From The Associated Press, 7/27/05:
http://www.timesdispatch.com/servlet/Satellite?pagename=RTD%2FMGArticle%2FRTD_BasicArticle&c=MGArticle&cid=1031784082708&path=!news&s=1045855934842
Republican Party sues insurance carrier
State GOP suit claims firm didn't reimburse eavesdropping payout

BY BOB LEWIS
ASSOCIATED PRESS
The Republican Party of Virginia is suing its liability insurance
carrier, seeking nearly $1 million in reimbursement for the GOP's
payout to settle a lawsuit over the eavesdropping scandal and
attorneys' fees the insurer refused to cover.
The state GOP contends in a complaint filed in U.S. District Court in
Richmond that the Union Insurance Co. of Lincoln, Neb., breached its
contract by not covering the $750,000 the party paid in December to
Virginia Democrats who sued over two intercepted conference calls.
The lawsuit also seeks $200,000 for legal bills from the GOP's
nine-month court battle with Democratic legislators and other party
officials who alleged top Republican operatives violated their privacy
rights.
The party contends it should have been covered because it did not know
about or condone the espionage on calls made March 22 and 25, 2002,
among Democratic lawmakers and, briefly, Gov. Mark R. Warner.
The Democrats from across the state met by phone to discuss legal
strategy for challenging the 2001 Republican-authored legislative
redistricting plan.
The party's former executive director, Edmund A. Matricardi III,
secretly monitored the calls and pleaded guilty in 2003 to a single
federal count of intercepting a wire communication.
His boss at the time, former state GOP Chairman Gary R. Thomson,
pleaded guilty to a related misdemeanor and stepped down as chairman.
He listened with Matricardi to part of the second Democratic
conference call.
The Republican Party contends that as a corporation, it was harmed by
the unsanctioned mischief of rogue operatives.
"The insurance carrier refused to provide coverage and we are asking
the courts to interpret the terms of our insurance policy," said Shawn
M. Smith, the state GOP's current executive director.
John Thelen, a representative of the insurance company in Des Moines,
Iowa, had not seen the lawsuit and could not comment on it Monday
afternoon.
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Boy, those Repugs have got balls
Harry