Insurance company files legal action in TISA case

The insurance company representing defendants named in recent lawsuit against current former and members the Trenton Indian Service Area Board has filed a legal action to determine if it must cover legal costs and damage costs if the defendants are found liable under its policy terms.

The Lexington Insurance Company of Boston filed a complaint for declaratory relief on Aug. 1 through the Northwest District Court in Williston.

A group calling itself the TISA for Active Change filed a lawsuit against the current and former board members in Tribal Court in Belcourt. The charges in the suit include allegations that former chairwoman Cynthia LaCounte had misused tribal traveling money; that current and former board members took no action against her; that a portion of money borrowed to purchase Arrow Sanitation, formerly Dave's Sanitation, was not spent on the purchase of the sanitation company; and that there were other questionable financial practices with TISA money.

A tribal judge ruled to suspend the board and defendants from tribal business until a full audit and investigation are completed, but an appeal was filed.

“The insurance company brought an action in Williams County for a declaratory judgment, asking the court to decide if the insurance policy covers for the acts alleged against the defendants in the Turtle Mountain Tribal action,” said Gary Wolberg, an attorney of the Fleck, Mather and Strutz Law Firm of Bismarck. The firm is representing the Lexington Insurance Company.

Wolberg said the insurance company's action does not reflect whether or not it believes named defendants are liable or not liable, but questions whether the company's policy covers their legal defense and if the insurance company will be responsible for damages assessed against the defendants if they are found liable.

“Our position is that these are not covered under the insurance policy, and we are asking the court for a ruling to that effect,” Wolberg said.

When asked why the motion was not made through the tribal court, Wolberg said most of the defendants named in the case reside in Williams County, and are residents of the state of North Dakota.

“We want the court to determine what responsibilities we have, if any. We feel there is no coverage for the acts alleged against the defendants in the tribal court. Our policy does not cover willful unlawful or wrongful acts,” he said.