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Famous
Lawyer Who Bribied Judge
Faces Ex-Partner Looking for $15 Million Over Fees
By Julie Kay
The National Law Journal
New York Lawyer
April 25, 2008
Now that Dickie Scruggs has pleaded guilty to bribing a
judge, his former partner, Roberts Wilson, is seeking more
than $15 million in damages in another fee dispute case and wants
that case essentially re-started.
Hinds County Court Judge
Bobby DeLaughter ruled in favor of Scruggs in a fee dispute case
over $15 million in legal fees for asbestos cases.
DeLaughter has been
officially suspended and is being investigated by the U.S.
Department of Justice for allegedly taking a bribe from Scruggs in
exchange for that ruling. Two of Scruggs' cohorts have already
pleaded guilty to a scheme that involved Scruggs offering DeLaughter
a federal judgeship in exchange for the favorable ruling.
Scruggs' brother-in-law,
Trent Lott, allegedly recommended DeLaughter for the judgeship, to
which DeLaughter was never appointed.
Lott has denied wrongdoing
and Scruggs has not yet been charged with anything in the DeLaughter
case.
Alleging the entire case is
now tainted, Wilson wants all Scruggs' pleadings after January 2006
stricken. He is seeking more than $15 million in damages, plus
interest for 14 years, expenses, attorneys fees and punitive
damages.
In a motion for sanctions
filed April 22, Wilson's attorneys revealed startling facts about
the alleged bribery scheme, including the allegation that DeLaughter
allowed Scruggs' associates to author the scheduling order for the
case.
In a stunning reversal of
fortune for one of the most celebrated plaintiff attorneys in the
country, Scruggs recently pleaded guilty in federal court in Oxford,
Miss., to trying to bribe a judge to get a favorable ruling in
another fee dispute case. He is facing 15 years in prison and
awaiting sentencing.
Scruggs' attorney, John
Keker of San Francisco's Keker & Van Nest, declined to
comment.
Firm
Entitled to Fees
Punitives Because Opposing Counsel Tried to Bribe Judge
New York Lawyer
April 16, 2008
OXFORD, Miss. (AP) - A
Jackson law firm is entitled to fees and perhaps punitive damages
because opposing attorneys in a lawsuit conspired to bribe the judge
in the case, a judge ruled Wednesday.
How much the Scruggs
Katrina Group will have to pay the Jackson law firm of Jones,
Funderburg, Sessums, Peterson and Lee has not been determined.
Attorneys will return to court Nov. 12 in Oxford to begin process.
The judge, Henry Lackey,
cooperated with federal authorities and received $40,000 to rule
favorably for Richard "Dickie" Scruggs and his law firm in a lawsuit
about the division of $26.5 million in legal fees from Hurricane
Katrina insurance case settlements.
The Jones firm claimed it
was owed a larger share of the fees. This also was the lawsuit on
which Lackey was presiding in Lafayette County when he was
approached by then-New Albany attorney Timothy Balducci for the
favor.
On Wednesday, Special
Circuit Judge William Coleman, who took over in the case after
Lackey stepped aside, agreed the Jones firm had been harmed by the
bribery scandal and were owed reasonable attorneys fees and expenses
they incurred in the lawsuit.
"This is exactly what we
wanted," said Jones attorney Roy Percy after the hearing.
The conspirators' action
"strikes at the heart of the judicial system," Coleman said.
Scruggs attorney Cal Mayo
of Oxford, who said he had not yet talked with his client about
Coleman's order, said an appeal is possible.
"Any attorney for any
client should be concerned about punitive damages," Mayo said.
Richard Scruggs, his lawyer
son Zach, their legal associate Sidney Backstrom, Balducci and his
associate, former state Auditor Steven Patterson has each has
pleaded guilty to one count of conspiring to bribe Lackey. They
await sentencing.
Famed Lawyer's Son Pleads
to Guilty Knowledge, Could Avoid Prison
By Jack Elliott Jr.
The Associated Press
New York Lawyer
March 24, 2008
The last defendant in the bribery case that brought down powerful
plaintiffs attorney Richard "Dickie" Scruggs -- his son -- pleaded
guilty Friday in a deal with federal prosecutors that could keep him
out of prison.
Zach Scruggs pleaded guilty to misprision of a felony, which
means he had knowledge of a felony but didn't report it. He, his
father and three others were originally charged with conspiring to
bribe a judge in a dispute over $26.5 million in legal fees.
In federal court in Oxford, Miss., Scruggs said Friday that he
had no knowledge of an attempt to bribe the judge and would have
stopped it if he had known. However, he said he knew that another
lawyer had "improper contacts" with the judge and that he had a duty
to report them.
"I am truly and humbly sorry for that, and I apologize to the
court, to the legal profession I love so deeply, and to the people
of the state of Mississippi," Scruggs told U.S. District Judge Neal
Biggers, according to a transcript of the proceedings.
"Of course," Biggers responded, "the legal profession that you
say you love so much, you will not be a part of it the rest of your
life."
Misprision of a felony carries a three-year maximum prison
sentence, but prosecutors are recommending probation for Zach
Scruggs, 33. He could also be fined up to $250,000. Biggers said he
expected to sentence Zach Scruggs in about six to eight weeks.
Todd Graves, an attorney for Zach Scruggs, declined to comment
Friday.
Dickie Scruggs, the "King of Torts" behind legal settlements that
extracted billions of dollars from the tobacco and asbestos
industries, among others, pleaded guilty last week to conspiring to
bribe a judge. He faces up to five years in prison, and the
Mississippi State Bar has filed a petition to disbar him.
Scruggs' law partner Sidney Backstrom, attorney Timothy Balducci
and former Mississippi State Auditor Steve Patterson also pleaded
guilty to conspiracy charges. Backstrom also faces disbarment, and
Balducci has given up his law license. A message seeking comment
from the bar on whether it intends to file a petition to disbar Zach
Scruggs was not immediately returned Friday.
The men were charged with conspiring to pay a judge $50,000 in a
dispute over $26.5 million in fees from a settlement of Hurricane
Katrina insurance lawsuits. The judge reported the bribe overture to
the FBI and worked as an informant.
Joseph Langston, a lawyer who initially represented Dickie
Scruggs in the bribery case, pleaded guilty in January to conspiring
with the elder Scruggs to bribe a different state judge in an
unrelated lawsuit over fees from asbestos litigation.
Dickie Scruggs hasn't been charged with trying to illegally
influence Hinds County Circuit Judge Bobby DeLaughter in that other
fee dispute. DeLaughter has denied any wrongdoing and defended a
ruling that favored Scruggs.
On Wednesday, Mississippi's judicial watchdog agency filed a
complaint against DeLaughter and recommended suspending him from the
bench while it investigates judicial misconduct allegations.
Associated Press writer Michael Kunzelman in New Orleans
contributed to this story.
Judicial Watchdog Howling for
Suspension of Judge Linked to Dickie Scruggs
By Michael Kunzelman
The Associated Press
New York Lawyer
March 20, 2008
Mississippi's judicial
watchdog said its efforts to suspend a state judge while it
investigates allegations that powerful plaintiffs attorney Richard "Dickie"
Scruggs tried to illegally influence him are not "a finding of
judicial misconduct."
The state Commission on
Judicial Performance filed a complaint Wednesday against Hinds
County Circuit Judge Bobby DeLaughter and asked the Mississippi
Supreme Court to temporarily suspend him from the bench.
In January, attorney Joseph
Langston pleaded guilty in federal court to conspiring with Scruggs
to illegally influence DeLaughter in a dispute with other lawyers
over fees from asbestos litigation.
Last Friday, Scruggs
pleaded guilty to conspiring with others to bribe a different state
judge in a separate dispute over attorneys' fees. Scruggs hasn't
been charged with any wrongdoing in connection with DeLaughter.
DeLaughter
has denied any wrongdoing and defended a ruling that favored Scruggs
in the asbestos fee dispute. The judge did not immediately return a
call to his office Wednesday.
DeLaughter,
a former assistant district attorney, prosecuted Byron De La
Beckwith in the early 1990s for the 1963 murder of NAACP field
secretary Medger Evers.
DeLaughter
was assigned to preside over a case involving a dispute between
Scruggs and other lawyers over fees from asbestos cases.
Federal prosecutors claim
Scruggs dispatched intermediaries in 2006 to tell DeLaughter that if
he ruled in his favor, he would pass along his name for
consideration for a federal judgeship.
Former Hinds County
District Attorney Ed Peters, a friend of DeLaughter's, later passed
that information along to DeLaughter, prosecutors said. DeLaughter
allegedly e-mailed to Peters a rough draft of a planned opinion in
the Scruggs case.
"I have not taken any
bribes of any sort. Have not issued any rulings in exchange for
money or anything else," DeLaughter told The Associated Press in
January. "If one were to go back and look at my very lengthy and
detailed ruling, I think it would be very evident ... they are on a
solid legal basis and would stand any scrutiny."
Scruggs is a brother-in-law
of former Sen. Trent Lott, R-Miss., whose duties included
recommending nominees for federal judgeships.
Lott's former chief of
staff has said the senator spoke to DeLaughter and other potential
candidates about a vacancy in the federal court system, but
supported Halil "Sul" Ozerden, who was sworn in as a federal judge
in Mississippi last year.
However, the commission's
complaint says Lott "did in fact submit (DeLaughter's) name for the
federal position and so notified (him). (DeLaughter) was also fully
aware that Scruggs was the brother-in-law of Senator Lott."
DeLaughter
violated the state's code of judicial conduct by not notifying the
proper authorities of those "improprieties of counsel" and failing
to recuse himself from the case, the commission's complaint alleges.
"The purpose of the
recommendation is to preserve the integrity and independence of the
judiciary and to assure the public confidence in the administration
of justice," said Brant Brantley, the commission's executive
director, in a written statement.
Brantley declined to
elaborate Wednesday on the allegations in the complaint.
Miss.
Attorney Pleads in Bribery Case
By Emily Wagster Pettus
Associated Press
March 14, 2008
JACKSON, Miss. (AP) -
Powerful plaintiffs' attorney Richard "Dickie" Scruggs and a
co-defendant pleaded guilty Friday to conspiring to bribe a
judge for a favorable ruling in a case involving legal fees from
a post-Hurricane Katrina lawsuit.
The surprise plea came Friday during a hearing in Oxford, Miss.
on pretrial matters, court officials said. A trial was set to
begin at the end of the month.
Scruggs, 61, and co-defendant Sidney Backstrom both pleaded
guilty to conspiracy to defraud the United States. Scruggs' law
partner and son, Zach, also is charged in the case but did not
enter a plea and is expected to go to trial.
Prosecutors said they would recommend five years in prison for
Scruggs and 2 1/2 for Backstrom, penalties significantly lower
than what they could have faced.
One of the best-known trial lawyers in the country, Scruggs was
indicted along with his son and three associates in November.
They were accused of conspiring to pay a Lafayette County
Circuit Court judge $50,000 for a favorable ruling in a dispute
over $26.5 million in legal fees from a mass settlement of
Hurricane Katrina cases.
Judge Henry L. Lackey reported a bribe overture to the FBI and
worked undercover. Two of the men who were indicted, attorney
Timothy Balducci and former Mississippi State Auditor Steve
Patterson, pleaded guilty and began working with the
prosecution. Balducci admitted to the FBI that he paid Lackey
$50,000 in cash and says he did so at the behest of the Scruggs,
his son and Backstrom. However, Backstom, Scruggs and his son
had said Balducci acted on his own.
Scruggs - a former Navy fighter pilot known as a risk-taker in
high-profile legal cases - is a brother-in-law of Mississippi
Sen. Trent Lott and has made millions from tobacco and asbestos
litigation.
Scruggs helped negotiate a landmark multibillion-dollar
settlement with tobacco companies in the 1990s, working with
whistleblower Jeffrey Wigand, a former tobacco company
scientist. The actor Colm Feore played Scruggs in the 1999 movie
about the case, "The Insider," starring Al Pacino and Russell
Crowe.
After Katrina, the Pascagoula, Miss., native sued insurance
companies on behalf of hundreds of homeowners whose claims were
denied after the 2005 storm. Lott was one of his clients.
A graduate of the University of Mississippi, he is one of the
school's largest donors. The music department building at Ole
Miss bears his name.
He is also is a player in national politics. Bill Clinton was
headed to Scruggs' home for a Dec. 15 fundraiser for Hillary
Clinton, but the event was canceled after the indictment.
Scruggs has also made plenty of enemies. One is Mississippi
Insurance Commissioner George Dale, who lost an re-election bid
last year after 32 years in office.
Scruggs accused Dale of being too cozy with insurers after
Katrina, and took out a newspaper ad depicting Dale as a pig
covered with pink lipstick by State Farm executives. The
caption: "Lipstick on a Pig."
The Legal
Trail in a Delta Drama
By Nelson D. Schwartz
The New York Times
January 20, 2008
OXFORD, MISS. — ON a crisp,
sunny morning last week,
Mississippi’s political
elite gathered in Jackson for a day of celebration. They began with
a gospel prayer breakfast before proceeding to the state Capitol to
witness the swearing-in of
Haley Barbour for a second
term as governor.
At the same moment on
Tuesday, 170 miles north of Jackson, a very different kind of
political theater was unfolding at the federal courthouse here. A
former Mississippi state auditor, Steven A. Patterson, stood before
a rapt courtroom and pleaded guilty to a charge of conspiracy.
Prosecutors said he had worked with Richard Scruggs, arguably the
country’s best-known plaintiff’s lawyer, to bribe a local judge to
rule in Mr. Scruggs’s favor in a fee battle with another lawyer.
Mr. Patterson’s plea — and
his agreement to cooperate with prosecutors — significantly ratchets
up the pressure on Mr. Scruggs, who was indicted on federal
conspiracy and bribery charges in November.
To make matters worse, one
week earlier, a former lawyer for Mr. Scruggs, Joseph C. Langston,
pleaded guilty after prosecutors alleged that he had tried to
influence a different judge on Mr. Scruggs’s behalf in a separate,
earlier dispute with another lawyer over money.
Linking Mr. Scruggs, Mr.
Patterson and other figures in the case is an obscure former college
football star, farmer and politically well-connected adviser to Mr.
Scruggs named Presley L. Blake. At the hearing on Tuesday,
prosecutors described Mr. Blake as a key go-between in an elaborate
bribery plot, and they are now examining his ties to Mr. Scruggs. No
charges have been brought against Mr. Blake.
The story of Mr. Blake, who
has received at least $10 million from Mr. Scruggs, threatens to
reveal just how Mr. Scruggs worked the political back rooms of
Mississippi — and Washington — to win a huge settlement with
cigarette makers that garnered him approximately $1 billion in fees
as well as a role in "The Insider," the 1999 movie about the battle
with Big Tobacco.
Mr. Scruggs’s connections
have never been a secret: his brother-in-law is former Senator
Trent Lott, Republican of
Mississippi. But the expansion of the investigation is especially
significant because for Mr. Scruggs, law and politics have been
closely intertwined.
Indeed, prosecutors plan to
cite the political influence brought to bear by Mr. Scruggs, who
once boasted that lawsuits are "won on the back roads long before
the case goes to trial," when his own trial begins on March 31.
Rather than courtroom
victories against the tobacco makers, legal experts say, it was Mr.
Scruggs’s ability to put together a coalition of state officials and
Washington politicians, while adeptly courting the news media, that
ultimately forced cigarette makers to pay up in the landmark $248
billion national settlement.
Mr. Scruggs declined to
comment for this article. But his lead defense lawyer, John Keker,
says Mr. Scruggs was unaware of any bribery attempts and is
completely innocent.
Now, the fate of Mr.
Scruggs is being watched closely by advocates of tort reform as well
as lawyers and industry leaders, who have all found themselves in
his cross hairs over the last two decades. "He stands for the
proposition that the halls of justice can become the arena for
pressing public policy goals," says David M. Bernick, a partner at
the firm Kirkland & Ellis, who has represented the tobacco industry.
"People want to know the reality of how he came to be so
influential."
The cast of characters in
the case against Mr. Scruggs may seem like a tableau of the
small-town South — Mr. Patterson, for example, resigned after trying
to evade automobile taxes, and was recently criticized by the local
bar association when it suggested that he was trying to pass himself
off as a lawyer in New Albany, Miss.
While Mr. Patterson has
been a well-known political figure in Mississippi for years, his
friend and duck-hunting buddy Mr. Blake has kept a much lower
profile. Better known as P. L., Mr. Blake has political roots as
thick as the soil of the rural Mississippi Delta region, where he
grew up along the banks of the Tallahatchie River in Leflore County.
Over the last three
decades, he aided the campaigns of some prominent Mississippi
politicians, getting out the vote for Mr. Barbour and Mr. Lott,
among others, and has retained his political influence despite a
bank fraud indictment in the 1980s. Represented in that case by
Fred D. Thompson, then a
prominent Tennessee lawyer and now a candidate for the Republican
presidential nomination, Mr. Blake eventually pleaded no contest to
a misdemeanor.
In a 2004 deposition taken
in a lawsuit over legal fees that involved many of the same players
as the current criminal case, Mr. Scruggs confirmed that he paid Mr.
Blake at least $10 million in fees from the tobacco settlement, but
precisely what Mr. Blake did to earn that money is now emerging as
an important question. In his own deposition in the same lawsuit,
Mr. Blake suggested that the money was for collecting newspaper
clippings on the tobacco case for Mr. Scruggs.
Michael C. Moore, the
former attorney general of Mississippi who worked closely with Mr.
Scruggs on the tobacco settlement, says he was "astounded" when he
learned of Mr. Blake’s payday. "It doesn’t surprise me that Dick
would pay him some money, but it’s hard for me to believe that much
money would go to P. L. Blake," says Mr. Moore.
In interviews, other
Mississippi political figures suggest that Mr. Blake has played a
key role for Mr. Scruggs over the years. "P. L. essentially has done
all the back-room negotiating for Dickie, but you’ll never see his
tracks," says Pete Johnson, a former state auditor who is now
co-chairman of the Delta Regional Authority, a federal agency with
headquarters in Clarksdale, Miss. Mr. Johnson, who lobbied the
Mississippi Legislature on Mr. Scruggs’s behalf when he was gearing
up for the tobacco fight, recalls that his first introduction to Mr.
Scruggs came through Mr. Blake in the early 1990s.
"He was the outside
confidant that Dickie needed," Mr. Johnson says. "He was the nexus
of his political network."
Mr. Blake, who now lives in
the Birmingham, Ala., area, did not return repeated calls to his
home there.
Although Mr. Scruggs has
known Mr. Blake for more than two decades, the hearing last Tuesday
was the first time prosecutors had publicly linked the two. And the
role they suggest that he played echoes Mr. Johnson’s description.
On Oct. 16, six weeks
before the indictment, Mr. Scruggs met with Mr. Patterson and
Timothy R. Balducci, a local lawyer who had represented Mr. Scruggs
in several past cases. When they entered Mr. Scruggs’s office on
Courthouse Square in Oxford, according to an account presented in
court by Robert H. Norman, an assistant United States attorney, Mr.
Scruggs stated: "I know y’all have talked to P. L., and I have
talked to P. L. Everything’s fine. Y’all are going to be covered."
Mr. Blake’s name also
popped up in an earlier phone call between Mr. Patterson and Mr.
Balducci that was taped by investigators. In that conversation, from
which prosecutors quoted in court, Mr. Patterson told Mr. Balducci
that Mr. Scruggs and Mr. Blake had met and that Mr. Blake "knows
it’s going to be 40," apparently a reference to the $40,000 bribe
they are accused of planning to give the judge. In the recording,
Mr. Patterson told Mr. Balducci that Mr. Blake was confident that
Mr. Scruggs would "take care" of them, adding, "We got your horse
sold."
The state judge, Henry L.
Lackey, alerted federal prosecutors in Oxford after he was initially
approached by Mr. Balducci last spring, and he worked closely with
them during the investigation in the summer and early fall. Like Mr.
Patterson, Mr. Balducci has pleaded guilty and has agreed to
cooperate with prosecutors. Along with Judge Lackey, both are likely
to testify at the trial.
Mr. Norman, and Thomas W.
Dawson, the lead prosecutor on this case, declined to discuss Mr.
Blake beyond the information presented in court. But lawyers close
to the investigation, who asked not to be identified because the
investigation was under way, confirm that prosecutors are examining
Mr. Blake’s ties with Mr. Scruggs and have already subpoenaed
documents from past court battles linking the two men.
UNTIL his name surfaced in
the Scruggs case last week, Mr. Blake rarely made the local papers,
despite his vaunted political connections. Much of what is known
about him is drawn from the depositions in a long-running dispute
over asbestos fees that Mr. Langston recently admitted trying to
influence, a dispute that now threatens to further complicate Mr.
Scruggs’s legal worries.
Mr. Blake first drew public
attention four decades ago, as a football star at
Mississippi State University.
After graduating in 1959, he played professionally in Canada before
returning to the Delta to farm, raising catfish and crops while also
prospering in grain storage and real estate.
At the same time, Mr. Blake
also cultivated political connections, becoming a local political
ally of James O. Eastland, a onetime Delta planter who became a
Mississippi political legend and served as a United States senator
for 36 years before his retirement in 1978. In a 2004 deposition,
Mr. Blake said he also had known Senator Lott for 25 to 30 years,
stating "I would classify him as a friend."
Despite these political
alliances, Mr. Blake soon ran into a series of legal and financial
troubles. In the mid-1980s, he declared bankruptcy and faced
foreclosure of his farmland. In 1987, he was indicted on charges
that he had paid money to officials of a local bank in order to
obtain loans. Although the original six counts were later dismissed,
he eventually pleaded guilty to a single misdemeanor charge.
But in a lucky turn of
events, Mr. Blake turned to Mr. Scruggs for help in the bankruptcy
case. (Mr. Thompson and a Mississippi lawyer, Tommy McWilliams,
handled the criminal charges.)
In the 2004 deposition, Mr.
Blake recalled that during this time he became "very close friends"
with Mr. Scruggs, who in turn lent him $750,000. As Mr. Scruggs’s
asbestos caseload increased and settlement proceeds rolled in, he
began to rely on Mr. Blake for political advice on how the asbestos
litigation was viewed in the Mississippi and Louisiana legislatures.
Mr. Blake was soon
consulting on tobacco as well, but here more political expertise was
needed than it was for the asbestos claims. Instead of suing
companies on behalf of individual plaintiffs, Mr. Scruggs’s novel
legal approach called for the state of Mississippi to recover from
the tobacco industry a portion of what it had spent treating
smoking-related illnesses. After an introduction by Mr. Blake, Mr.
Scruggs hired Mr. Johnson, the former state auditor, to lobby
Mississippi legislators and shaped a bill to allow him to represent
the state; the legislation quickly passed.
By his own account, Mr.
Blake simply kept his ear to the ground for Mr. Scruggs while also
monitoring press reports. "I got those articles or information or
anything else and passed them on to him and gave him my opinions
about it because he would always ask," he explained in a deposition
in August 2004.
The work may have been
simple, but the rewards were swift. After the settlement with the
tobacco industry in 1998, Mr. Blake said, he began to receive
quarterly payments of $468,000. Since the fees are expected to be
paid out over a two-decade period, Mr. Blake could ultimately
receive $50 million.
At his 2004 deposition, Mr.
Langston provided what might be a clearer version of just how Mr.
Blake fit into Mr. Scruggs’s operation. "I know that Mr. Blake
seemed to be Dick Scruggs’s — his switchboard, I call it, you know.
Everybody, not everybody, but a lot of people wanted to be involved
with Scruggs on tobacco, and I got the impression that P. L. Blake
was kind of a filter for a lot of those people. I also got the
impression he was Dick Scruggs’s listening post."
According to depositions, a
$10 million payment to Mr. Blake was funneled to him via the bank
account of Mr. Langston, the former lawyer for Mr. Scruggs who
pleaded guilty on a separate judicial bribery charge this month.
But Mr. Blake’s contacts
weren’t limited to Mississippi or to the South. According to a
deposition by Mr. Moore, the former Mississippi attorney general,
Mr. Scruggs told him, "Blake would call and provide, usually,
political information, especially when we were dealing with
Congress."
Even more impressive, Mr.
Moore said, "it seemed that he was talking directly to the tobacco
industry or directly to the
Republican Party, because
every time he gave us information, it was right-on, and we were able
to react on it and be ahead of what those guys were doing. So it was
pretty valuable."
Mr. Patterson, whose plea
on Tuesday brought Mr. Blake’s name into the limelight, is a
longtime friend of Mr. Blake, according to his 2004 deposition. And
in a second deposition of Mr. Blake in 2005, which has not been made
public but was reviewed by The New York Times, Mr. Blake states that
he lent Mr. Patterson "a lot of money."
"And I have donated to his
campaigns," he added. "Steve is a friend."
In court last week and at
his office, Mr. Scruggs said he could not comment on the case or on
his history with Mr. Blake, adding, "I hope you’ll understand."
Despite the legal threat — he faces a maximum of 75 years if
convicted — Mr. Scruggs’s Southern hospitality was in evidence, as
he welcomed a reporter to his spacious workplace and inquired into
how he liked Oxford.
Like much of the rest of
Mississippi Oxford has a small-town feel. Mr. Scruggs’s office is
just a five-minute walk from where
F.B.I. agents are examining
about 150 recorded conversations while following other leads,
including allegations that Mr. Scruggs is connected to an effort to
bribe a second state judge. Just as close are the courthouse where
Mr. Scruggs will be tried and the Greek Revival bed-and-breakfast
where his lead lawyer, Mr. Keker, is staying.
That kind of small-town
proximity once benefited Mr. Scruggs enormously. Just down the
street, at the
University of Mississippi,
he first got to know Mr. Moore, as well as Governor Barbour, who was
then a fraternity brother of Mr. Scruggs at Sigma Alpha Epsilon.
"The governor doesn’t have
a dog in that hunt," says Pete Smith, Mr. Barbour’s press secretary,
of the case against Mr. Scruggs.
At Ole Miss, says Johnny
Morgan, another former fraternity brother and college roommate of
Mr. Scruggs who is a now a local county supervisor, "he was the one
person in the frat I considered beyond reproach."
"He made sure everybody
else was doing the right thing," Mr. Morgan adds. "Down deep, I know
he’s a good person."
Last Wednesday, one day
after Mr. Patterson’s guilty plea in the same courtroom, Mr.
Scruggs’s legal team provided the first detailed blueprint for his
coming defense. In a pretrial motion, the team argues that the idea
to bribe Judge Lackey came not from Mr. Scruggs, but from Judge
Lackey himself. "There’s no question that Judge Lackey solicited the
monetary bribe after six months of talking to Balducci without any
suggestion of a monetary bribe from Balducci," Mr. Keker says.
He adds that the government
did not disclose evidence from the tapes on which Mr. Balducci makes
it clear Mr. Scruggs didn’t know of Mr. Balducci’s attempt to bribe
Judge Lackey. At the same time, Mr. Keker argued that it was Judge
Lackey who was determined to draw Mr. Scruggs’s name into the
bribery allegation, despite protestations from Mr. Balducci.
Judge Lackey declined to
respond directly to Mr. Keker’s account but said, "It will all come
out at trial."
For prosecutors, it will be
crucial to link Mr. Scruggs to the actual bribery attempt, which is
why proving Mr. Blake’s role as a go-between will take on more
significance when the trial begins March 31.
In the deposition four
years ago, Mr. Scruggs described Mr. Blake as "a very valuable"
resource, who helped him figure out "who might be for me, who might
be against me." When the jury is eventually forced to figure out
whether it’s for or against Mr. Scruggs, the word of P. L. Blake
might help determine Mr. Scruggs’s fate.
Prosecutors: Judge Was Told That Ruling
for Star Litigator Could Be Ticket to the Federal Bench
By Michael Kunzelman
The Associated Press
New York Lawyer
January 18, 2008
A Mississippi judge who
ruled in favor of Richard "Dickie" Scruggs in a dispute over legal
fees was told by a friend that siding with the prominent lawyer
could mean consideration for the federal bench, prosecutors allege
in court papers unsealed this week.
Hinds County Circuit Judge
Bobby DeLaughter has denied accepting any bribes and defended his
ruling in favor of Scruggs in the dispute with other lawyers over
fees from asbestos litigation.
However, during a
closed-door proceeding in federal court last week, a prosecutor said
Scruggs dispatched intermediaries to tell DeLaughter that "if he
ruled in his favor he would pass his name along for consideration
regarding the federal judgeship."
Former Hinds County
District Attorney Ed Peters, a friend of the judge, later "passed
the information along" to DeLaughter, Assistant U.S. Attorney Thomas
Dawson told a U.S. district judge in Oxford, Miss., according to a
transcript.
"The government would
further show that, in fact, DeLaughter's name was submitted for
consideration for a federal judgeship, and DeLaughter was so
notified," Dawson added.
Scruggs is a brother-in-law
of former Sen. Trent Lott, R-Miss., whose duties included
recommending nominees for federal judgeships.
Dawson was outlining
charges against attorney Joseph Langston, who pleaded guilty Jan. 7
to conspiring with Scruggs and others to illegally influence
DeLaughter. Scruggs and DeLaughter aren't charged with wrongdoing in
the case.
Scruggs has pleaded not
guilty to trying to bribe another Mississippi judge in a separate
dispute over $26.5 million in attorneys' fees. John Keker, an
attorney for Scruggs, has denied that his client tried to influence
DeLaughter.
Court papers unsealed
Monday accuse Langston, Peters and former state Auditor Steven
Patterson of splitting $3 million that Scruggs saved "as a result of
rulings in favor of Scruggs by Judge DeLaughter resulting in a
settlement of the case."
In December 2005, Scruggs
hired Langston and attorney Timothy Balducci to represent him in the
asbestos-fees case, which was assigned to DeLaughter. Langston later
hired Peters and paid him $1 million.
In at least one instance,
according to Dawson, DeLaughter e-mailed to Peters a rough draft of
a planned opinion.
"And Langston and Balducci
and Patterson would be able to see it before any (final version) was
filed," Dawson added.
Balducci and Patterson have
pleaded guilty to trying to bribe Circuit Court Judge Henry Lackey
and are cooperating with investigators in their case against
Scruggs.
Hiram Eastland Jr., a
lawyer for Patterson, wouldn't comment on the prosecutors
allegations, but said his client is "fully cooperating" with
investigators.
Peters didn't immediately
return calls seeking comment Thursday.
Lott spoke to DeLaughter
and other potential candidates about a vacancy in the federal court
system, but the senator supported Halil "Sul" Ozerden, who was sworn
in as a federal judge in Mississippi in August, according to Lott's
former chief of staff, Brett Boyles.
DeLaughter did not
immediately respond to calls seeking comment Thursday. But in an
interview last week with The Associated Press, DeLaughter challenged
anyone who doubted his judicial integrity to read his ruling in the
case.
"I have not taken any
bribes of any sort. Have not issued any rulings in exchange for
money or anything else," DeLaughter said. "If one were to go back
and look at my very lengthy and detailed ruling, I think it would be
very evident ... they are on a solid legal basis and would stand any
scrutiny."
DeLaughter, a former
assistant district attorney, prosecuted Byron De La Beckwith in the
early 1990s for the 1963 murder of NAACP field secretary Medger
Evers.
Scruggs became a
multimillionaire by suing asbestos and tobacco companies in the
early 1990s. He set his sights on insurance companies after
Hurricane Katrina, suing on behalf of homeowners. His case against
tobacco companies was portrayed in the 1999 movie "The Insider."
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