Is This Fight Really Necessary? : Lungren, Garamendi should cooperate on Proposition 103

California Atty. Gen. Dan Lungren and Insurance Commissioner John Garamendi are in an ugly--and unnecessary--political showdown over Proposition 103, the insurance reform initiative approved by voters in 1988.

The dispute has deteriorated into a nasty exchange of allegations obscuring the real issue: Allowing the insurance commissioner to secure the best legal help to implement Proposition 103. Democrat Garamendi, the state’s first elected insurance commissioner, recently unveiled a $2.5-billion insurance rebate program, but expects a big court fight with insurers over it.

Lungren, a Republican, has raised questions about the $195-an-hour contract that Garamendi’s office has with attorneys Michael Strumwasser and Fred Woocher. The lawyers, insurance specialists who worked for Lungren’s predecessor, John Van de Kamp, have won nearly every Proposition 103 battle since becoming Garamendi’s counsel. Garamendi says they are the best lawyers for the job, but Lungren maintains that the circumstances of their contract “create an appearance of a ‘sweetheart’ deal” in violation of California laws prohibiting state officials from working on private contracts they had a part in negotiating.

Garamendi denies any violation and argues that it is not uncommon for state departments to hire outside lawyers to handle sensitive matters. Indeed, Garamendi’s predecessor, Roxani Gillespie, was allowed by Van de Kamp to hire her own Proposition 103 lawyer--for $225 an hour.

Garamendi and other Proposition 103 proponents, never known for failing to seize a good political opportunity, have accused Lungren of siding with the insurance industry. Lungren denies this and says he will allow Garamendi to hire the lawyers as staff attorneys. Garamendi replies that he has no staff openings.

Under the circumstances, Garamendi should be free to choose the lawyers he wants. The people voted for Proposition 103 and the sooner it is finally implemented, the better. Intentionally or not, Lungren is only slowing the process and risks angering voters for no good reason. He’d be well advised to back off.