, the payer (an individual, business, or organization) makes campaign contributions to public officials, officials, or parties themselves, and receives political or pecuniary benefit such as no-bid government contracts, influence over legislation, political appointments or nominations, special access or other favors. The contributions, less frequently, may be to nonprofit or institutional entities, or may take the form of some benefit to a third party, such as a family member of a governmental official.


The phrase, almost always used in criticism, also refers to the increasing cost of elections and the "price of admission" to even run and the concern "that one candidate can far outspend his opponents, essentially buying the election."


While the direct exchange of campaign contributions for contracts is the most visible form of Pay to Play, the greater concern is the central role of money in politics, and its skewing both the composition and the policies of government. Thus, those who can pay the price of admission, such as to a $1000/plate dinner or $25,000 "breakout session," gain access to power and/or its spoils, to the exclusion of those who cannot or will not pay: "giving certain people advantages that other[s] don't have because they donated to your campaign." Good-government advocates consider this an outrage because "political fundraising should have no relationship to policy recommendations." Citizens for Responsible Ethics in Washington called the "Pay-to-Play Congress" one of the top 10 scandals of 2008


Incumbent candidates and their political organizations are typically the greatest beneficiaries of Pay-to-Play. Both the Democratic and Republican parties have been criticized for the practice. Many seeking to ban or restrict the practice characterize pay-to-play as legalized corruption.


The opposite of a pay-to-play system is one that is "fair and open"; the New Jersey Pay to Play Act specifically sets out bid processes that are or are not considered fair and open, depending upon who has contributed what to whom. http://en.wikipedia.org/wiki/Pay_to_Play


  • Conference Calls with Guest Speakers*
  • Password protected Website access for political updates and insider briefings*
  • A direct line to a personal contact at the "Boehner for Speaker" campaign*
  • Access to national meetings with elected officials and policy experts*
  • Access to regional and small group events with Republican VIPs**
  • Calls from senior level staffers to personally update you and provide information on Republican activities***
  • VIP access to all events, including roundtables, briefings, breakout discussions, and interactive panel discussions***
  • Meetings with Leader Boehner, and much more***
* Denotes Benefits for $15,000 Contributors or Those Who Help Raise $50,000+
** Denotes Benefits for $25,000 Contributors or Those Who Help Raise $75,000+
*** Denotes Benefits for $37,800 Contributors or Those Who Help Raise $100,000+

See the document for yourself at http://www.politico.com/static/PPM136_100728_boehner_tabs.html.

All of these nice GOP/Tea Party candidates are running around Kansas and the other 49 States telling us how they plan to get rid of the Democratic Party's debt-ridden and job-killing agenda.

They brazenly omit that it is they, the Republicans, who squandered a budget surplus into record budget deficits, waged two wars off the books, eliminated critical regulatory safeguards leading to the worst economic meltdown since the Great Depression, and wasted two years saying no to America's Economic Recovery. The Democrats inherited debt and joblessness from these Republicans and they think the American voters will just forget who caused our national trauma?  Rant on Republicans Rant on!

A pig in a poke

If you think Boehner, this Cash-for-Speaker Raw Deal, and his Republican cohorts are going to establish a limited government approach by selling the richest of the rich access to power, then go look in the mirror. Does the reflection remind you of someone who just bought pig in a poke? It should.

THE CASE AGAINST LYNN JENKINS CHAPTER 34 - SHE & THE GOP/TEA PARTY TRY TO BLOCK MILITARY CONSTRUCTION AND VETERANS AFFAIRS APPROPRIATIONS

Yesterday House Republicans, including Lynn Jenkins, voted en masse not to consider H.R. 1559. Roll call 476 provided for consideration of the appropriations bill for military construction and the Department of Veterans Affairs. The vote was 243 to 178. Not one Republican voted to bring the bill to the floor to fund military constructions and the Department of Veterans Affairs, NOT ONE!

The bill passed, the bill passed overwhelmingly. Republicans are obstructionists but they are not stupid. Voting no on H.R. 1559 is political suicide. Voting no on roll call 476 was consistent with the arrogance of not governing. Saying no is not governing.

The Associated Press reports this morning that the measure advanced on a vote of 411 to 6. That information is not available on Thomas, http://www.google.com/hostednews/ap/article/ALeqM5gBPaHA8wyvhZsKWPW8Uxp30QpfqgD9H8DNVG0. The House must have been working late last night.

Minority Leader John Boehner offered the only amendment to the bill. He wanted to gut funds for the Department of Veterans Affairs. That's your GOP/Tea Party supporting the troops. NOT! Actually, Boehner does not like the V.A's, lobbying office. How dare them folks who served come back and want to be heard by the Congress. Don't they know they're competing with FAT CATS like the Big Banks, the Insurance Lobby, and the Military-Industrial Complex.

Yeah Boehner, Ms. Jenkins' leader, doesn't have time to hear from the troops. Of course he has led the Party of No into a conundrum. Their demagoguery on spending has consequences. They, who wasted a budget surplus while running up record budget deficits, they who waged two wars off the books, they who removed critical regulations from the financial sector resulting in the worst economic collapse since the Great Depression, and they who have misspent the past two years obstructing the Economic Recovery, it is they who have suddenly found Jesus and can't borrow a dime more to keep this nation afloat.

I think the GOP/Tea Party won't be able to sell this manure come November. In the meantime expect them to rant on.

Wednesday, July 28, 2010

Preliminary Injunction Issued Against Arizona's SB 1070



Federal District Judge Susan Bolton

Federal District Court Susan Bolton is hearing the matter of the United States v. Arizona, et al. Today she blocked key portions of Arizona's "papers please" SB 1070 law written by Kansas' candidate for Secretary of State Kris Kobach. On Kansas City's local FOX affiliate, WDAF, Kobach downplays the significance of Judge Bolton's ruling. He should not.

Preliminary Injunctions are not issued at the drop of a hat. They belong to a class of Equitable Remedies known as Injunctions. A Preliminary Injunction does not always blossom into a Permanent Injunction. Neither is overturning a Preliminary Injunction a slam-dunk.

Four elements must be established before a court will issue a Preliminary Injunction. First the Plaintiff must show a reasonable likelihood that they will prevail on the merits of the case. Second, irreparable harm will occur absent the order. Third is a balancing test where the judge must find that less harm will accrue to the Defendants if the Preliminary Injunction is issued compared to more harm accruing to the Plaintiffs if the Preliminary Injunction does not issue. Finally, that the public interest weighs in favor of the Plaintiff.

Here is what early reports are saying about Judge Bolton's ruling. The New York Times is reporting:

The portion of the law that requires an officer make a reasonable attempt to determine the immigration status of a person stopped, detained or arrested if there’s reasonable suspicion they’re in the country illegally.

The Tucson Citizen gives a more detailed report of Judge Bolton's actions, reporting that these key features of SB 1070 will not be going into effect next week:

The portion of the law that requires an officer make a reasonable attempt to determine the immigration status of a person stopped, detained or arrested if there’s reasonable suspicion they’re in the country illegally.

• The portion that creates a crime of failure to apply for or carry “alien-registration papers.”

• The portion that makes it a crime for illegal immigrants to solicit, apply for or perform work. (This does not include the section on day laborers.)

• The portion that allows for a warrantless arrest of a person where there is probable cause to believe they have committed a public offense that makes them removable from the United States.
The Tucson Citizen says other parts of SB 1070 will not be enjoined:

The ruling says that law enforcement still must enforce federal immigration laws to the fullest extent of the law when SB 1070 goes into effect at 12:01 a.m. Thursday. Individuals will still be able to sue an agency if they adopt a policy that restricts such enforcement.

Bolton did not halt the part of the law that creates misdemeanors crimes for harboring and transporting illegal immigrants.

Bolton’s ruling followed hearings on three of seven federal lawsuits challenging SB 1070. Plaintiffs include the U.S. Department of Justice, the American Civil Liberties Union, Phoenix and Tucson police officers, municipalities, illegal immigrants and non-profit groups.

She denied legal requests by Gov. Jan Brewer, Maricopa County Sheriff Joe Arpaio and several other defendants seeking to have the lawsuits dismissed because, they argued, the plaintiffs did not prove that they would be harmed by the law if it went into effect.

Judge Bolton did not enjoin §1 of SB 1070, providing for the intent of the bill; Portions of §2 of SB 1070.
From Judge Bolton's Order, these are the enjoined sections:

Applying the proper legal standards based upon well-established precedent, the Court finds that the United States is likely to succeed on the merits in showing that the following Sections of S.B. 1070 are preempted by federal law:

Portion of Section 2 of S.B. 1070 A.R.S. § 11-1051(B): requiring that an officer make a reasonable attempt to determine the immigration status of a person stopped, detained or arrested if there is a reasonable suspicion that the person is unlawfully present in the United States, and requiring verification of the immigration status of any person arrested prior to releasing that person

Section 3 of S.B. 1070 A.R.S. § 13-1509: creating a crime for the failure to apply for or carry alien registration papers Portion of Section 5 of S.B. 1070 A.R.S. § 13-2928(C): creating a crime for an unauthorized alien to solicit, apply for, or perform work Section 6 of S.B. 1070 A.R.S. § 13-3883(A)(5): authorizing the warrantless arrest of a person where there is probable cause to believe the person has committed a public offense that makes the person removable from the United States

The Court also finds that the United States is likely to suffer irreparable harm if the Court does not preliminarily enjoin enforcement of these Sections of S.B. 1070 and that the balance of equities tips in the United States’ favor considering the public interest. The Court therefore issues a preliminary injunction enjoining the enforcement of the portion of Section 2 creating

A.R.S. § 11-1051(B), Section 3 creating A.R.S. § 13-1509, the portion of Section 5 creating A.R.S. § 13-2928(C), and Section 6 creating A.R.S. § 13-3883(A)(5).

The Preliminary Injunction has the effect of freezing the status quo, the enjoined parts of SB 1070 will not go into effect. Expect a full trial on the merits of the case with the United States asking for a Permanent Injunction.

This case is far from over.

Radical Hospitality, SB 1070, & Kris Kobach

The Kansas City Star published the following letter to the editor in their Wednesday, July 28th paper.  http://www.kansascity.com/2010/07/27/2112447/letters-july-28.html


Kobach cover-up

Kris Kobach isn’t the first politician to employ racially neutral laws that violate the equal protection clause of the Fourteenth Amendment to the Constitution. He reminds me of former Mississippi governor J.P. Coleman.

Coleman, like Kobach, was a bright legal technician who drafted his policies in racially-neutral terms in hopes of thwarting the civil rights of African-Americans. Jim Crow laws were often written in racially-neutral terms. Despite Kobach’s protestations, I doubt S.B. 1070 will survive legal challenges based on either the supremacy clause or the equal protection clause.

My chief complaint against Kobach’s legislation is not based on constitutional theory. It violates a spiritual value known as “radical hospitality,” which calls for extending welcome beyond the boundaries, beyond places of worship, into every corner of society.

I am reminded that but for the grace of God, any of us could be in the place of economic refugees. American citizens of Hispanic descent should not be burdened by Kobach’s law. Kansas can do better than electing Kris Kobach.

Michael Box
Osawatomie
For reference purposes, I wrote that letter, J.P. Coleman was a Federal Judge and Mississippi Governor, and Kris Kobach is running for Kansas' Secretary of State.  Michigan's Democratic Representative to Congress once referred to Coleman as the "thinking man's segregationist."  Here's what these folks look like.


J.P. Coleman


John Conyers


Kris Kobach

Those who support Arizona's SB 1070 claim that it mirrors America's immigration law.  While the Arizona statute parrots federal immigration law, it is significantly different in that the stated purpose of the Arizona statute is attrition through enforcement.

Kris Kobach's statute makes an attempt to usurp authority granted to the Congress by the Constitution.  What Kobach didn't think of, or fails to mention, is that the Congress has the authority to enact laws to enforce federal power.  Immigration is a federal power.

U.S. Constitution Article I §8 cl. 18

The Congress shall have Power - To make all Laws which shall be necessary and proper for carrying into Execution the foregoing Powers, and all other Powers vested by this Constitution in the Government of the United States, or in any Department or Officer thereof.
Kobach would have the States exercise the elastic nature of the Necessary and Proper Clause in contravention of the Constitution of the United States.

Much has been written and much is being practiced when it comes to Radical Hospitality.  A fine distillation of this core spiritual value is found in a short poem by Edwin Markham.

Outwitted


He drew a circle that shut me out —
Heretic, rebel, a thing to flout.
But Love and I had the wit to win:
We drew a circle that took him in!

Tuesday, July 27, 2010

THE CASE AGAINST LYNN JENKINS CHAPTER 33 - SHE'S A SHILL FOR THE INSURANCE INDUSTRY


This is Lynn Jenkins, she does not represent us

Five years ago America's Gulf Coast faced Hurricane Katrina, one the five deadliest storms and the costliest natural disaster the nation has ever known. We all remember the immediate aftermath of that storm. The suffering in the streets of New Orleans and the chaos at the Superdome are permanently etched in our memories.


Hurricane Katrina

What we ignore and tend to forget is that thousands and thousands of homes were battered by hurricane force winds for hours before any storm surge finished them off. That means that thousands and thousands of homeowners and their families with adequate, or more than adequate, insurance expected their homeowner's insurance policies to make good on their losses.


Insurance Claims were Denied

Didn't happen. Katrina left us with a prime example of what I mean when I say that corporations don't have a butt to kick or a soul to save. The insurance adjusters claimed the loss came by water not from the wind. Why is that important? A water loss is a flood loss and the taxpayers pick up the tab. A wind loss is a covered hazard and the insurance company picks up the tab.


Representative Gene Taylor [D -Ms] at podium

Bottom line, the insurance industry refused to pay what they owed. Then, State by State, they pulled their business lines out of the Gulf Coast States. Here's an example provided by Mississippi's Democratic Representative from the floor of the House during consideration of H.R. 1264, the MULTIPLE PERIL INSURANCE ACT OF 2009:


Madam Speaker, if I was a shill for the insurance industry, and apparently we have our share on the floor today, I would do everything but talk about what the insurance industry did to south Mississippi after Hurricane Katrina. I would forget, if I was a member of the Rules Committee, the 12 years that they controlled the floor of the House of Representatives, the 12 years that they could have cut the Amtrak subsidy had they wanted to, but they didn't.



So let's get back to what we are going to talk about today. And, again, I thank the leadership for bringing this to the floor.



If you had visited south Mississippi in August of late 2005, gone to a little town called Bay St. Louis, you could have driven down the street and seen this house. It belonged to some folks named Corky and Molly Hadden. On August 29, 2005, Hurricane Katrina hit south Mississippi. So the Haddens left this because their Nation warned them that a bad storm was coming, and came home to this.



Corky is a financial manager; he is a smart guy. He had lot of insurance, he thought. As a matter of fact, Corky had $650,000 worth of insurance on that house. The problem was under the rules of the National Flood Insurance Program that Mr. Sessions agrees needs changing, and I am trying to change today, we paid the private sector, State Farm, All State, Nationwide, we pay them to sell the policy; they get a premium. We pay them to adjust the claim.



The problem is no one bothered to think that wait a minute, we are letting that claims adjuster decide he is playing God. He can say the wind did it, which means his company has to pay, State Farm, Nationwide or All State; or he can say the water did it, which means the taxpayers have to pay.



You are right, Mr. Sessions, we should not have paid that $18 billion. The reason we paid that $18 billion is a bad set of rules that allowed companies like State Farm, All State, Nationwide to stick the taxpayers with their bills. So 18 months after this event, Mr. Hadden, who had $650,000 worth of insurance on that nice house, was paid nothing by his insurer, State Farm Insurance Company.



Again, if you are a defender of the insurance industry, if they are helping you with your campaigns, you sure as heck don't want to talk about that, do you?



The next house, if you had gone a little bit further down the same street, you would have seen one of the oldest houses in Bay St. Louis, built around 1800. So from 1800 to 2005, no telling how many hurricanes it survived. It belonged to the Benvenutti family, a pretty old house.



This is what it looked like when they left because their Nation told them to get the heck out of there, there is a bad storm coming. Let's see what they came home to. This is what they came home to.



You know, for most people, including Mississippians, your house is your biggest investment. It is, to a large extent, an extension of yourself. So the Benvenuttis, realizing that that house meant a lot to them, had a lot of insurance, or so they thought, $586,000. When they filed their claim, for almost 24 months they were paid nothing on their wind insurance.



Now why is this significant? Well, NOAA, the Navy Oceanographic Lab and others went back and looked at the events that were called Hurricane Katrina, and NOAA tells us that for 4 hours before the storm surge arrived in south Mississippi, that house, the house before it, was subjected to hurricane-force winds for 4 hours before the water ever got there. Yet the insurance companies wanted to turn around and blame everything on the water. Why?



Because they could stick the taxpayers with the bill.



The next house is a more typical home, more modest home. This one is about a mile inland, about a mile inland, pretty good ways from the water. Beautiful home. This is what the folks who lived there, when they left, looked at last.



This is what they came home to.



It's not just three houses; it's not 30 houses. It was 30,000 houses that this happened to. So, again, these folks, knowing this was a big part of their lives, had $249,000 worth of insurance. Their insurance company was slightly more generous than the previous two times and offered them $10,000.



Now, Mr. Sessions points out that, incorrectly, that maybe government shouldn't be doing this. Well, maybe he doesn't talk to his folks in his State capital often enough because if he had he would know that his State is already doing this.



In the aftermath of Katrina, on a State-by-State basis, the insurance industry pulled out, left a vacuum. People had to have some form of wind insurance; and so on a State-by-State basis, the State picked up that obligation.

The Republican Minority is playing a shell game. They inherited a budget surplus from former Democratic President Bill Clinton. They and Republican President George Bush ran up record deficits, waged two wars off the books, gave the richest Americans huge tax breaks, and removed critical financial regulations leading to the worst economic meltdown since the Great Depression. Now these same wastrels who squandered the budget surplus have misspent these past two years obstructing the Economic Recovery and serving the interests of Wall Street, Big Banks, and the Insurance Lobby.

H.R. 1264, the MULTIPLE PERIL INSURANCE ACT OF 2009 passed the house on roll call 466, by a margin of 228 to 183. Lynn Jenkins, champion of Fat Cats, Big Banks, Insurance Companies & people so rich they have more dollars than sense again showed her true colors by voting against regular people.