Insurers are like wait a damn minute….
“That lawsuit, filed by attorney John Campbell, ArchCity Defenders and the Saint Louis University Law School legal clinic in 2014, takes aim at Ferguson’s past practice of slapping defendants with fees to recall warrants issued when they were late to court — sometimes even just by a few minutes — or failed to appear. (The city of St. Louis, which also used to charge such fees, voluntarily stopped the practice after publicity in the Ferguson matter.) Everyone who paid Ferguson such fees after December 2009 has been certified as part of the class in the litigation.
Such fees are illegal under Missouri law, the suit alleges — they are, the suit explains, “not a tax nor is it related to actual costs incurred; rather it is charged by Defendant as a means of profiting from the issuance of traffic tickets and other violations.”
In its lawsuit, Allied World acknowledges that Ferguson has an insurance policy with it, one with a $2 million liability limit. But it believes it shouldn’t have to pay up for this litigation — a position it says it’s made clear to the city via letters beginning in January 2015 and up through last December. The city, however, continues to demand it cover the litigation’s costs.”
Insurer Sues City of Ferguson, Seeking Declaration of ‘No Duty to Defend’
An insurance company contracted with the city of Ferguson wants a judge to release it from any obligation to cover a class-action lawsuit over costly…