Gillespie Will Join Law Firm With Heavy Insurance Practice

Former Insurance Commissioner Roxani Gillespie said Wednesday she will become a partner on June 1 of the Los Angeles law firm of Buchalter, Nemur, Fields and Younger--a major litigator for insurance companies.

Although it has a general business practice, the 190-lawyer Buchalter, Nemur firm is one of the biggest insurance practitioners in the state, representing such companies as Farmers and the American International Group, including its important subsidiary, National Union.

But, in accord with state conflict of interest laws and the policies of the firm, Gillespie will not handle any matters connected with Proposition 103, the insurance reform initiative she was responsible for implementing as insurance commissioner for more than two years.

Gillespie, 50, a Republican Deukmejian Administration appointee who served as commissioner from 1986 through 1990, said she would work on “corporate and insurance” matters, primarily from the firm’s San Francisco office.

Leonard Venger, a member of the firm’s board of directors, said: “We are delighted to have her joining us as a shareholder and we think she will add a great deal to our insurance regulatory practice, not only in California but throughout the country.

“She is, under California law, not allowed to participate in any way in Proposition 103 proceedings,” he added. “She will be screened at the firm from anything to do with Proposition 103, anything she was dealing with as commissioner. We will not discuss it with her at the firm, and all our 103 files are actually locked up, so she would not have access.”

The explicit statement appeared to reflect a sensitivity to controversy that marked Gillespie’s stay in the commissioner’s office, where she was criticized by consumer advocates as too pro-industry.

Strongly opposing Gillespie’s move to an insurance legal practice was Harvey Rosenfield, the author of Proposition 103, who said: “It is hardly surprising that she will now be getting paid for representing the industry when she was representing the industry for two years as commissioner.”

On Dec. 4, 1989, announcing that she would not seek election as insurance commissioner, Gillespie stated, “I have also decided not to seek employment in the insurance industry when my term in office expires.”

Wednesday, she emphasized that Buchalter, Nemur “is a very diversified firm. It deals a lot with financial services, corporate affairs, bankruptcy and entertainment.” But, she added, “My specialty will continue to be corporate and insurance.”

Gillespie’s tenure as commissioner ended with an angry behind-the-scenes controversy in the State Bar’s Commission on Judicial Nominees Evaluation after then-Gov. George Deukmejian submitted her name as a possible Superior Court nominee.

The proposed nomination was dropped amid reports that the commission had rated her unqualified, although the commission made no public announcement.

Gillespie has a law degree from Boston College.