R.I. Governor Appeals Judge’s Ruling Blocking His Beacon Mutual Firings

May 30, 2006

Rhode Island Gov. Donals Carcieri is appealing a judge’s decision that bars him from firing two members of the board of directors at Beacon Mutual Insurance Co.

A Superior Court judge last week denied Carcieri’s bid to remove George Nee and Henry Boeniger from the board of the state’s dominant workers’ compensation insurer. Carcieri sought to remove the two following the release of an audit that detailed questionable business practices.

An attorney for Carcieri filed a notice of appeal Thursday with the Rhode Island Supreme Court, challenge the decision by Superior Court Judge Stephen J. Fortunato Jr.

Nee and Boeniger, both gubernatorial appointees, had said they were being discriminated against because they work for labor unions and that they had the right to a hearing.

A company-sponsored audit report released last month found that Beacon improperly gave some clients and insurance agents price breaks.

In response, Beacon fired its two top executives. But Carcieri said he also wanted a shake up on the board and demanded that Nee and Boeniger step down.

They refused to step down and contested the governor’s order in court. Fortunato issued a temporary restraining order earlier this month to stop Carcieri from firing the board members.

Was this article valuable?

Here are more articles you may enjoy.