New Hampshire AG Wants Lawmakers to Intervene in Settlement

September 12, 2011

New Hampshire Attorney General Michael Delaney is objecting to a proposed settlement in a tug-of-war over $110 million of surplus money in a state-created malpractice insurance fund because lawyers would get up to $27 million of it.

Delaney wrote Friday that the settlement is inconsistent with legislative intent and wants lawmakers to intervene.

Colin Manning, spokesman for Gov. John Lynch, said the public will be outraged to learn lawyers could get $27 million that could have been spent on services for the poor. Lynch had wanted to use the surplus to pay for services in the last budget, but the courts rejected the state’s claims.

The rulings left policyholders expecting at least some of the money. Delaney said the Legislature directed that the surplus be paid to the policyholders.

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