July 1, 1995 in Idaho

Ag Blocked From Insurance Fund

From Staff And Wire Reports

Judge Jim Michaud this week issued a court order preventing the Idaho attorney general from taking over legal representation of the state Insurance Fund, pending a hearing.

Sandpoint attorney Joseph Jarzabek had sought the order, saying the premiums that employers pay to the insurance fund shouldn’t go to the attorney general’s office. Jarzabek also contended that a conflict of interest would be created, because the attorney general’s office also represents the state Industrial Commission, which hears injured workers’ claims.

His court action was filed on behalf of injured workers.

Jack McMahon of the attorney general’s office said there’s no conflict, as the attorneys who hear cases for the commission are not connected with the attorney general’s office. He also said the move will save Insurance Fund premium payers more than $100,000 a year.

The move is part of the attorney general’s consolidation of all state legal services, which was approved in legislation passed this year.

Jarzabek’s court action names only the insurance fund, not the attorney general’s office.

Michaud set a hearing for Aug. 7 for the insurance fund to show why it should not be permanently prevented from transferring its legal services.

, DataTimes

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