Archive for December, 2007

Scruggs indictment VIII

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.

Best of 2007: January

Open thread

Soliciting nominations for topics you’d like us to write about. Let us know here or, if you don’t want to wait for the hassle of comment moderation, on Facebook.

December 8 roundup

  • As governor, Huckabee signed a good tort reform package capping punitive and non-economic damages, and reforming joint and several liability and venue law, but the rest of his economic record is big-government. And David Harsanyi is critical of Huckabee’s claimed opposition to nanny-statism. [Insurance Journal; Human Events; Harsanyi; RCP; Michael Tanner @ FoxNews]
  • Update to the popular Bridezilla flowers lawsuit; florist files opposition. Lots of comments ensue. [Lattman]
  • South Dakota Supreme Court: no, you can’t sue a pharmacy for being a “drug dealer” when plaintiff steals prescription medicine for a disabled friend and injures himself OD’ing on it. [On Point]
  • Former litigator hired to invest $100m in court cases for UK hedge fund. [Times Online]
  • Atkins fallout in Texas and California, as professional anti-death-penalty experts there happily minimize subject IQs to call their intelligent clients retarded. Earlier: Feb. 2005; Sep. 2003. [Science Evidence blog; and again]
  • Heartbalm tort of alienation of affection withstand constitutional challenge in Mississippi. Earlier: Jul. 5; Nov. 2006, etc. [Torts Prof]
  • Bob Woodruff biography: I would have died if my injury happened in the United States because of fear of liability. [Murnane]
  • I’ve updated my paper on Thomas Geoghegan’s new book. [SSRN]
  • Overlawyered holds slim lead at ABA Blawg 100 popularity contest. But why aren’t any of you voting for Point of Law? [ABA Journal]

Buys submerged land, sues to have it drained

Curious goings-on in North Carolina:

Kristin Wallace bought some very wet land as an investment. Eight acres of it, all underneath Lake Lynn.

The Cary woman bought the land for $12,500 last year at a public auction of property with delinquent taxes. Now she is suing to try to force the city of Raleigh or Wake County to buy the soggy land from her or drain it.

“It’s extremely valuable to me,” Wallace said, “dry.”

City and county officials say Wallace, who started investing in real estate less than two years ago, knew the land was lake bottom when she bought it, something she doesn’t dispute.

“It’s bought as is,” said Shelley Eason with the County Attorney’s Office.

(Sarah Ovaska, “Pull the plug on Lake Lynn, suit demands”, Raleigh News & Observer, Dec. 6).

Scruggs indictment VII

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.

Read On…

Operation Lucky Bag

Find a wallet, go to jail? New York undercover cops have been leaving wallets and purses around in public spots in the city, then arresting anyone who picks them up and doesn’t present them to a nearby uniformed officer. Some arrestees have otherwise clean records and say they intended to use ID inside the bags to notify the rightful owners. Putting money inside the bags didn’t lead to serious enough charges, in the coppers’ view, so they began salting them with live American Express cards so that the finders could be charged with grand larceny, with four years behind bars. (N.Y. Daily News, more, N.Y. Times, Fox News, ABC News, Gothamist).

Damned if you do, damned if you don’t files: “Cyber-bullying”

School districts have learned that they cannot discipline students for abusive Internet postings they make off-campus. Layshack v. Hermitage Area School District, No. 074465 (pending 3d Cir.); Dwyer v. OceanPort School District No. 03-6005 (D. N.J.) ($117,500 settlement to student suspended over web site). “Lawyers say school districts are in a legal quandary: If they punish a student for something they did off school grounds, they could get hit with a freedom of speech claim. If they do nothing, they could get hit with failure to act litigation.” (Tresa Baldas, “As ‘cyber-bullying’ grows, so do lawsuits”, National Law Journal, Dec. 10).

December 7 roundup

  • Speaking of privacy, consider what happens when lawyers get a hold of your email. (When will we see law professors eager to create new causes of action consider the privacy-destroying implications of ediscovery?) [Fulton County Daily Report/law.com; Toronto Globe & Mail; Point of Law] Earlier: Jan. 9 and links therein.
  • Speaking of privacy and reputation, Mary Roberts goes to trial, but Above the Law doesn’t mention our coverage (June 2004; Sep. 2005; Feb. 6; Mar. 19; May 17), and misses the juicy details.
  • Oy: “Woman who ‘lost count after drinking 14 vodkas’ awarded £7,000 over New Year fall from bridge.” News from the compensation culture not entirely bad: damages were reasonable, and the court did hold the woman 80% responsible, the exact opposite of the McDonald’s coffee case. [Scotsman.com]
  • No good deed goes unpunished: Sperm donor liable for child support, judge rules. [Newsday/Seattle Times]
  • Bad attorney gets fired, sues DLA Piper for discrimination, represents herself pro se, demonstrates firsthand why she got fired: law firm wins on summary judgment. [ABA Journal; update: also New York Law Journal]
  • Romney on tort reform; McCain on medmal. [Torts Prof Blog; Torts Prof Blog]
  • Another day, another Borat lawsuit. I’m still waiting for the consumer fraud lawsuit from moviegoers upset that it was not actually a Kazakh documentary. [Reuters; earlier]

Daniel Solove’s The Future of Reputation

Daniel Solove’s solution to the potential problem of damning information on the Internet is to open up the libel laws and to remove the Communications Decency Act safe-harbor for site owners. As Amber Taylor points out in a provocative review, one could take this chain more seriously if Solove more directly considered the real-world consequences of such a rule, and the amount of true speech it would shut down because of the potential legal expense of defending speech in the absence of bright-line rules. Eric Turkewitz’s review finds his blogger identity trumping his plaintiffs’ attorney identity to also oppose the expanded litigation that Solove proposes. David Giacalone is more favorable, though also unwilling to endorse Solove’s policy prescriptions.