McClenny, Moseley & Associates, a Houston-based law firm, has been suspended from practice in a Louisiana federal court for 90 days following a judge’s concerns about the firm’s purported representation of clients with claims related to Hurricanes Laura, Delta, and Ida. U.S. District Judge James D. Cain Jr. of the Western District of Louisiana ordered the suspension on March 4, citing evidence that the firm had filed “numerous suits” against insurers that never issued policies to the plaintiffs and had filed lawsuits for plaintiffs who had already settled their insurance claims. The judge also cited an alleged instance where MMA improperly signed a settlement check.
In addition to the court suspension, the Louisiana Department of Insurance had also targeted MMA with a cease-and-desist letter on February 17. The letter accused the firm of misrepresenting that hurricane victims had retained it to several insurance companies in connection with MMA’s contractual arrangement with Apex Roofing and Restoration. The letter cited evidence from hearings by Cain and a different district judge in the Eastern District of Louisiana. According to the cease-and-desist letter, MMA had “admitted to 856 misrepresentations to Louisiana insurers that MMA was retained by the insureds/homeowners when MMA did not represent those insureds/homeowners relative to claims for payments and benefits under those insurance policies.” The firm also admitted settling nine cases in which it did not represent the plaintiffs.
The Louisiana commissioner of insurance, James J. Donelon, announced the cease-and-desist order in a February 17 news release, calling the size and scope of McClenny, Moseley & Associates’ illegal insurance scheme “like nothing I’ve seen before.” Donelon said, “the order is necessary to protect policyholders from the firm’s fraudulent insurance activity.”
Following the court’s suspension of the firm, the case will be referred to all the judges in Judge Cain’s court for the possibility of further discipline, including a permanent suspension, at the end of the 90 days. A representative for the firm told Judge Cain in a hearing that the firm was trying to help people who would have lost out on their rights absent representation.
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Law360 attempted to contact MMA’s two founding partners, John “Zachary” Moseley and James McClenny, and its Louisiana managing partner, R. William Huye III, but could not reach them. The three lawyers did not immediately respond to requests for comment sent by email. Two did not immediately respond to voicemails, and the third, Moseley, did not list a contact number on the firm’s website. Calls to MMA’s general number were cut off.
One lawyer who worked at the firm told Law360 that he resigned on Saturday and had nothing to do with the policies and procedures that led to the suspension.
The suspension of McClenny, Moseley & Associates is a serious matter and reflects the court’s concerns about the firm’s alleged misconduct in representing clients with claims related to hurricanes. It remains to be seen whether the firm will be permanently suspended from practicing in Louisiana federal court or face other disciplinary action. The case serves as a reminder to lawyers of the importance of maintaining ethical and professional conduct in their practice and to clients who must carefully choose their legal representation.