Posts Tagged ‘asbestos’

Scruggs indictment XI

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 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.

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…

November 28 roundup

All-medical edition:

  • Shocker for New York docs: possible assessment of $50K apiece to make up losses at nonprofit med-mal insurer [White Plains Journal-News Chamber reprint]
  • Dr. Ray Harron, a central figure in furor over mass asbestos and silicosis screenings, seems rather hard to locate at the moment, though he does have a lawyer speaking on his behalf [NY Times, WV Record]
  • Another push to raise the threshold of liability for emergency room care in Arizona [AZ Business Gazette]
  • End run around Roe? Some state legislatures attaching sweeping new tort liabilities to the provision of abortions [Childs]
  • Three nominees for worst-founded medical lawsuit, lamentably unsourced [Medical Justice]
  • Spokane psychiatrist shouldn’t have engaged in romantic (though not sexually consummated) dalliance with forty-ish patient; that much is clear. But should she now get cash? [AP/Seattle Times]
  • “Baby falls to floor during home delivery, mom sues hospital for too-early discharge” [SE Texas Record]
  • A sensitive subject: malpractice and doctors’ suicides [KevinMD, a while back]
  • “If the ‘loser pays’ system is so bad, why do most other countries keep it around instead of switching over to an ‘Americanized’ system of tort law?” [WhiteCoat Rants]
  • Hospital, ambulance service among those sued after fatal crash of NFL’s Derrick Thomas [seven years ago on Overlawyered]

October 12 roundup

  • In Scotland, car repair shop faces music royalty suit because its employees listen to radios on the job [BBC]
  • Pediatricians grill kids about their parents’ drinking, gun ownership and antisocial habits — what, weren’t the hairdressers reporting back enough dirt for the authorities to work with? [Malkin, Szwarc]
  • Watch out for the new ADA Restoration Act of 2007, which would reverse several Supreme Court precedents with the aim of making it easier to file and win suits [Bader]
  • Don’t confuse Hollywood’s idea of lawyering, as in Clooney’s “Michael Clayton”, with the real kind [Lundegaard, MSNBC]
  • “It costs millions of dollars in litigation fees to show that a patent should not have been granted, and most big corporations have learned that the hard way.” [Chachkes @ CNet]
  • Banning all uses of lead from metal assemblies can result in “tin whiskers” leading to catastrophic failures in electronic devices — lucky those aren’t dangerous or anything [AP]
  • Armenian-American writer Garin Hovannisian isn’t an admirer of the Congressional genocide resolution [Boaz @ Cato-at-Liberty; see also Jul. 27]
  • Lynchburg, Va. woman: hey, I invented those pre-moistened cleaning wipes [News Advance via VLW]
  • Don’t listen to trolls like this Olson fellow [Mark Thoma comments]
  • Another round of coverage on libel tourism, SLAPPs and terror-support research [Broyde & Lipstadt @ NYT; Miller @ City Journal, Levitt @ The New Republic]
  • New at Point of Law: Ted on yet another iPhone suit, this time demanding a billion plus; further coverage of the Hofstra/Lynne Stewart affair; after many failures, lawyers score a $143 million verdict against Wyeth over hormone replacement drug Prempro/Premarin; more on the U.S. Navy, WWII and asbestos disease; new Irvine law school’s in the money; and much more.

September 25 roundup

  • Picture of farmer with goose appears on greeting card, he wants $7.5 million [Roanoke Times; earlier]

  • More class actions filed over Apple iPhone [Ars Technica on roaming and battery claims, O’Grady’s PowerPage, iPhoneWorld; earlier]

  • L.A. Times quotes attorney Stephen Yagman on prison overcrowding, but forgets to mention that he was lately convicted of thirteen felonies [Patterico]

  • Bad idea watch: compulsory national service [Somin @ Volokh]

  • Doing well representing the little guy: Gerry Spence lists his Wyoming residence for sale at $35 million [WSJ/Chicago Daily Herald]

  • “Appropriate”, not “perfect”, justice needed: “We simply have to stop killing litigants with kindness,” says chief judge of Australia’s largest state [The Australian]

  • Toddler killed after wandering into heavy traffic, trucker should have been more on guard against such a thing happening [Salt Lake Tribune]

  • Pennsylvania pro se litigant sues Google, says it spells his social security number upside down [Ambrogi] More: Coyote says “Up next, the owner of Social Security number 71077345 sues Shell Oil for the same reason.”

  • Once billed as “King of Torts”, Miami asbestos lawyer faces fifteen years behind bars for stealing $13 million from clients [Sun-Sentinel]

  • Groom sues bride, saying she took the ring and presents and never got the wedding paperwork straightened out leaving them legally unmarried [ClickOnDetroit]

  • Surgical resident on the hook for $23 million in Wisconsin case; she was the only one of the docs involved not covered by damage limits [Journal Sentinel via KevinMD]

“Everybody, that is, except the guys who did it.”

Mark Steyn throws down the gauntlet:

Last week the New York Times carried a story about the current state of the 9/11 lawsuits. Relatives of 42 of the dead are suing various parties for compensation, on the grounds that what happened that Tuesday morning should have been anticipated. The law firm Motley Rice, diversifying from its traditional lucrative class-action hunting grounds of tobacco, asbestos and lead paint, is promising to put on the witness stand everybody who “allowed the events of 9/11 to happen.” And they mean everybody – American Airlines, United, Boeing, the airport authorities, the security firms – everybody, that is, except the guys who did it.

According to the Times, many of the bereaved are angry and determined that their loved one’s death should have meaning. Yet the meaning they’re after surely strikes our enemies not just as extremely odd but as one more reason why they’ll win. You launch an act of war, and the victims respond with a lawsuit against their own countrymen.

But that’s the American way: Almost every news story boils down to somebody standing in front of a microphone and announcing that he’s retained counsel. Last week, it was Larry Craig. Next week, it’ll be the survivors of Ahmadinejad’s nuclear test in Westchester County. As Andrew McCarthy pointed out, a legalistic culture invariably misses the forest for the trees. Sen. Craig should know that what matters is not whether an artful lawyer can get him off on a technicality but whether the public thinks he trawls for anonymous sex in public bathrooms. Likewise, those 9/11 families should know that, if you want your child’s death that morning to have meaning, what matters is not whether you hound Boeing into admitting liability but whether you insist that the movement that murdered your daughter is hunted down and the sustaining ideological virus that led thousands of others to dance up and down in the streets cheering her death is expunged from the earth.

(Mark Steyn, “No terrorism, just war?”, Orange County Register, Sept. 9; Anemona Hartocollis, “Little-Noticed 9/11 Lawsuits Will Go to Trial”, New York Times, Sept. 4; also to the point).

Putnam County Hospital update

We earlier discussed the case of osteopath John King (who now calls himself Christopher Wallace Martin after surrendering his medical license in two states). We’ll state up front: King was apparently deservedly fired for incompetence, and that undoubtedly includes some legitimate cases of malpractice. (Indeed, our original note was how West Virginia’s Putnam County Hospital could have perhaps avoided hiring King had not liability concerns prevented his previous employers from communicating problems to the hospital.) Whether it’s asbestos, fen-phen, or an incompetent osteopath, however, the legal system creates incentives for attorneys and plaintiffs to fake cases and free-ride off of the legitimately injured. A YouTube video documents some curious inconsistencies (which, to be frank, are not entirely persuasive to me for all six plaintiffs in the video). The judge has responded to the video by barring both sides from further communications with the media. (Lawrence Messina, AP/Lexington Herald Leader, Aug. 1; Chris Dickerson, West Virginia Record, Aug. 1; Turkewitz blog). The West Virginia Record calls for a prosecutorial investigation.