Wednesday, September 05, 2007

Beshear Is Re-Inventing His KY Central Role

The Courier-Journal reports on a minor dust-up between the Fletcher and Beshear camps about court records in the case of the defunct Kentucky Central Life Insurance Company.

Fletcher's campaign has criticized Beshear for fees of about $20 million paid to Beshear's former law firm, Stites & Harbison, for representing the state Department of Insurance in the complex litigation to recover money for policyholders, creditors and shareholders in the wake of the financial collapse of Kentucky Central in the 1990s.

Beshear and the firm say the state was charged rates far below what the firm charges private sector clients and that the firm did an excellent job in recovering money for policyholders and others from those whose actions contributed to the company's collapse.

The litigation wasn't nearly as "complex" as it was unnecessary. The company had already been raped and pillaged by insiders, but was still quite salvageable and would very likely still be operating today if Stites & Harbison hadn't taken the money and run. Beshear and some of his pals in the media have worked diligently to spin this sad tale as one of lawyers riding in on white horses to save the day. In truth, they were more like vultures who swooped in on their prey and, finding it still alive, they killed it.

The Fletcher folks are on to something here. I can only hope they will make something of it.