VVWD To Sue Insurer

At the Oct. 21 board meeting, the Virgin Valley Water District Board voted unanimously to hire a law firm and sue the Nevada Public Agency Insurance Pool commonly known as “Pool Pact.”

The district contends the insurer failed to provide coverage on two claims, each for $500,000.  The claims are for losses the district sustained when two district employees fraudulently transferred district owned water shares in the Bunkerville Irrigation District.  Pool Pact has maintained that shares of water are not “securities” and thus ineligible for coverage.

Attorney Bo Bingham told the board that they had been unable to get a satisfactory response from Pool Pact or schedule a meeting with the Pool Pact board. “We didn’t get a real sense that they actually wanted to sit down with us and resolve this,” said Bingham.

Bingham told the board “At the direction of the board and staff, we looked at hiring a firm on contingency which would not cost the board any out of pocket money.”  Bingham told the board he had contacted several attorneys and one firm stood out as having the most experience in insurance coverage litigation, Morales Fierro and Reeves.  “Ramie Morales has reviewed all the information and he will take the case on a contingency basis,” said Bingham.

Director Rich Bowler said, “I don’t really want to put the ratepayers on the hook for any more lawyer bills so I favor the contingency.”  Bingham agreed and said that “We have done everything we can possibly do short of this action.”  Director Bubba Smith added “I believe we are going to have a positive outcome from it.”

Director Ellestad moved to hire Morales Fierro and Reeves on a contingency basis and allow legal counsel to negotiate the fees.  The motion was passed unanimously.


  1. OMD – Let me see if I have this right. The VVWD, at the insistence of deeply conflicted Kraog Hafen and his puppet Ted Miller make a HORRID decision to give local friend Bo Bingham AT LEAST a Million Dollars of VVWD money on an ill advised and trumped up lawsuit that many characterized as a personal vendetta, and now they are going to spend more money on lawyers trying to fight the State Insurance Pool. Guess What? I have written numerous times over the past few years that their ridiculous and unfounded claims WOULD NOT be covered by the State Insurance Pool because of their inadequate claims! Every time I did, Bo Bingham continued to assure that his ludicrous legal fees would be covered —– But as I predicted many times, they weren’t….and rational people saw that several years ago! So now that my accurate predictions have come true, they are going to spend MORE ratepayer money suing the State Insurance Pool? How many ways can you say MISMANAGEMENT of Ratepayer monies?

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