Posts Tagged ‘Mississippi’

Scruggs indictment IV

The WSJ law blog’s Peter Lattman is now reporting from Scruggs hometown Oxford, Miss. and (with co-reporter Paolo Prada) is in today’s paper with “It’s Party Time For Dickie Scruggs In Oxford, Miss.” (WSJ, Dec. 4, sub-only). Among its newsy items: “People familiar with the investigation” confirm what was widely surmised, that attorney Timothy Balducci “began cooperating with prosecutors at some point after offering the judge money”. Balducci’s whereabouts are not immediately apparent and a “neighbor said no one had been [at his home] for a more than a week.” How much heat is attorney Balducci getting for his role in the case? The WSJ-on-paper quotes Deborah Patterson, wife of Balducci’s business partner and co-defendant Steven Patterson, as saying of Balducci: “He’s a short midget…and he has some sort of complex.” In the online version of the article this quote is shortened (so to speak) to “He has some sort of complex,” but with no correction or other explanation of whether the midget reference was repertorial error or what, exactly.

As emerges fairly clearly in the piece, the Scruggs camp is encouraging a line of defense that portrays Balducci, who has worked extensively with Scruggs in the past and has represented him in earlier lawsuits charging unfair fee division, as a clueless wannabe who pursued the bribe scheme on his own in hopes of impressing the senior lawyer — “a young man wanting to endear himself to Dickie Scruggs”, as one Scruggs intimate is quoted as saying. Famed novelist and Scruggs buddy John Grisham is quoted in the article (and in a separate WSJ blog interview) as saying that the scheme “doesn’t sound like the Dickie Scruggs that I know,” Mr. Grisham said yesterday. “When you know Dickie, and how successful he has been, you could not believe he would be involved in such a boneheaded bribery scam that is not in the least bit sophisticated.” But this is to assume that the payments starkly presented by the indictment as cash-for-the-judge were not intended to be dressed up in some more sophisticated guise, such as eventually forgiven loans routed through some fellow lawyer’s office, made to a relative of the judge, or both. That was the way things were handled in the Paul Minor cash-for-judges affair, in which Scruggs himself was involved, and one should not assume that no such overlay of sophistication would not have been poured over the Lackey payments.

Read On…

Filed under: Dickie Scruggs, Mississippi, Paul Minor, scandals, State Farm, Timothy Balducci

Scruggs indictment, days 3-4

Speculation continues to mount that central bribery-scandal figure Timothy Balducci may be cooperating with prosecutors, and perhaps has been doing so for some time; Balducci had not yet been arraigned as of this weekend, and the indictment quotes extensively from conversations he held with other defendants, in addition to those that took place in Judge Lackey’s bugged chambers. (Peter Lattman and Ashby Jones, “In Scruggs Probe, Focus Turns to Another Lawyer”, WSJ, Dec. 1)(sub-only). In the latest of his extensive posts on the case, David Rossmiller adds to the picture: “From the verbatim quotes by Balducci given in the indictment, one logically can surmise that investigators had substantial recorded evidence that would have given them tremendous leverage over Balducci in obtaining his cooperation against the others.” In addition, certain elements in the indictment’s description of Balducci’s actions suggest that by mid-October, presumably flipped by investigators, he had begun taking steps that could be used to document targets’ knowing participation in the conspiracy (in particular, his return to Dickie Scruggs to finance a purported second-round bribe, and his statement in the presence of Zach Scruggs and Sidney Backstrom that “we paid for this ruling”).

Rossmiller also analyzes the underlying Jones v. Scruggs dispute over legal fees, in which the Jones firm, formerly one of the five participants in the Scruggs Katrina Group (SKG), alleges that it was “frozen out” and ejected by the remaining four firms, allotted only token fees after shouldering the substantial work of case briefing. Why would it have been advantageous to the Scruggs firm to have Judge Lackey shunt this dispute into arbitration? One key reason is that proceeding with a court battle, even if successful, might have risked exposing to the public many of the internal workings of SKG and perhaps also of Scruggs’s own firm. (Having read the Jones complaint, I would note that Jones was alleging that Scruggs had made a common practice of squeezing collaborating lawyers out of their fee shares in earlier, unrelated litigation during his career. The evidence put forth to support such an allegation, apart from whether it turned out to support a claim for punitive damages, might result in public airing of all sorts of messy and embarrassing episodes from the past.)

John Jones and Steve Funderberg, the lawyers whose firm sued Scruggs et al in the underlying Jones v. Scruggs suit, have given an interview to the Mississippi press; Jones says he knows Scruggs well and has represented him in court, but that the relationship changed drastically “when the money hit the table”; of go-between Balducci, Funderberg said, “Knowing Tim Balducci as I do, I am utterly flabbergasted that he would ever be a part of something like that or believe he could ever get away with something like that”. (Jon Kalahar, “Former Scruggs Colleague Says Money Changed Him”, WTOK, Nov. 30).

At Y’AllPolitics, Alan Lange traces many of the recurring connections between the dramatis personae and notes that the “whole crowd” was deeply involved in the much-criticized MCI contingency-fee back taxes negotiation, which we posted on at the time at Point of Law. “Attorney General Jim Hood allowed his largest campaign contributor, Joey Langston, to be the plaintiff lawyer and also appointed Tim Balducci as a Special Assistant Attorney General in that case”. Langston, for whom Balducci used to work, is now among lawyers representing Scruggs.

Some noteworthy reactions to the indictments: “This is maybe the worst day of my life,” says longtime Scruggs friend Don Barrett, quoted in an Associated Press piece that also rounds up some of the high points of Scruggs’ career (Michael Kunzelman, “Scruggs’ career in jeopardy”, AP/Hattiesburg American, Dec. 1). “I’m disappointed in him,” Katrina client Lyman Cumbest of Pascagoula, who’s suing State Farm, said of Scruggs. “With all the money he had, he didn’t have to bribe a judge. He’s got more money than he could ever spend.” (“FBI probe in judicial bribe case to continue”, Jackson Clarion-Ledger, Nov. 30). Byron Steir at Mass Tort Litigation Blog comments (Nov. 30):

If true, all of these allegations suggest remarkable hubris in at least some of the top plaintiffs’ lawyers. One wonders about the effect of a lifestyle of private jets and multiple wins of multiple millions (or tens of millions) in fees. One also wonders about the effect of high-risk, winner-take-all, contingency fee litigation. Brash and aggressive personalities seem to thrive in such an environment — but they too must keep in mind that lawyers ultimately serve the client (not the other way around) and that no one (especially not the lawyer) is above the law.

And more: “It just boggles the mind,” said Biloxi trial lawyer Jack Denton. “Here is a man who has had an enormous amount of success, who reached a level very few attorneys, if any, have reached. Why would he risk everything over a legal dispute over attorneys’ fees?” David Rossmiller, quoted in the same story, has one possible reply, which is that people may begin reevaluating “how this amazingly successful man got to be so amazingly successful.” (Richard Fausset and Jenny Jarvie, “Katrina lawyer at the eye of a storm”, Los Angeles Times, Nov. 30)(& welcome Tom Kirkendall readers).

Filed under: arbitration, attorneys general, contingent fee, Dickie Scruggs, Jim Hood, Joey Langston, Katrina, Mississippi, scandals, State Farm, Timothy Balducci

Scruggs indictment, day two

David Rossmiller at Insurance Coverage Blog (who’s also a co-blogger of mine at Point of Law) continues to be the must-read source on this sensational story and its fast-breaking developments. He’s posted a PDF of Jones v. Scruggs, the lawsuit before Judge Lackey by lawyers who say they were cut out of Katrina fees. He also offers some answers to the question posed by a commenter at Above the Law, who asks, “What kind of cheap-o offers a $40,000 bribe to resolve a dispute over $26.5 million in attorneys fees?!” (To begin with, the ruling sought from Judge Lackey would not have disposed of the fee claim, just sent it to arbitration.) Martin Grace scents a ripe irony in the fee-dispute lawsuit, noting that it charged Scruggs with engaging in the same sorts of tactics toward fellow lawyers that he regularly accused insurers of practicing toward their insureds: “lowballing claims and producing fake documents in support of the claims.”

Jeralyn Merritt at TalkLeft writes that Judge Lackey “presumably [agreed] to tape his calls with the defendants. I suspect the F.B.I. also got a wiretap on Scruggs’ or his co-defendants’ phones, since there are several calls described in the Indictment that don’t involve Judge Lackey. Getting a wiretap on a law firm’s telephone is unusual — particularly due to the substantial and cumbersome minimization efforts required to ensure that calls of clients and lawyers unrelated to the criminal investigation are not overheard.” At the Jackson Clarion-Ledger, columnist Sid Salter has more on co-defendants Tim Balducci and Steve Patterson. A PDF of the indictment is here.

The internal cohesion of the anti-insurer lawyer consortium known as the Scruggs Katrina Group (SKG) appears at present to be under extreme pressure. Rossmiller reports that “policyholder lawyers in general tell me they are seething over Scruggs” and in particular that at least some lawyers who have been his allies “don’t want their names and their cases tarnished with the Scruggs name”. On Thursday an extraordinary contretemps developed in which SKG co-founder Don Barrett of Lexington, Miss. sent a letter (PDF) to a judge hearing Katrina cases against State Farm, suggesting that SKG was being re-formed without Scruggs and would take over the litigation with he, Barrett, as lead counsel (Lattman, WSJ). Within hours, Scruggs had dispatched a letter of his own (PDF) saying that Barrett was misinformed, that it was up to plaintiff families to decide who they wanted to represent them, and that many would undoubtedly wish to retain Scruggs (second posts at Lattman and Rossmiller). As of Thursday evening, the Scruggs Katrina Group website has prominently posted the Scruggs letter but not the Barrett one; one might speculate that if some sort of split within SKG is imminent, the website operation, at least, may have maintained loyalty to the Scruggs side.

On the statewide political repercussions, see Majority in Mississippi, Sid Salter at the Clarion-Ledger, and Chris Lawrence at Signifying Nothing, who also quotes Salter in a comment thread predicting: “The next sob story will be that Dickie’s indictment is about Bush administration persecution of trial lawyers and a rehash of Paul Minor’s problems.” Take it away, Adam Cohen and Scott Horton!

On political repercussions nationally, it didn’t take long for the Hillary Clinton campaign to cancel the Scruggs-hosted fundraiser that was to have been headlined by husband Bill Clinton next month (Associated Press, WSJ Washington Wire). The North Dakota political blog Say Anything thinks politicos in that state should return the (rather substantial) sums they have received from Scruggs and colleagues, but one may reasonably assume that such calls will be ignored, just as elected officials have been in no hurry to divest themselves of the booty collected from such figures as felon/mega-donor William Lerach.

Where are Scruggs’s admirers and defenders? One can only suppose that somber music is playing in the corridors at the business section of the New York Times, which has run one moistly admiring profile of the Mississippi attorney after another in the past couple of years. As of 3 p.m. Thursday, the Times’s very restrained story on the indictment was in a suitably inconspicuous position on the paper’s online business page — the 15th highest story in the left column, in fact. The story, by serial Scruggs profiler Joseph B. Treaster, quotes the relatively ambiguous line attributed to defendant Timothy Balducci — “All is done, all is handled and all went well.” — but omits the far more smoking-gunnish “We paid for this ruling; let’s be sure it says what we want it to say.” And things are anything but upbeat at Mother Jones, where Stephanie Mencimer concedes that she finds the indictment “pretty damning“.

More links: Paul Kiel, TPM Muckraker (indictment “devastating… it doesn’t look good for Scruggs”); Legal Schnauzer (defender of Paul Minor distinguishes the two cases); WSJ interview with Judge Lackey (sub-only) and editorial (free link), Rossmiller Friday morning post (certain details in indictment suggest that a conspiracy insider, possibly Balducci, may have cooperated with prosecutors)(& welcome Instapundit, Point of Law, TortsProf, Adler @ Volokh, Open Market, Y’allPolitics, Majority in Mississippi, Rossmiller readers).

Filed under: arbitration, Bill Lerach, Dickie Scruggs, Katrina, Mississippi, North Dakota, Paul Minor, scandals, State Farm, Timothy Balducci, tobacco

Scruggs indicted on bribery charge

“A federal grand jury today indicted one of the nation’s most successful trial lawyers, Richard F. Scruggs, on criminal charges that he and other lawyers engaged in a scheme to bribe a judge.” The 13-page indictment charges five lawyers, including Scruggs and his son and law partner Zach, with offering Mississippi state judge Henry Lackey $40,000 for favorable action in a lawsuit filed against the Scruggs firm over Katrina insurance fees. “The indictment says Judge Lackey, who sits in Mississippi’s Third Circuit Court District, reported the ‘bribery overture’ to federal authorities and agreed to assist investigators in an ‘undercover capacity.'” (AP/New York Times, Nov. 28; Biloxi Sun-Herald).

Jerry Mitchell of the Jackson Clarion-Ledger is out front on the story, reporting: “Some of the conversations between Balducci and the judge were apparently taped,” and reporting alleged language uttered by some of the indicted lawyers, including: “We paid for this ruling; let’s be sure it says what we want it to say.” (“Scruggs arrested on bribery charges”, Nov. 28). David Rossmiller is following developments at Point of Law and at his blog, where he has a PDF of the indictment.

More: Y’all Politics has considerable reader comment about the implications for other Mississippi political figures, and notes drily that “for starters, Dickie Scruggs fundraiser for Hillary Clinton on December 15th featuring Bill Clinton, will likely be cancelled.” Many sites, including Michelle Malkin’s, RedState, and Tim Noah’s “Chatterbox” at Slate, are speculating on the close proximity of these developments to the surprise retirement of Scruggs’ brother-in-law, Sen. Trent Lott.

Filed under: Dickie Scruggs, Hillary Clinton, Katrina, Mississippi, scandals

“Mississippi on Trial”

Jim Copland explains what’s at stake in elections today in Mississippi.

And Copland’s piece doesn’t even include the latest news, that incumbent AG Jim Hood has been sued by State Farm, which makes some explosive allegations. A judge has granted (and another judge has extended) a TRO against Hood’s harassment of the insurer.

Update: see also Forest Thigpen’s take.

Filed under: Jim Hood, Mississippi, politics, State Farm

More Tidbits

Jackpot justice of another kind

A man on the nickel slot machines wins over $1M despite the maximum payout of $2,500. The casino blames computer error. The story shows a picture of the stoic gambler in front of the cordoned-off slot machine.

Etiquette expert pranked in ‘Borat’ sues

Yes, another ‘Borat’ suit, here. As the story points out, why wait so long? Come on, folks, jump on the bandwagon!

Wrong doctor sued, pays out of pocket due to Med-Mal policy deductible

Sue the wrong doctor and drag out the litigation process, all to the detriment of the defendant. The story notes that courts rarely find suits are frivolous because “there’s almost always some grounds for a suit to be filed.” (Update: Jan. 6).

Filed under: Borat, Mississippi, roundups

October 13 roundup

Shocker- Washington state trial lawyers lie in ad promoting litigation windfall referendum. [The Olympian; Reject R-67]

Mississippi AG Jim Hood rewards his out-of-state trial-lawyer campaign donors. [Hattiesburg American]

Update: Illinois Justice Robert R. Thomas settles his libel case; sued reporter is unrepentant. [Law.com]

Update: Cop withdraws slip-and-fall lawsuit; department placed her on paid leave and is investigating [South Florida Sun-Sentinel]
Update: 1-800-Flowers suit dismissed on technicality; plaintiff adulterer vows to refile in New York. [On Point]

Update: Court reverses injunction in whales v. US Navy sonar lawsuit, but lawyers vow to keep trying. [Bashman roundup]
Wrongful sermon a cause of action? [On Point]

Don’t expect your rapist to be convicted by a Philadelphia jury. [Philly Magazine]

Facebook as treasure-mine for litigation evidence. [Law.com]

Dry-cleaners can bring frivolous lawsuits, too. [New York Post]

Filed under: Facebook, Illinois, Jim Hood, libel slander and defamation, Mississippi, Navy sonar, Philadelphia, roundups, Washington state

Mississippi governors’ race: John Eaves

Does the Democratic Party realize the extent to which party leaders are selling out its principles to the trial lawyers? It’s gotten to the point that they’re running John Arthur Eaves, Jr., for governor in Mississippi. Eaves is pro-school-prayer, anti-abortion, and more sanctimonious in his Christianity and gay-bashing than any Republican regularly criticized by the Kossacks of the Left. But at least he supports (and is a member of) the trial bar! Democrats’ other constituencies should take a long hard look at the extent to which their issues are going to take a back seat to the litigation lobby’s takeover of the party. (Adam Nossiter, “In Mississippi, Democrat Runs in G.O.P. Lane”, New York Times, Oct. 10).

Update: Howard Erichson notes Eaves’s slogan “”If it wasn’t your fault or an act of God then someone must be held responsible” and Peter Lattman also covers the page-1 Times story.

Filed under: governors, Mississippi, politics

Contingent-fee tax collection in Mississippi, cont’d

Mississippi state auditor Phil Bryant “has issued a demand letter for recovery of the $14 million in legal fees paid by MCI to two law firms in the wake of the state’s $110 million settlement with MCI in a 2005 tax fraud case.” The Langston and Lundy & Davis law firms “were hired as outside counsel to represent the state by current Attorney General [Jim] Hood. Langston has been identified as one of Hood’s largest campaign contributors, a reality that Langston doesn’t deny.” The two firms were then cut into the $14 million as part of the negotiated settlement, but Bryant says the money belonged to the public and should have gone through the appropriations process. The twist: to enforce the state’s rights in the matter, Bryant will apparently have to call on legal support from the office of AG Hood himself, and you have to wonder how cooperative he’ll be. (Sid Salter, “Langston: State asks recovery of legal fees”, Jackson Clarion-Ledger, Sept. 23; “State parties bring smack down”, Biloxi Sun-Herald, Sept. 23). More on the furor: Point of Law, May 13 and May 23, 2005.

Filed under: attorneys general, ethics, law enforcement for profit, Mississippi

September 23 roundup

Lawyers in Iowa suit against Microsoft bag $75 million [ComputerWorld, ABA Journal; earlier antics in case here, here, here, and here]

Not a parody: Santa Cruz, Calif. says smoking in the park’s OK so long as its pot, not tobacco [Mercury-News via Bader]

L.A.’s big payout in Tennie Pierce case (firehouse dog food prank) deemed “completely outrageous”, “‘best possible’ outcome” (or both?) [Patterico, more, John and Ken, LoneWacko, Holy Coast; earlier]

Suit by Paris, Tex. hospital seeks to uncover name of anonymous blogger [Houston Chronicle](& Coyote)

Global-warming litigation roundups [Associated Press, Daily Report, NJLJ/PoL, Horner @ NRO]

Sues American Cancer Society after slipping on step at charity fund-raiser [Madison County Record, more]

Have Islamic Society of Boston lawsuits chilled local media? [Boston Phoenix via Romenesko]

Four guilty pleas so far in case of West Orange, N.J.’s Seligsohn, Goldberger & Shinrod, which paid runners to bring in staged and non-existent auto accidents [NJLJ first, second reports]

New at Point of Law: war on terror “lawyered to death“?; Florida insurance craziness; subprime lending crusade; France’s “model” health care system would offer few chances to attorneys like John Edwards; Mississippi AG Hood says “the system is working” on outside contracts; Sen. Ted Kennedy’s new “Equal Remedies Act of 2007” would boost payouts in workplace suits; and much more;

Browser add-ons that help squelch ads may be headed for litigation [Broache & McCullagh, CNet]

Lottery winner’s curse? Among other woes since winning nearly $315 million in Powerball, Jack Whittaker says he’s been involved in 460 legal actions [Chicago Tribune]

Filed under: France, hospitals, Houston, Iowa, John Edwards, Madison County, Mississippi, roundups, tobacco