Leesville to settle health insurance suit

Published 8:44 am Tuesday, August 26, 2014

A Leesville City Council member who won a suit the city filed will soon be receiving repayment after the governing body voted unanimously in favor of an ordinance to do so.

Danny Dowd, who represents District 3, will receive four equal payments from the city of Leesville beginning next month totaling $21,933. The payments will include debt incurred by late council member William “Mike” Elliott who was also named in the suit and shared a lawyer with Dowd.

A 30th District Court judge dismissed the city’s suit in March this year, which argued that Elliott and Dowd illegally opted into the city’s health insurance plan and sought to recoup more than $120,000 in restitution from the insurance premiums and specified medical benefits. The city argued that the plan was intended for full-time city employees, and that elected officials did not count as full-time employees.

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Dowd said the settlement satisfied him.

“I am happy with that,” he said. “ I know someone upstairs is looking out for me.”

Judge H. Ward Fontenot ruled against the city and found that the burden of proof was on Leesville as city council members approved the budget each year, which included insurance plans for the council members.

Elliott was enrolled 2003-2010; Dowd was enrolled 2007-2010. 

Leesville City Council held a closed-door session during its regular meeting Monday, to discuss the councilmen’s settlement among other litigation with the city. When the council reconvened during regular session, it voted on an ordinance to repay Dowd. Dowd abstained and recused himself from the discussion when his lawsuit came up.

Leesville Mayor Rick Allen called the lawsuit a “frivolous waste of funds” and said the previous administration under Robert Rose, which filed suit, obtained council approval using misinformation.

“They were told they had no choice but to sue Dowd and Elliott,” he said.

According to the ordinance, the city paid $49,087 for its own legal fees. The total cost to the city of the litigation will be more than $71,000.

He added that some council members suggested going after the previous administration to recoup the cost, but Allen said he would not allow that. He would not specify which council members suggested the idea. (MGNonline)