A Burden Taxpayers Don’t Deserve

The bad news keeps piling up for Chuck Quackenbush. Earlier this year, The Times disclosed that his office made secret deals with insurance companies accused of mishandling Northridge earthquake claims, pressuring them to contribute $12.8 million to foundations created largely to burnish the commissioner’s public image. That revelation prompted even fellow Republicans to desert Quackenbush, leaving him to resign as insurance commissioner under the threat of almost certain impeachment. Then, on Wednesday, the state attorney general’s office declared that he had exceeded his legal authority in even creating the foundations.

That opinion could be used as the legal basis to reopen investigations of claims handled after the earthquake. More immediately, however, it should prompt state officials to scrutinize the use of public funds to pay Quackenbush’s legal fees.

In his final days in office, the disgraced commissioner approved contracts obligating taxpayers to cover more than $1 million in legal fees for private lawyers who represent him and his top staffers in ongoing investigations. Most of the $1 million would go to a team of lawyers that counseled Quackenbush in hearings before the Legislature and that will represent him in a complaint pending before the Fair Political Practices Commission, the state board that oversees campaign financing, and in the inquiry by state Atty. Gen. Bill Lockyer. Tuesday, Lockyer revealed that a federal grand jury is investigating the misconduct charges. The remaining contracts with the lawyers would cover the legal fees of three Quackenbush deputies.

The former insurance chief authorized the contracts under a California law that requires state-funded legal defense of government officials who face legal action as a result of decisions they made as part of their official duties. The part that needs further scrutiny is the definition of “official duties.” Certainly the attorney general’s ruling makes that a tough sell for Quackenbush.

Why should taxpayers pay at all, if the evidence indicates that Quackenbush acted outside his authority? After all, this is not some little dispute over insurance rates but rather involves allegations that touch on using public office for personal gain.

The Department of Insurance, now under acting Commissioner Clark Kelso, is responsible for monitoring expenditures under these legal contracts. Each includes provisions allowing the state to cancel the contract with no further obligation, according to the state Department of General Services. Kelso would be wise to think seriously about this option. Let Quackenbush start paying for his own lawyers.