You searched for:

balducci

Blawg Review #220

by Walter Olson on July 13, 2009

Welcome to Blawg Review #220, rounding up some highlights of the past week from around the legal blogosphere. It’s my second time hosting it here at Overlawyered, a blog that as its name implies maintains a certain critical distance from many of the doings of the legal profession. Despite (or because of?) that, lawyers make up a large share of our most loyal and valued readers. Overlawyered just celebrated its tenth anniversary, which so far as I know (though someone may come along to prove me wrong) makes it the oldest blog about law.

In addition to being a blogger, I’m an author of books (The Litigation Explosion, The Excuse Factory, The Rule of Lawyers) as well as many articles and shorter pieces, and a senior fellow at the Manhattan Institute, the think tank in New York City. Joining me in occasional posts is American Enterprise Institute resident fellow Ted Frank (who’s just launched a promising new venture called the Center for Class Action Fairness; his objection in a Bluetooth class action settlement won coverage in the NLJ on Friday) and even more occasionally by David Nieporent. Ted contributes a portion of this Blawg Review which is indented below.

Torts, Liability and Trial Practice

The week’s most widely blogged story, well documented by Above the Law, is a South Florida lawyer’s “Motion to Compel Defense Counsel To Wear Appropriate Shoes” at a personal injury trial, from fear that his opponent would employ a certain pair of hole-worn loafers to practice the arts of aw-shucksery on the jury. A mistrial resulted after press coverage of the motion came to the attention of jurors.

In other news, the Wall Street Journal law blog reported on the New York Yankees’ settlement with a fan who sued over not being allowed to get up and move about during the performance of “God Bless America”. Kevin Underhill at Lowering the Bar has the story of a Pomona juror who was really eager for deliberations to finish up so he could attend the Michael Jackson memorial, and wonders if the case was resolved unusually speedily that day.

On the plaintiff’s side, Steve Gursten of Michigan Auto Lawyers charges that the city of Detroit discourages the issuance of traffic tickets to its bus drivers as one way of dodging liability in subsequent accident cases where the driver’s record of violations could be used against the city. John Hochfelder at New York Injury Cases Blog says a lawsuit against the city subway system on behalf of a grossly drunk patron who tried to board between train cars is the sort of action that brings litigation into public disapprobation and might even fuel interest in relatively far-reaching reforms, like loser-pays. And Tennessee’s John Day catches a noteworthy automotive preemption case: “The Supreme Court of Appeals of West Virginia has ruled that a products liability claim was preempted by FMVSS 205, a safety standard that it says permits vehicle manufacturers to make a choice between tempered glass and laminated glass in side windows. … The United States Court of Appeals for the Fifth Circuit reached the opposite result in O’Hara v. General Motors Corp., 508 F.3d 753 (5th Cir. 2007).”

At Citizen Media Law, Andrew Moshirnia reports on a defamation lawsuit filed by a northern Illinois newspaper against a blogger: “That’s right, a newspaper (the Jeffersonian protectors of democracy) and a blogger (saving the world one lolcat at a time) are duking it out, each trying to out chill the other’s speech.”

The defense-side post of the week comes from the Beck & Herrmann team at Drug & Device Law. Mark Herrmann takes a big-picture look at how pharmaceutical product liability law has evolved over the past quarter century, and in particular how well it has done in pursuing the goal of appropriately screening out meritless cases. He gives the law a grade of “A” or thereabouts in tackling dubious expert testimony (with the Daubert revolution), in preventing the unwarranted extension of class action concepts from financial-injury cases to the realm of personal injury, and — a much newer development — in introducing serious scrutiny of claims at the pleading stage through the Supreme Court’s recent Twombly and Iqbal decisions. He is also relatively pleased with trends on preemption (despite the widespread view that defendants have suffered a decisive rebuke on that front) and on resistance to novel theories of action. On the other hand, he gives the courts a “D” on their handling of discovery and its burdens, and a grade of “F” when it comes to their overall inability to reduce the amount of litigation.

Emergency room doc/blogger White Coat has been serializing a first-person account of his malpractice trial; you can read parts eleven and twelve, bearing in mind that you’re coming in partway through the story. (The trial has concluded, but he’s not yet revealing how it ended.)

Stephanie West Allen at Idealawg, picking up on a discussion in Plaintiff magazine, says to watch out for how the other side is likely to retell your story: that way you won’t be surprised when the other side’s lawyer gets up at trial to claim the wolf was framed while portraying the scarlet-clad Miss Hood as the most heartless femme fatale since Barbara Stanwyck in Double Indemnity. And if you’re headed for alternative dispute resolution, Nancy Hudgins can tell you “A secret about mediators“.

In the News

Alas, in today’s wounded economy bankruptcy law is a standout practice area. In the case of General Motors, however, the process has gone far more quickly than most expected. John Wallbillich at Wired GC reflects on the giant automaker’s egg-timer reorganization: “The joke around Detroit is that GM went through bankruptcy in less time than it took outsiders pre-filing to get a response to voicemails and schedule a meeting.” On the consumer side, BankruptcyProf Blog (via Carolyn Elefant, Legal Blog Watch) reports that bankruptcy filings in the Central District of California have risen sharply over the year, up more than fifty percent from 5,999 in January to 9,578 in June. The year-over-year increase since the first half of 2008 is 45 percent.

Disgraced lawyer Marc Dreier is due to be sentenced this week for some of the worst defalcations laid to the account of an American lawyer in many a year; Peter Henning has commentary at the WSJ Law Blog. At a newly launched blog called Unsilent Partners, two well-known figures in the blogosphere, Colin Samuels of Infamy and Praise and Mike Semple Pigott of Charon QC, discuss recent white-collar criminal sentencing, the point of departure being federal judge Denny Chin’s sentencing of Bernard Madoff to a 150-year term.

The week’s biggest upcoming legal story is likely to be the confirmation hearing of Supreme Court nominee Sonia Sotomayor, and I’ll turn the floor over to colleague Ted Frank for some remarks on that:

The Sotomayor nomination continued to be a notable topic in the legal blogosphere this week. Jennifer Rubin noted that former Secretary of State Colin Powell, sharing Judge Sotomayor’s position favoring race-based preferences, had thrown his support behind her nomination. Meanwhile, Eric Turkewitz’s previous investigation of the judge’s “Sotomayor and Associates” law practice and the ethical implications of her choice of firm name was picked up by the New York Times, albeit (as he and Scott Greenfield both noted) without any recognition of Turkewitz’ key role in bringing this issue to light. Greenfield criticized the Times: “make no mistake about it. [Turkewitz] is the source of the New York Times story, and the absence of his name, and his blawg, in the piece is a shoddy reflection of its journalistic integrity. Don’t ask the blawgosphere to love you when you won’t love us back, boys.” But Windy Pundit defended the Times. Turkewitz found the Administration’s explanations and justifications of Sotomayor’s choice to be unpersuasive; some members of the Senate Judiciary Committee may as well, and they’ve been in contact with Turkewitz. Beldar’s reaction to the Associates flap: Meh. The WSJ Law Blog looks at the “meticulousness” characterization of Sotomayor. Stuart Taylor has a must-read blog post on how the Sotomayor panel almost succeeded in burying the Ricci case through its summary order; having failed to bury the case, Sotomayor’s supporters are making personal attacks on Ricci, who will be testifying at Sotomayor’s hearing, himself. Heather Mac Donald calls for tough questioning of Sotomayor about Ricci. If you plan on attending the hearing, watch what you wear. The Federalist Society is sponsoring an on-line debate on the nomination that includes lawyer-bloggers Tom Goldstein and Ed Whelan. And Jonathan Adler asks questions about that 1100-professor-petition in favor of Sotomayor’s nomination.

The D.C. Circuit ruled that police checkpoints in Washington, D.C., along “State Your Business, Citizen” lines, violate the Fourth Amendment. Ken at Popehat is glad. More: Volokh, Greenfield.

Allegations of egregious racial discrimination at the swimming pool of a northeast Philadelphia club are making news and seem likely to break out before long as a national story. Max Kennerly of The Beasley Firm tells the story and analyzes its legal implications here and here, while Jon Hyman recalls memories of growing up near the club.

Finally, the Scruggs judicial scandals may have faded from the national headlines in the past year but in Mississippi they’re still very much an unfolding story. Tom Freeland at North Mississippi Commentor continues to track developments.

Advice for clients

Week in and week out, one of the functions legal blogs fulfill is to advise clients and prospective clients on when to use lawyers and what to expect when using them. Thus Hingham-based Danielle Van Ess explains what estate planning does and who needs it at her blog on Massachusetts wills, trusts and estates law. At South Carolina Family Law, Ben Stevens offers a list of Facebook “don’ts” for divorcing couples, which might usefully be read in conjunction with Lawyerist’s advice on how to subpoena Facebook pages. Of course cutting through the hype is important, which is why potential clients susceptible to being impressed by “Super-Duper-Lawyer” awards and commendations might want to check out Brian Tannebaum’s amusing discovery that “in Gainesville, Florida, apparently two Super criminal defense lawyers are prosecutors”. Whoops!

Employment law

Perhaps the week’s most buzzed-about employment law case came from Hartford where veteran political reporter Shelly Sindland filed a sex and age bias complaint against Tribune Co.’s Fox 61, charging that execs at the TV station rewarded female on-air talent on the basis of bodily attractiveness rather than conventional journalistic criteria. Daniel Schwartz at his Connecticut employment law blog took a relatively sober look (and followup), but given its mature content this was a story destined to wind up at Above the Law, which gave it the full treatment.

Employees’ sometimes-imprudent talk both on the job and off continues to provide steady fodder for employment law decisions and controversies. Doug Cornelius discussed a New Jersey decision on whether and when an employer can read an employee’s email to her lawyer sent from a company-owned laptop. At Employee Rights Post, Ellen Simon discussed a recent Ninth Circuit case in which a school employee got in trouble for inflammatory online remarks. And Jon Hyman at Ohio Employer’s Law wonders how employers are supposed to avoid what has been called a “sexualized work environment” offensive to some employees when the popular culture seeping in to the workplace from all sides is often itself highly sexualized, a topic that has come up in these columns as well.

Commercial, business and tax law

Unincorporated Business Law Blog brings word of a bill being introduced by Sen. Carl Levin (D-Mich.) to crack down on state-incorporated “shell” corporations. Corporate law specialist Larry Ribstein of the University of Illinois writes, “The motivation for this piece of legislative detritus seems to be that since a tiny percentage of LLCs are being used for criminal activity let’s wreck LLCs for all firms. Hey, sounds sensible to me.”

In other news, Peter Pappas awarded his “Rick Moranis Awards” for the best tax nerd blogs. Kevin LaCroix at D & O Diary has an update on the rising tide of Foreign Corrupt Practices Act (FCPA) enforcement activity. Charon QC conveys a bit of gossip about the questionable contract terms prescribed by a well-known U.K.-based real estate firm. And Ken Adams at Adams Drafting advises that if contract-drafting seems like a boring and unrewarding part of your work day, you’re probably not doing it right.

Finally, this unsettling observation from Dan Harris at China Law Blog: “If you owe money to a Chinese company for product and you cannot pay all of your creditors, skip out on the Chinese company. Near as I can tell, there is nearly a 100% chance they will never sue you to recover.”

Intellectual property law

The Pope issued an encyclical earlier this month which, notes Cal Law Legal Pad, included the following statement: “On the part of rich countries there is excessive zeal for protecting knowledge through an unduly rigid assertion of the right to intellectual property, especially in the field of health care.” If the pontiff wasn’t upset by the story of the Mexican yellow bean patent recounted by Patently-O, it’s probably because he hadn’t heard of it. Speaking of moral authority, The Prior Art takes GOOD magazine to task for according a glowing profile to a systematic asserter of patent license rights whom some might belittle as Totally Reliant On Litigation Leverage, and suggests the magazine missed a chance to evaluate the gap between what might be remunerative legal-business strategy and what is beneficial to society. For a more upbeat view of the value of patents in spurring innovation since colonial days, Gary Odom at Patent Hawk offers a short history of patents in America.

Finally, I blogged last week about the lawsuit filed by Pez against a Pez museum that some fans had set up in California’s San Mateo County, but Ron Coleman at Likelihood of Confusion was funnier about it.

Legal issues of new media

Remember the unsuccessful suits by companies upset to discover that when Google users searched on their firm’s name, AdWords would serve them an ad for some competitor? Ryan Gile at Vegas Trademark Attorney thinks Mary Kay Cosmetics faces an “uphill battle” in a new suit against Yahoo (over mouseover search popups in email) that raises some similar issues. And Venkat Balasubramani raises the question whether Twitter has been lax, or clever, or both, in letting various other entities use Twitter-related words and phrases in their own names and promotions.

At gamelaw blog Law of the Level, Shawn Foust discussed how online games can protect the integrity of their online currencies from thefts, at least until a corps of “Space Prosecutors” can be formed. And Eugene Volokh brings news from Michigan of one of the first, if not the first, libel lawsuits arising from Wikipedia edits. It seems to raise garden-variety rather than novel issues, though, and is not filed against Wikipedia itself.

Family law

In the U.K., Justice Minister Jack Straw has announced a second round of family-court reforms. Lucy Reed at Pink Tape is anything but enthusiastic about some of the “de-lawyerizing” aspects of the proposals. John Bolch at Family Lore comments as well, and separately notes “that Conservative think tank the Centre for Social Justice will recommend that there be a compulsory three-month ‘cooling off’ period before divorce proceedings can be commenced, one of a number of proposals contained in a report Every Family Matters, to be published [July 13].” Presumably coincidentally, here in the U.S., Solangel Maldonado at Concurring Opinions considers whether current divorce laws unduly steer couples toward ending marriages rather than working through difficulties: “Given society’s interest in marriage and all of the negative consequences of divorce, should law incentivize couples to repair the marriage after infidelity? … many couples do reconcile after separation. Maybe they would not have done so had they been able to seek a divorce immediately.”

“Father Shall Not Use Profanity or Racial Epithets in the Boys’ Presence or Within Their Earshot”. Eugene Volokh wonders about the free speech implications.

Law schools

It being July, law schools are relatively quiet on the student front, but certainly not on the faculty front. Hackles have been rising over the NYU law school’s selection of Li-Ann Thio for a visiting spot in human rights law, given that in her native Singapore Thio crusaded against rights for gays. [Above the Law]. Jane Genova at Law and More covers a judge’s threatened sanctions against Harvard lawprof Charles Nesson for posting deposition excerpts online from a case in progress in which he is helping defend music downloaders. And although Ave Maria Law School is not a part of the Roman Catholic Church, it is asserting church autonomy as a defense to a suit filed by several former faculty members; Howard Wasserman at Prawfsblawg and Rick Garnett at Mirror of Justice discuss.

Many would have nominated law schools as a nearly recession-proof sector of the economy, but that’s turned out to be wrong, what with bleak prospects for many new graduates and sometimes plunging endowments at parent institutions. Famed UCLA lawprof Stephen Bainbridge asks “Is Law a Mature Industry?” and examines the implications for legal education (do we really need at least ten new law schools, as are on the drawing board now?), while the Canadian site Law21.ca wonders whether the demographics of an aging world mean that we can “say goodbye to a lot of law schools“.

State of the blawgosphere

There’s nothing like a discussion of the state of blogs to get people going. At Crime and Federalism, Mike Cernovich thinks legal blogs have gone downhill since he got online: things have grown cliquish, and the “biggest – and worst – change to the legal blogosphere has been the Rise of the Marketers,” the ones who are intent on promoting their firms and practices but don’t have anything in particular to say. If bloggers get cliquish, notes Robert Ambrogi, it’s only human nature: “With too many blogs to choose from, we tend to stick with those we know and find comfort with.”

Have you ever considered turning the best bits of your blog into a book? Join the club. Evan Schaeffer at Legal Underground shows how to make a convincing case for that kind of transformation.

Finally, if you’re looking for an old-fashioned blogger dustup complete with asperity and risk of hurt feelings, Scott Greenfield is feeling snappish toward Adrian Dayton and several others on a variety of topics that include Generation Y, social media and work/life balance (Greenfield’s basically against the latter: “When the going gets tough, no one needs a lawyer who leaves the office whenever they have something more fun to do.”) Diane Levin suggests room for accommodation, which however is not forthcoming.

Need a break from contentiousness? Check out Scott Kreppein’s pictures of the Bronx County courthouse, a building that boasts marmoreal, heroic bas-relief sculptures in what I believe is the early-FDR-period style referred to as “Greco-Deco“.

International

For a view of American law from Central and Eastern Europe, Bruce MacEwen at Adam Smith Esq. interviews Tomasz Wardynski of a large Warsaw law firm. At Arbitration Forum, Kenneth Cloke tells “Why We Need to Mediate [International] Environmental Conflicts“. Cynthia Alkon at ADR Prof brings word that the Truth and Reconciliation Commission (TRC) in the African nation of Liberia released its report this week. Chris Borgen at Opinio Juris reports on the possible disintegration of Belgium (Flanders is thinking of pulling out). Is the EU actually going to hasten the breakup of some of its ethnically diverse member states? Charon QC decides to find out how easy it is to pry information out of private British law schools. And proving that the U.S. is not always in the forefront of colorful litigation, a Polish mother has sued saying that her 13-year-old daughter came back pregnant from an Egyptian resort because of, er, male-related contamination of the hotel’s swimming pool. Michael Krauss has the story at the Manhattan Institute law blog Point of Law (disclosure: I’m its editor and also blog there).

Many thanks to Colin Samuels and Victoria Pynchon for their helpful suggestions on links to use. H. Scott Leviant will be hosting Blawg Review #221 at The Complex Litigator next week. Blawg Review has information about that, and instructions how to get your blawg posts reviewed in upcoming issues. [Edited 1 pm Monday to remove one link at the request of its site]

{ 12 comments }

February 18 roundup

by Walter Olson on February 18, 2009

  • Golfer’s ball bounces off yardage marker and hits him in eye, and he sues; not the Florida case we blogged last month, this one took place in New Hampshire [Manchester Union-Leader]
  • Who needs democracy, much easier just to let the Litigation Lobby run things: elected Illinois lawmakers keep enacting limits on med-mal awards, but trial-lawyer-friendly Illinois Supreme Court keeps striking them down, third round pending at the moment [Peoria Journal-Star, Alton Telegraph, Illinois Times, Reality Medicine (ISMS)]
  • “A sword-wielding, parent-killing psychopath can be such a help around the house.” [we have funny commenters]
  • Brooklyn lawyer Steven Rondos, charged with particularly horrendous looting of incapacitated clients’ estates [earlier], said to have served the New York State Bar Association “as vice president of its guardianship committee” [NYPost]
  • Updated annals of public employee tenure: Connecticut state lawyer who assumed bogus identity to write letter that got her boss fired drew a $1000 fine as well as a reprimand — and then got a raise [Jon Lender/Hartford Courant and more, earlier here and here]
  • Judge Bobby DeLaughter indicted and arraigned as new chapter of Dickie Scruggs judicial-corruption story gets under way in Mississippi; Tim Balducci and Steve Patterson, central figures in Scruggs I, each draw 2-year sentences [NMC/Folo and more, more, YallPolitics, more, earlier on Balducci, DeLaughter]
  • Disney “Tower of Terror” ride not therapeutic for all patrons: British woman sues saying she suffered heart attack and stroke after riding it several times [AP]
  • Convicted of torching his farm, Manitoba man sues his insurance company for not making good on policy [five years ago on Overlawyered]

{ 4 comments }

February 8 roundup

by Walter Olson on February 8, 2009

  • There’s money in lost personal data: “Counsel Could Rake in $5 Million from Veterans Settlement” [Weissmann/BLT]
  • Commentaries on now-settled GateHouse v. NYTimes lawsuit (news organization grabs/aggregates rival’s reports) [Ardia and Lindenberger, Citizen Media Law; Nieman Journalism Lab]
  • Funny and instantly recognizable: cop talk converted to human talk [Legal Antics]
  • No need to worry about revival of Fairness Doctrine, they told us — uh-oh, here comes talk radio “accountability” [Patterico]
  • Lenders whipped up one side of the street for too-easy credit standards, then down the other for tightening them [McArdle]
  • Murder convictions for drunk drivers? Not so fast, a New York appeals court decision suggests [Greenfield]
  • When no one writes a leniency letter at your sentencing, maybe problem is not so much that you’re a crooked lawyer as that you’re a powerless lawyer [YallPolitics on Tim Balducci, Mississippi]
  • If lawyers strike everyone who’s griped about jury duty on Facebook “we’re going to run out of jurors really fast” [Anne Reed]

{ 1 comment }

Scruggs in guilty plea

by Walter Olson on March 14, 2008

The WSJ and Mississippi’s WLOX have the news up on Dickie Scruggs’ plea of guilty to conspiracy in the attempted bribe of Judge Henry Lackey. Earlier today, the Journal had an illuminating page-one feature on Dickie Scruggs’s history of fee disputes with other lawyers. YallPolitics‘ server seems to be down at the moment from traffic, but is back up now; in an email alert, YP’s Alan Lange said the surprise plea came three days before the deadline for Scruggs to plead before his approaching trial. Our past coverage is here, or check our Scandals page.

Update 12:18 EST: AP coverage is here (via Rossmiller). Sid Backstrom also pleaded and, per Folo rapid updates, is cooperating with prosecutors. No deal for Zach Scruggs yet. Also per Folo, Scruggs pleaded to conspiracy in the Lackey bribe attempt but did not resolve possible charges in the DeLaughter case, per the government side.

12:44: Now Folo’s server has crashed. Temporary replacement site up here.

1:16: Per Patsy Brumfield at the NEMDJ:

…The government recommended a sentence of five years in prison for Scruggs and 2 1/2 years for Backstrom. They also will pay a maximum fine of $250,000 each and a court fee. …

Before Biggers accepted their pleas, Scruggs and Backstrom admitted in open court that they had done what the government said they had done in Count One – they had conspired to bribe Circuit Judge Henry Lackey of Calhoun City for a favorable order in a Katrina-related legal fees case….

Dickie Scruggs, arguably the most famous plaintiffs’ attorney in the U.S., looked pale and thin but carried himself with a bit more control than his younger colleague at The Scruggs Law Firm, headquartered on the storied Square in Oxford.

The 61-year-old Ole Miss Law School grad and legal giant-killer, as well as Backstrom, likely will voluntarily surrender their law licenses, as has co-defendant Timothy Balducci of New Albany, who pleaded guilty in December although he was wired and cooperating with the government at least a month earlier.

“Do you fully understand what is happening here today,” Biggers asked him.

“Yes, I do,” Scruggs responded.

Questioned about whether he had discussed his decision to plead guilty with his attorney, Scruggs responded, “With my attorney, my wife and my family.”

1:25 p.m.: Rossmiller has an update from a correspondent at the scene. And Folo is up at a temporary site until its server gets back online. Excerpts from Folo’s on-the-scene report:

…* Richard Scruggs is pleading to conspiracy to bribe a state court judge, count 1 of the indictment, with other counts to be dismissed. This was an open plea, that is, no recommended sentence.

* The government expects that he will get the full five year sentence on that count. …

* There was no mention of cooperation by Scruggs. …

* There was an interesting and unusual disagreement with the government’s statement of facts in the plea colloquy. The government stated in its facts for both Backstrom and Scruggs that a conspiracy began in March to corruptly influence the state court judge, and Scruggs spoke to say that he had agreed to earwig the judge but not corruptly influence him in March, and that he later agreed to join a conspiracy to corruptly influence the judge. Sid Backstrom took a similar stance….

[See also WSJ law blog and later NMC post, as well as WikiScruggs on "earwigging" as a Mississippi tradition.]

1:56: Welcome Glenn Reynolds/Instapundit and David Rossmiller/Insurance Coverage Blog readers.

3:18: The Jackson Clarion-Ledger reports: “As part of the plea deal, federal prosecutors agreed to defer prosecution of Scruggs’ son, Zach Scruggs, who agreed to give up his license to practice law.” [N.B.: NMC @ Folo has a very different take, and other sites are also questioning the C-L's reporting on this point.] Folo at its temporary bivouac has PDFs of the Scruggs and Backstrom pleas and underlying facts, as does David Rossmiller. ABA Journal coverage includes the text of a forthcoming article by Terry Carter on the affair, written pre-plea. Other reactions: Above the Law (”has Scruggs employed bribery as a tactic in other matters — e.g., the tobacco cases that made him famous …?”), Beck and Herrmann (”What a week. First Spitzer, and now Scruggs. What goes around, comes around.”), TalkLeft, Michelle Malkin, NAM Shop Floor (”So what are the odds that this was Dickie Scruggs’ first and only crime during his decades-long career as a trial lawyer?”).

6:27: Roger Parloff wonders whether Scruggs will cooperate, and whether the statute of limitations might have run already on tobacco skullduggery. NMC @ Folo wonders what prosecutors will make of a slew of fresh documents from the Scruggs Law Firm, or whether perhaps such documents have already had an effect. Not so surprising a plea, says Jane Genova at Law and More, but rather “widely expected“.

{ 7 comments }

Some developments of the past ten days or so:

* In major blow to defense, Judge Biggers denies motions to suppress wiretap evidence and evidence of similar bad acts [Rossmiller]

* Balducci says he and Patterson got $500K from Scruggs to influence AG Hood to drop indictment of State Farm, motive being to advance civil settlement [Folo]

* WSJ gets into the act with some highlights of wiretap transcripts [edit page; earlier here]

* Sen. Trent Lott says he’s a witness, not a target, of federal investigation [Anita Lee, Biloxi Sun-Herald]

* Scruggs off the hook on Alabama criminal contempt charge [WSJ law blog, Rossmiller, Folo]

* “Mr. Blake has served for many years as a conduit and a layer of separation, if you will, between Mr. Scruggs and other people on sensitive issues.” (Balducci transcript highlights, Folo; more)

* In effort to get Zack Scruggs indictment dismissed, his lawyers dwell on switch from “y’all” to “you” as implying shift in persons addressed from plural to singular [Folo first, second; Rossmiller first, second; on a "sweet potatoes" point, NMC @ Folo and sequel; also]

* DeLaughter/Peters branch of scandal reaches deep into Jackson legal community [Adam Lynch, Jackson Free Press]

* Article in new American Lawyer notes that Scruggs’s ambitious suits have lately hit a big losing streak, notably those against HMOs, nonprofit hospitals and Lehman Brothers [Susan Beck]. And Lotus catches an interestingly lawyerly wording on John Keker’s part [Folo]

* I’m quoted and this site is discussed in an article on blog coverage of the case; my lack of clarity as an interviewee probably accounts for Scruggs being said to have addressed audiences at the Manhattan Institute “a few” times, when if memory serves the correct reference is “twice”. [Patsy Brumfield, Northeast Mississippi Daily Journal (Tupelo) @ Folo]

* For more background see our Scandals page; also YallPolitics.

Big news day in the Scruggs scandals: a judge has turned down defense motions to throw out the charges and to suppress the evidence, a hearing on those motions has showcased the testimony of government informant Tim Balducci, and the government in responding to the motions has released extensive and often quite damning transcripts of the wiretap conversations among the principals. Folo as usual provides the most in-depth coverage, with posts on the judge’s rulings here and here, on the hearing and Balducci’s testimony here and in numerous preceding posts, and on the wiretap transcripts here and in numerous preceding posts. David Rossmiller is on the judge’s ruling here, and on the hearing and transcripts here. More: Patsy Brumfield, NEMDJ, was at the courthouse.

Picking through the rich contents of the transcripts and Balducci’s testimony is going to keep Scruggsians busy for a good long time. In the meanwhile, some odds and ends:

* Want to review all the major events of the central alleged bribery case, skillfully narrated in chronological sequence? Of course you do. Folo’s NMC has it in six parts beginning here and ending here (follow links to find those in between).

* John Grisham’s “Too Dumb for Dickie” theory encounters some serious strain [Rossmiller and again]

* Mississippi legislature won’t give AG Jim Hood authority to wiretap his enemies suspected white-collar criminals. Gee, wonder why that might be? [WLBT via Lange] Plus: description of Hood as a Pez dispenser coughing out multi-million-dollar cases for his chums [Rossmiller]

* More unpretty details surface on Scruggs’s (and other lawyers) use of informants in Katrina litigation [Rossmiller] and tobacco [Lange]

* More Hood: prosecuting the accused judge-bribers “would be like prosecuting a relative” [Salter, Clarion-Ledger, Rossmiller, Folo]. Give back tainted money? “That’s up to DAGA [Democratic Attorneys General Association]” [Lange]

* Former Louisiana attorney general Richard Ieyoub gets a mention, as does Sen. Trent Lott [Folo, same] Update: feds investigating what Sen. Lott knew [WSJ]

* Small world, Mississippi: member of arbitration panel that awarded Scruggs huge fees was later hired by the tort potentate for legal work [Lange]

* Blogosphere has been a major source for breaking news on the scandal [LegalNewsLine]

* Liberal columnist Bill Minor recalls when a certain Sen. McCain let Dickie Scruggs and Mike Moore run their tobacco lobbying campaign out of his Hill office [NEMDJ via Folo; more at PBS "Frontline" and NY Times]

{ 1 comment }

The beleaguered tort tycoon is now seeking to have the federal indictment dismissed on grounds of “outrageous government misconduct”. Roger Parloff at Fortune Legal Pad explains how Scruggs’s attorneys are evoking the atmospherics of an entrapment defense without actually going quite so far as to assert that defense, which would mean (among other things) opening the door for prosecutors to introduce evidence of other similar but uncharged bad acts by Scruggs (Feb. 12). See also White Collar Crime Prof and NMC at Folo. And the Scruggs camp’s motions to suppress wiretap evidence has resulted in the release of a slew of transcripts of taped conversations among the principals, often sliced and excerpted in nonobvious ways, highlights of which appear at Folo here (”you need it pretty soon?”), here (Tim Balducci: “you always gotta have a slush fund” and “This ain’t my first rodeo with Scruggs”), here (P.L. Blake told by Patterson of “pretty good problem that I had solved”; see also Yall) and here (appearing to omit Balducci’s famous “bodies buried” line). For those sorting out Balducci’s colorful figures of speech relating to food, by the way, his reference to “bushels of sweet potatoes” that he needs to get “where I can get em . . . uh . . . over to him” is explained at the WSJ law blog here, while his expressed wish to “lay the corn on the ground” for Judge Lackey is here at Folo. More: Alan Lange, YallPolitics.

{ 2 comments }

It will evidently involve trying to get wiretap recordings excluded and seizing on a few of the (many, wandering and seemingly inconsistent) things that informant Tim Balducci said in conversation with Judge Lackey, some of which can be read as portraying Scruggs as out of the bribery loop — though such remarks can be read as simply reflecting the wish of a then conspirator to protect Mr. Scruggs’ plausible deniability, and although other remarks of Balducci’s point in the opposite direction. Coverage: Michael Kunzelman, AP/Biloxi Sun-Herald, Jan. 16; Anita Lee, “Attorney says Scruggs had no knowledge of Balducci’s attempted bribe; trial delayed”, Biloxi Sun-Herald, Jan. 16; Rossmiller, Jan. 16; Folo multiple guest posts). Update: David Rossmiller now has a more substantial post up analyzing the defense (Jan. 17).

The prosecution, for its part, on Tuesday unsealed some explosive new contentions in the case, alleging that mystery figure P.L. Blake, whose role in the disposition of tobacco settlement money has already been the subject of much discussion, was also a behind-the-scenes player in the attempted Lackey bribe. “In a Sept. 28 telephone call secretly tape-recorded by the government, [Steven] Patterson told Balducci his wife had just gotten off the phone with Blake, who had met with Scruggs, [Assistant U.S. Attorney Bob] Norman said.” (Jerry Mitchell, Jackson Clarion-Ledger, Jan. 16).

As a number of commentators have noted (e.g. Brett Kittredge @ Majority in Mississippi, Alan Lange @ YallPolitics), Booneville attorney Joey Langston, who just entered a guilty plea on charges of judicial corruption, is someone accustomed to throwing the weight of his pocketbook around in Mississippi politics. In particular, he has been among the biggest donors to incumbent Mississippi attorney general Jim Hood, even as Hood employed Langston and partner Tim Balducci on contract to handle the controversial MCI tax bill negotiations, with their resulting $14 million legal fees payable to Langston et al, and the potentially very lucrative Zyprexa litigation.

Equally interesting in some ways, however, are Langston’s activities on the national political scene. To take just one example: this CampaignMoney.com listing tabulates the top “527″ contributions to a group called the Democratic Attorneys General Association, whose political and electoral mission is implied by its name. In the listing, two donors are tied for first place, with contributions of $100,000 apiece. One is the large Cincinnati law firm of Waite Schneider Bayless Chesley, associated with one of the country’s best-known plaintiff’s lawyers, Stanley Chesley. The other $100,000 contribution is from Joey Langston.

In presidential politics, Langston has recently been a repeat donor to the quixotic (and, since Iowa, defunct) campaign of Sen. Joseph Biden (D-Del.), a lawmaker whose high degree of seniority on the Senate Judiciary Committee makes him important to ambitious lawyers whether or not he ever attains the White House. When the Scruggs scandal was still in its early stages, the WSJ law blog (Dec. 10) noted that two key figures in the affair, Tim Balducci and Steve Patterson, were strong backers of the Biden campaign: “Their bet on Biden was that he wouldn’t win the presidency but would become Secretary of State under a Hillary Clinton administration, according to two people familiar with their thinking.” The Journal reprinted (PDF) an invitation to an Aug. 10, 2007 fundraising reception for Biden at the Oxford (Miss.) University Club, sent out above the names of six hosts, three of whom (Scruggs, Balducci and Patterson) were soon indicted. Scruggs, of course, is better known for his support of Mrs. Clinton, a fundraiser for whom he had to cancel after the scandal broke.

Campaign-contributions databases such as OpenSecrets.org and NewsMeat indicate that Langston has been a prolific and generous donor to incumbent and aspiring Senators across the country, mostly Democrats (Murray, Cantwell, Daschle, Nelson, etc.) but also including a number of Republicans who might be perceived as swing votes or reachable, such as Sen. Lindsey Graham (S.C.), Susan Collins (Me.), and Arlen Specter (Penn.)

Incidentally, some critics have intimated that Langston’s generous support to DAGA, the Democratic Attorneys General Association, should actually be interpreted as a roundabout gift to Hood, who was the beneficiary of interestingly timed largesse from DAGA. It does not appear, however, that any of the parties involved — Langston, Hood or DAGA — have acknowledged any connection between the timing of the donations (& welcome Michelle Malkin, David Rossmiller, YallPolitics readers).

[Second of a two-part post. The first part is here.]

{ 4 comments }

Yesterday’s guilty plea by Booneville, Miss. attorney Joseph (”Joey”) Langston in the attempted improper influencing of a Mississippi state judge would be major news even if it had nothing to do with the state’s most famous attorney, Richard (”Dickie”) Scruggs. That’s because Langston and his Langston Law Firm have themselves for years been important players on the national mass tort scene. The firm’s own website, along with search engines, can furnish some details:

  • Per the firm’s website, it has represented thousands of persons claiming injury from pharmaceuticals, including fen-phen (Pondimin/Redux), Baycol, Rezulin, Lotronex, Propulsid and Vioxx. It was heavily involved in the actions against Bausch & Lomb over ReNu contact lens solution (and its former #2 Timothy Balducci, the first to plead in the widening round of corruption scandals, won appointment to the steering committee of that litigation.)
  • The Langston firm has represented thousands of asbestos claimants and says it has “significant” experience in the emerging field of manganese welding-rod litigation, also a specialty of the Scruggs law firm. The website AsbestosCrisis.com includes the Langston law firm in its listing of about thirty law firms deemed notable players on the plaintiff’s side of asbestos litigation (”Tiny firm founded by Joe Ray Langston powerhouse in Mississippi with 50-year roots in state political circles.”)
  • Langston appeared to play a sensitive insider role for Scruggs in the largest and most lucrative legal settlement in history, the tobacco-Medicaid deal between state attorneys general and cigarette companies, the ethical squalor of which was a central topic of my 2003 book The Rule of Lawyers; as mentioned previously, when Dickie Scruggs routed mysterious and extremely large tobacco payments to P.L. Blake, he used attorney Langston as intermediary.
  • Langston has repeatedly taken a high profile in the same fields of litigation as has Scruggs, including not only suits over asbestos, tobacco and welding rods but also two of Scruggs’s “signature” campaigns, those against HMOs/managed care companies and not-for-profit hospitals.
  • Though the firm is better known for its plaintiff’s-side work, the Langston firm’s “national practice” page asserts: “The Langston Law Firm virtually defined the role of ‘Resolution Counsel’ in the modern era of jurisprudence. Prominent domestic and foreign companies facing massive litigation have turned to The Langston Law Firm to create winning strategies to save their companies.”

Many commenters (as at David Rossmiller’s) have noted that Langston appears to have drawn an unusually favorable plea deal from federal investigators, who are granting him remarkably broad immunity as to uncharged offenses, and not even stipulating that he give up all ill-gotten funds. Presumably this signals that they expect Langston’s cooperation to be unusually extensive and valuable. One hopes that this cooperation will include the full and frank disclosure of any earlier corruption and misconduct there may have been in all the past litigation in which Langston has been involved. In particular, tobacco, asbestos, and pharmaceutical litigation have all raised suspicions in the past because of instances in which forum-shopping lawyers took lawsuits of national significance to relatively obscure local courts — quite often in Mississippi — and proceeded to get unusually favorable results which paved the way for the changing hands of very large sums in settlement nationally. Were all these results achieved honestly?

Incidentally, and because it may confuse those researching the matter on the web, it should be noted that there is a second prominent Mississippi plaintiff’s lawyer who bears the same surname but has not been involved in the recent Scruggs scandals, that being Joey’s brother Shane Langston, formerly of Jackson-based Langston, Sweet & Freese. Shane Langston, whose name turned up often in connection with the “hot spots” of pharmaceutical litigation of Southwest Mississippi, has more recently been in the news over client complaints regarding alleged mishandling of expenses related to the Kentucky fen-phen litigation scandals. [Family relationship between the two confirmed 1/16 on the strength of emails from several readers.] (& welcome WSJ Law Blog readers)

[First of a two-part post. The second part is here.]

{ 3 comments }

Now we may have a better idea why prominent Booneville, Miss. lawyer Joseph Langston recently withdrew as counsel for Dickie Scruggs in the widening corruption scandal: per a report by Jerry Mitchell in Sunday’s Jackson Clarion-Ledger, Langston was himself nabbed on corruption charges, has pleaded guilty and is cooperating with federal authorities. According to the article, Langston’s guilty plea arose from his involvement in one of Scruggs’s many fee disputes with fellow lawyers, this one being the Luckey-Wilson asbestos fee matter (in which Scruggs’ adversaries were Alwyn Luckey and William Roberts Wilson Jr.) Langston will apparently testify that he worked with both Dickie Scruggs and son Zach in an attempt to improperly influence Circuit Judge Bobby DeLaughter, who issued rulings favorable to Scruggs in the case. In one memorable detail, the C-L reports that federal authorities have obtained a May 29, 2006, e-mail in which “Zach Scruggs told his father’s attorney in the case, John Jones of Jackson, that ‘you could file briefs on a napkin right now and get it granted.’” Judge DeLaughter has denied any impropriety. (Jerry Mitchell, “Another lawyer pleads guilty”, Jan. 13). Separately, Patsy Brumfield of the Northeast Mississippi Daily Journal, who was first with an unconfirmed report of Langston’s guilty plea, also reports from unnamed sources that federal prosecutors have flipped another of the five indictees in the original scandal, Steven Patterson (partner of informant Tim Balducci), and that documents to be unsealed Monday will clarify other aspects of the status of the case. (”First public clue Patterson has pleaded in Scruggs case”, Jan. 11; “Scruggs updates”, Jan. 12). Discussion: Lotus/folo, Jan. 12, Jan. 13.

The implications are enormous. Among them:

* It looks as if informant Balducci, who formerly practiced law in the Langston law firm, wasn’t kidding when he said he knew where there were “bodies buried“. Information from Balducci likely helped lead the feds to raid the Langston office and seize records documenting the alleged Wilson-Luckey conspiracy.

* Langston is no incidental Scruggs sidekick or henchman; he’s quite a big deal in his own right, with a national reputation in mass tort litigation. He’s been deeply involved in pharmaceutical liability litigation, in tobacco litigation, in litigation against HMOs, and in litigation against non-profit hospitals over alleged violations of their charitable charters, among other areas. Mississippi attorney general Jim Hood, the law enforcement officer who has comically been playing potted plant as one after another of his closest political allies have been getting indicted in recent weeks, has employed Langston as lead counsel for the state in both the controversial Eli Lilly Zyprexa litigation and the even more controversial MCI back-tax-bill litigation. Langston also served Scruggs as go-between in the much-discussed funneling of $50 million in tobacco funds to ex-football player P.L. Blake (to whom now-reportedly-flipped Patterson was also close). If the reports that Langston is now cooperating with the feds are accurate, he will presumably be expected to tell what he knows about other episodes. (Langston has also endeavored to provide intellectual leadership for the plaintiff’s bar, as in this Federalist Society panel discussion presentation (PDF) in which he strongly criticizes the work on federalism and state attorneys general of Ted’s AEI colleague Michael Greve).

* Part of Scruggs’s modus operandi, as we know from tobacco and Katrina (among other) episodes, is to arrange to bring down prosecutions and other public enforcement actions on the heads of his litigation opponents. A particularly brutal instance of this crops up in today’s Clarion-Ledger piece, which reports that Scruggs in 2001 took documents obtained in discovery from Wilson, his fee-dispute opponent, and brought them to Hinds County (Jackson) district attorney Ed Peters hoping to instigate a state tax prosecution of Wilson:

Later, one of Wilson’s lawyers met with Peters, and [Wilson attorney Vicki] Slater said Peters told that lawyer that a “high-ranking public official” asked him to prosecute Wilson.

Peters could not be reached for comment.

Wilson did nothing to warrant criminal prosecution, Slater said. “All of this was to help Scruggs in his lawsuit.”

This is the same Dickie Scruggs of whom the New York Times was less than a year ago running moistly admiring profiles quoting common-man admirers of the Oxford, Miss.: lawyer: “good people. … If he tells you something, it’s gospel.”

P.S. It would certainly be interesting to know who that “high-ranking public official” who helped Scruggs in the tax-prosecution matter was, if there was one.

P.P.S. Corrected Monday a.m.: “Langston’s guilty plea was to an information; he waived indictment” (Folo). This post originally described Langston as pleading to an indictment.

{ 10 comments }

Scruggs case audio

by Walter Olson on December 17, 2007

The United States is in possession of a 90-minute “consensual recording” of four of the five defendants — it would appear that Timothy Balducci wore a mike into a meeting — as well as 124 intercepted phone conversations (Lotus/folo, WSJ law blog, Rossmiller).

Scruggs indictment XI

by Walter Olson on December 17, 2007

Two noteworthy stories in the Mississippi press: Anita Lee of the Biloxi Sun-Herald takes a look at “Dickie Scruggs’ $50 million man: What did P.L. Blake do to earn all that money?” (Dec. 16; some earlier Blake discussion).

Blake will earn $50 million, court records show, for clipping newspaper articles and alerting Scruggs to maneuvering in political “cloakrooms,” as Scruggs put it, from Mississippi to Washington. …

Accounts of how Blake earned the money are vague and contradictory.

Even more surprising, Blake and Scruggs were unable to say whether they sealed their business agreement with a handshake or in writing.

A few points brought out in the article: “Scruggs said Tom Anderson, who then worked in Lott’s office, referred Blake to Scruggs.” Attorney General Mike Moore, nominally Scruggs’s public client after hiring him to advance the state’s interests in the tobacco litigation, was aware that Blake was being paid, though he professes surprise at how much. And Scruggs routed the $10 million in initial tobacco payments to Blake through attorney Joey Langston as intermediary. (more discussion)

The assignment of steady continuing payments to Blake over the life of the tobacco settlement distinctly resembles a gesture toward diverting a share of the tobacco proceeds (a contingency share, as it were) to reward and incentivize Blake, or perhaps Blake-and-others-too, to work for the success of the deal. [corrected 12:24 on proofreading after posting; I mistakenly used a wrong surname in place of "Blake" here and below.]

If reporters or others at some point succeed in reaching and questioning Blake, who is said to have moved to Alabama, presumably one of the questions worth asking him will be: is he really the final recipient and ultimate beneficiary of all that impressive cash flow — declaring it on his income tax, having all the funds available for his personal use, and so forth — or does he pass/has he passed some of the money along to anyone else? If he keeps it all, it’s no wonder the questions will keep re-echoing about whether his services could really have been worth that much. If it turns out he is passing/has passed some of it along to another actor or actors, why would things have been arranged that way? One possibility — though not the only one, of course — is that such further beneficiary or beneficiaries might not wish to be known publicly as holding a share in the payouts of the great tobacco project. (Update: a Monday article by Anita Lee in the Sun-Herald (”Blake’s information ‘right-on’”, Dec. 17) quotes Moore saying that Blake seemed to have accurate intelligence in what was going on in tobacco-industry and Republican circles.)

The other noteworthy story is by Jerry Mitchell in the Jackson Clarion-Ledger (”Feds probe Hinds case under scrutiny”, Dec. 16). It confirms that one of the “bodies buried” that Balducci told federal agents about relates to the Luckey/Wilson asbestos fee matter, which was eventually split into two legal proceedings, both hard-fought, with Luckey faring better than Wilson in the legal battle against Scruggs. In addition, the search warrant for the Langston law firm sought documents relating to the Wilson case “as well as documents regarding payments to Jackson lawyer Ed Peters, who played no known role in the case. In 2001, Peters retired as Hinds County district attorney.”

An active comment thread at Lotus/folo includes additional information about Peters, among other topics, and also passes along details about some of non-wannabe Timothy Balducci’s past involvements in high-stakes litigation, from his own promotional material. A sampling:

In 2006, Tim was Lead Counsel in Mississippi’s successful prosecution of securities fraud claims against Citigroup in Federal District Court in New York. His success in representing the state in so many complex litigations was a major factor which contributed to his selection by the Commonwealth of Kentucky to prosecute an action on its behalf to recover over $1 Billion dollars in government funds from a major chemical manufacturer. Also, the United States District Court in Charleston, South Carolina, selected Tim to serve on the National Leadership Committee for the ReNu contact lens solution litigation against Bausch & Lomb.

Notes a commenter: “it’s amazing how much lawyering these tiny law firms seem to get done. It’s just as amazing that he gets it done with *no reported decisions.* Pretty strange.”

Alan Lange at Y’All Politics is back with a synopsis of Scruggs’s current troubles, and as always don’t miss the David Rossmiller updates (Dec. 15 and Dec. 16).

Scruggs indictment IX

by Walter Olson on December 12, 2007

Yes, it seems there were wiretaps. Defendants will be seeing evidence from the prosecution momentarily which might (or might not) be the trigger for further flipping and early plea deals, if such there will be.

There is enormous curiosity (e.g.) about P.L. Blake, to whom Scruggs says he paid $10 million (and tens of millions more in future payments) for vaguely described intelligence services aimed at swaying political influentials during the tobacco caper. Per a 1997 account posted at Y’All Politics, “Blake pleaded ‘no contest’ in 1988 to a federal charge that he conspired to bribe officials of the now-defunct Mississippi Bank to secure favorable loan terms.” The same article, citing reporting in the Jackson Clarion-Ledger, reports that Blake was in close phone contact between 1994 and 1996 with eventually-disgraced state Auditor Steve Patterson, who after leaving office went into partnership with Timothy Balducci and is one of the five indicted in the current Scruggs affair. Per AP, “Patterson was a banker at Mississippi Bank before his 1984-1987 tenure as head of the Mississippi Democratic Party.”

David Rossmiller, as so often, is out front with a report filling in background on two other controversies involving Blake. One arose from a venture into the grain storage business which landed him in a Texas dispute in which his attorney was none other than Fred Thompson, later a Tennessee senator and presidential candidate. The other arose from his cordial dealings with a former chief of staff to Sen. Trent Lott (R-Mississippi).

Harper’s blogger Scott Horton has now published his take, as is his wont heavily dependent on hush-hush (but no doubt wholly trustworthy) confidential sources who float all sorts of theories about scoundrelly doings by the highly placed. He winds up with a theory that would pull Sen. Lott into it (though with no allegation of criminality) by way of the Acker contempt matter, as distinct from either the Balducci/Lackey bribery attempt or, say, the Paul Minor affair. Of Horton’s many anonymously sourced speculations, the one that caught my eye was tucked into a footnote: “A law enforcement official I interviewed, who for professional reasons asked to remain anonymous, told me that Scruggs’s junior partner Sidney Backstrom might take the same road as Balducci.” Now that is news a rumor (more). (Update Tues. evening: Backstrom’s attorney Frank Trapp flatly denies that anything of the sort is in the works: Patsy R. Brumfield, “Backstrom firm on innocence, his attorney says”, Northeast Mississippi Daily Journal, Dec. 12.)

This is probably a good place to apprise readers who aren’t aware of it that 25-odd years ago, while first gaining a footing in the policy world, I worked briefly on Capitol Hill drafting research papers for a committee then headed by Mr. Lott. We only talked a couple of times, I had never set foot in the state of Mississippi at the time, and I’m pretty sure he wouldn’t recognize me on the street, but if you’re a conspiracy theorist about such matters, there you have it.

At Y’All Politics, commenter “lawdoctor1960″ has some speculation as to why the remarkable deposition of Scruggs in the Luckey case didn’t get more media or political attention at the time.

Welcome Andrew Sullivan, David Rossmiller, Y’All Politics readers.

Attorney Tim Balducci’s role as deputized lawyer for the state of Mississippi in the MCI and Zyprexa cases is drawing public scrutiny, and may result in pressure for reform of AG outside contracting.

We’ve started a new “Scandals” category for readers who want quick access to coverage of the Mississippi mess, also stocked with some earlier links to coverage of such earlier blow-ups as Milberg Weiss/Lerach, Kentucky fen-phen, the Paul Minor affair, etc. For those who are following Scruggs posts in sequence, be aware that yesterday’s first and second posts fell outside the numbering scheme.

{ 2 comments }

Timothy Balducci, wannabe?

by Walter Olson on December 11, 2007

A major early theme of the Dickie Scruggs defense has been that fortyish attorney Timothy Balducci, who was “flipped” by the feds and is cooperating with prosecutors, and who has spoken of sharing with Scruggs knowledge of where there are various “bodies buried”, is a clueless newbie, a mere Timmy Tiptoes who sought to impress his elders in hopes of someday being admitted to their inner circle. Scruggs attorney John Keker used the “wannabe” epithet the other day, saying he didn’t think Scruggs and Balducci “were close at all”, and it had earlier come to mind as I sought to convey the tone of the WSJ’s Oxford Christmas party quotes. Let’s review, then, some of the revelations of recent days:

  • As a former principal in the Langston law firm, one of the state’s best known, Balducci had been appointed individually to represent the state of Mississippi as a Special Assistant Attorney General in two high-stakes and politically sensitive matters, the MCI tax dispute and the litigation against drugmaker Lilly seeking reimbursement for outlays on the psychiatric drug Zyprexa.
  • According to Alan Lange at Y’All Politics, the agreement from AG Hood’s office in the MCI case retaining the Langston Law Firm refers to “its principal members, Joseph C. Langston and Timothy R. Balducci”, and Langston’s own advertising at the time referred to the firm as being “anchored by longterm partners Langston and Tim Balducci”.
  • Scruggs retained Balducci to represent him in the highly sensitive Jones lawsuit, which aside from demanding millions of dollars carried the prospect of laying open the financial arrangements of the Scruggs Katrina Group to a curious world.
  • Earlier, Scruggs retained Balducci to represent him in the long-running and highly sensitive Alwyn Luckey fee lawsuit, which per the Times culminated in an eventual $17 million payout to Luckey. The opposing attorney who handled that case for Luckey, Charles M. Merkel, Jr., told the New York Times: “Balducci made part of the closing arguments in one of my cases, and they sat at the same table. When I was negotiating with them, it was generally with Balducci.”
  • In the Luckey case, when Scruggs sat for the fantastically sensitive 2004 deposition in which he was obliged to unveil explosive details of how he spread around money to advance the tobacco-Medicaid litigation — the episode that made his national reputation and brought him plus-or-minus a billion in fees — the lawyer on hand representing him, and peppering the proceedings with continual objections, was Balducci.
  • After Balducci struck out with former state auditor Steve Patterson to form an independent practice, his firm listed of counsel political and legal notables that included a former governor of the state of Mississippi and the former DA of the county that includes most of Jackson.
Not exactly the profile of a “clueless wannabe”. More like a “trusted inside player”, no?

P.S. For those unacquainted with the Beatrix Potter reference, the eponymous gray squirrel in her story gets into trouble with his fellows: “Timmy rolled over and over, and then turned tail and fled towards his nest, followed by a crowd of squirrels shouting — ‘Who’s-been digging-up my-nuts?’”

{ 1 comment }

Yesterday’s sensational developments are covered at the Jackson Clarion-Ledger, Rossmiller, and AP/FoxNews.com. The Northeast Mississippi Daily Journal quotes attorney Tony Farese, who among other connections to the principals represents Zach Scruggs, as asserting that the files taken relate to former Langston firm attorney Tim Balducci. However, some other reports, such as Sid Salter’s Clarion-Ledger blog, are indicating that the federal agents also removed files from Langston’s residence. (Update Dec. 12: Langston’s mother says these reports are erroneous, per Salter). Discussions are in progress at Y’AllPolitics and Lotus/folo.

Langston, a prominent figure on the Mississippi litigation scene, has been among lawyers representing Dickie Scruggs following his criminal indictment; the Sun-Herald notes that he also (with Balducci) represented Scruggs in the Alwyn Luckey fee dispute, known to be a topic of interest to federal prosecutors. Readers of this site may also remember Langston from the Foradori v. Captain D’s case two years ago, and more recently from the controversy over the MCI contigency-fee tax-negotiation case.

Scruggs indictment VIII

by Walter Olson on December 9, 2007

A report in today’s New York Times advances the ball on a number of fronts:

  • Per an unidentified official, “federal prosecutors have asked the Justice Department’s Public Integrity Section to examine whether Mr. Scruggs has engaged in multiple bribery attempts of local judges.” DoJ is said to have sent lawyers to Mississippi to check out leads along these lines, and is also said to be interested in possible misconduct by Scruggs in the Alwyn Luckey fee dispute.
  • The Times interviews Clarksdale, Miss. attorney Charles M. Merkel Jr., who spent more than a decade in court fighting Scruggs in the Luckey dispute:
    “It’s scorched earth with Dickie Scruggs,” says Mr. Merkel, sitting in a wood-paneled office featuring duck-hunting memorabilia and two framed checks representing about $17 million in payments that Mr. Scruggs had to disgorge to Mr. Merkel’s client — a lawyer named Alwyn Luckey who argued that Mr. Scruggs shortchanged him for work he performed on asbestos cases that made Mr. Scruggs rich.

    Mr. Merkel and prosecutors say that the Luckey case foreshadowed some of Mr. Scruggs’ woes in the current bribery case. “As far as whether he’s guilty, I can’t say,” Mr. Merkel concedes. “But I’m not surprised, because he’s willing to use any means to an end. And it irks the hell out of me when Scruggs skates on the edge and makes the profession look bad.”

  • Keker, as predicted, is labeling Timothy Balducci a “wannabe” and says, of him and Scruggs: “I don’t think they’re close at all.” Merkel, for one, isn’t buying that: “He’s a lot closer to Scruggs than Scruggs would like to portray now,” Mr. Merkel says. “Balducci made part of the closing arguments in one of my cases, and they sat at the same table. When I was negotiating with them, it was generally with Balducci.”
  • The Times also picks up on Scruggs’s liberal dispensing of resources to sway Mississippi political influence-holders during the tobacco caper:
    In his deposition with Mr. Merkel in 2004, he discussed some $10 million in payments he made to P. L. Blake, a onetime college football star in Mississippi. After running into financial troubles, Mr. Blake became a political consultant for Mr. Scruggs, helping his boss navigate the back rooms of state politics and tobacco litigation.

    In the deposition, where he was represented by Mr. Balducci, Mr. Scruggs praised Mr. Blake for keeping “his ear to the ground politically in this state and in the South generally, and he has been extremely helpful in keeping me apprised of that type activity.” Mr. Blake could not be reached for comment.

    When Mr. Merkel further pressed Mr. Scruggs about Mr. Blake’s services, Mr. Scruggs elaborated: “He has numerous connections — in terms — when I say connections, I don’t mean that in a sinister way, I mean he just has a lot — he knows an awful lot of people in the political realm. And he — depending on the stage of tobacco litigation proceedings was keeping his ear to the ground, prying, checking. I mean, I never asked who or what or all that.”

$10 million in walking-around money — and Scruggs “never asked who or what or all that”? (Update: in a sensational new post, David Rossmiller points to a document — page 514 of the Luckey trial transcript, PDF — in which the overall money paid to or through Blake (most of it in the form of future payouts) is pegged at around $50 million. The “well over $500,000″ figure told to reporter Michael Orey seems to have signified well, well over, indeed.)

David Rossmiller takes note of a letter by Balducci dated August 1 over a regulatory matter which in its cocksure and sarcastic tone suggests that Balducci had not yet been confronted and “flipped” by federal investigators as of that date. This morning he adds a document and link roundup.

The Jackson Clarion-Ledger quotes Jackson attorney Dennis Sweet, who partnered with Scruggs on slavery reparations, as saying he “had a hard time believing that Dickie would involve his son in anything like this,” a comment that perhaps is open to close reading.

At Y’AllPolitics, two commenters discuss how conspiracy investigations logically develop over their life cycle. David Sanders notes that when the timing is up to them, federal investigators prefer not to uncover operations and reveal informants until they are satisfied they’ve caught all the targets in their net, which raises the question of whether they had developed what they considered to be the best evidence they were going to get, or whether some development forced their hand into closing the net before that point. “LawDoctor1960″ observes that the indictees will soon get a look at the prosecution’s case, which if damning could induce one or more to join Balducci in “flipping” with resulting further revelations and perhaps further indictments.

The WSJ law blog has some answers to the question put the other day: Where is Mr. Keker?

Folo wonders: does the Scruggs firm (as opposed to Scruggs Katrina) really not have a website, and if so, isn’t that exceedingly strange? Don’t they want to encourage potential clients to approach them?

Finally, for those who are wondering whether there’s any pro-Scruggs blogging to be found, we can report that we’ve spotted a reasonable facsimile at Cotton Mouth and at Pensacola Beach Blog.

Earlier coverage: here, here, here, etc.

Breaking Monday afternoon: FBI agents search offices of another leading Mississippi plaintiff’s attorney, Joey Langston, who has been representing Scruggs in his indictment, and has had many other past dealings with him.

Scruggs indictment VII

by Walter Olson on December 7, 2007

With the criminal case itself not furnishing many new developments over the past day or two, attention is turning to the question of what the “buried bodies” might be of which Tim Balducci claimed knowledge (and which prosecutors might wish him to sing about), and also to the possibly overlapping topic of Scruggs’s earlier run-ins with lawyers and other professionals over the splitting of fees. (Balducci represented Scruggs in some fee disputes, as did the Jones firm that later sued him over fees.) Also drawing much attention is the question of whether an intensified ethical searchlight will make life hot for the Mississippi political figures who’ve participated most extensively in Scruggs’s litigation campaigns over the years, namely former Attorney General Mike Moore and present AG Jim Hood.

The U.S. Chamber-backed stable of publications that includes Legal NewsLine has been digging into these topics. At the SE Texas Record, Steve Korris relates details of Scruggs’s lengthy and bitter dispute over asbestos fees with attorneys William Roberts Wilson Jr. and Alwyn Luckey, in which Scruggs was represented by John Griffin Jones. Jones’s associate Steve Funderburg in March of this year confronted Scruggs in dramatic fashion in an email over his sense of having been done out of Katrina fees:

“I have looked in the mirror all weekend and tried to figure out how I could be so stupid,” he wrote. “John and I DEFENDED you in fee dispute litigation for God’s sake.”

He wrote, “We DEFENDED you when people said you were greedy, or were a back stabber, or a liar, or anything else.”

He wrote, “You have developed a good routine. It worked. But go to your grave knowing that you have shaken my belief in everything I hold dear.”

He wrote, “I did not believe that people like you really existed. I am ashamed and will always be ashamed of having defended you and protected you.”

See also Y’All Politics for discussion.

[click to continue…]