Posts Tagged ‘attorneys general’

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).

Child support collection, for a percentage

Once again, the combination of contingency fees and law enforcement spells trouble: an article by Tresa Baldas in the National Law Journal reports that controversy is mounting over the activities of private firms that go after noncustodial parents’ child support obligations in exchange for a percentage share of the bounty (“Suits collecting around child support collectors”, Sept. 17, no free link). “Critics of the industry — many of them lawyers — claim that private collectors of child support are engaging in predatory practices, such as charging excessive contingency fees as high as 50%, and using aggressive collection tactics that run afoul of federal laws.” The private agencies escape the scrutiny of federal debt collection laws and have been operating effectively without regulation, but state lawmakers are now moving to fill the gap, with 13 states having passed laws intended to protect the services’ clients (if not always their adversaries) by capping fees, prohibiting the agencies from collaring state-directed payments, and giving clients more leeway to withdraw from contracts.

Read On…

ADA bans lottery-ticket sales in smoking venues?

Make way for another creative application of the Americans with Disabilities Act: the office of Texas attorney general Greg Abbott says it could violate the ADA for the Texas Lottery Commission to permit sale of its lottery tickets in stores that allow smoking. “Lewisville resident Billy Williams complained to the commission in 2006 that he had an asthma attack after buying a ticket at a smoky store.” Abbott’s office found that the ADA requires that disabled residents be provided with “‘meaningful access’ to state services”, in this case consisting of lottery tickets, and that smoking-allowed policies at participating retailers could impair such access. (“Smoking questioned for stores that sell lottery tickets”, AP/Houston Chronicle, Nov. 9).

Lawsuit demands drugstores hire bilingual interpreters

Immigrant advocacy groups are filing a complaint with the New York attorney general’s office naming 16 pharmacies in Brooklyn, Queens and Long Island, claiming “that federal civil rights law and state health regulations require pharmacies to provide linguistic help” to “people who speak little or no English”. “That assistance should include interpreters at pharmacies and written translations of medication instructions, the advocates say.” The advocacy groups are New York Lawyers for the Public Interest, the New York Immigration Coalition and Make the Road New York.

It seems a creative reinterpretation of “national origin discrimination” has been going on for some time:

Health advocates have increasingly used federal civil rights law to push hospitals, nursing homes and clinics to provide language services. Language barriers to health services constitute discrimination based on national origin, they argue, a violation of federal civil rights law, which applies to hospitals because they receive federal funds through Medicare and other programs.

The latest effort aims to expand similar requirements to pharmacies.

As of the year 2000, according to one report, 138 languages were known to be spoken in the borough of Queens alone. (Anne Barnard, “Non-English Speakers Charge Bias in Prescription Labeling”, New York Times, Oct. 31).

October 15 roundup

  • Louisiana attorney general Foti, under fire over his attempt to prosecute Dr. Anna Pou in Katrina deaths, faces tough re-election challenge [Times-Picayune, Lafayette Advertiser; earlier]
  • Classic “Hershey’s liable to obese Americans” print satire now has a short audio version [Onion radio]
  • Criticize alternative medicine at your peril? U.K. libel law helps stifle an opponent of homeopathy [Orac]
  • Tennessee trial lawyers’ lobbyist comes under harsh public spotlight following lurid crackup of House Judiciary chair Rob Briley [Nashville Scene; earlier]
  • Invoking CAFA, judge throws out coupon settlement in Sharper Image air purifier class action [Krauss @ Point of Law]
  • In 4-4 split, Supreme Court lets stand a ruling that NYC must pay private school tuition for Hollywood exec’s ADHD son though he wouldn’t give city program a try; issue likely to return soon [NYTimes; earlier]
  • Veteran journalists Patrick Dillon and Carl Cannon ink deal for book on rise and fall of Lerach tentatively titled Circle of Greed [WSJ law blog]
  • Unforeseen consequences dept.: plan for retirement community catering to gays may be derailed by workings of antidiscrimination law [Miller, Independent Gay Forum]
  • HIPAA an impediment to doctor-patient emails? [CareCure Forums via KevinMD]
  • Update on fraudulent liens filed by prison inmates to harass court personnel (Mar. 31, 2004): system strikes back with extra 20-year term for one offender [Texas Lawyer]
  • EEOC says Massachusetts employer must accommodate eyebrow-ring-wearing employee who claims membership in “Church of Body Modification” [five years ago on Overlawyered]

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.

“Judge tosses global warming lawsuit against car makers”

A major rebuke for former California AG Bill Lockyer and his successor, Jerry Brown, as well: “A federal judge in San Francisco today threw out a lawsuit filed by the state Attorney General’s office against the six largest automakers in what had been billed as a novel attempt to hold the companies financially liable for global warming. … U.S. District Judge Martin Jenkins said it would be inappropriate for the court to wade into issues pertaining to interstate commerce and foreign policy – matters that should be left to the political branches of government.” The judge’s order can be found here (PDF). (Henry K. Lee, San Francisco Chronicle, Sept. 18)(cross-posted from Point of Law).

Podcast: The Role of State Attorneys General

The Federalist Society has posted a podcast of their recent panel:

Recently there has been growing discussion concerning the appropriate role of state Attorneys General. Some argue that state AGs have overstepped their boundary by prosecuting cases and negotiating settlements that have had extraterritorial effects, and sometimes even national effects. Others argue that state AGs are simply filling a vacuum left by the failure of others (for example, federal agencies) to attend to these issues. In light of this debate, the Federalist Society hosted a panel in Washington, D.C. featuring several state Attorneys General who discussed the proper role of state AGs.

Panelists included:

* Hon. Bob McDonnell, Attorney General of Virginia
* Hon. Donald Stenberg, former Attorney General of Nebraska; Erickson & Sederstrom
* Hon. John Suthers, Attorney General of Colorado
* Hon. J. B. Van Hollen, Attorney General of Wisconsin
* Ms. Peggy Little, Little & Little; Director, Federalist Society Pro Bono Center, Moderator

July 23 roundup

Something is Rotten in the State of Delaware

Why have some of the trial bar’s heaviest hitters in asbestos litigation infested Delaware – firms like including Simmons Cooper, Baron and Budd, and the Lanier law firm?

Why did the American Tort Reform Association (ATRA) place Delaware – which has always had a business-friendly reputation – on its “watch list” in the 2005 and 2006 editions of its “Judicial Hellholes” report?

One thing’s for sure – the trial bar’s legal talent isn’t circling Delaware because they love the state’s beautiful beaches.

The problem arises from a series of Delaware Supreme Court decisions that gave trial lawyers the green light to file hundreds of toxic tort cases. Out-of-state law firms are now busy turning Delaware into Ground Zero of the asbestos-litigation morass, but the overwhelming majority of plaintiffs have no connection to Delaware whatsoever. Approximately 80% of the plaintiffs in asbestos cases have never set foot in Delaware.

The numbers are startling. According to ATRA, in the year following May 2004 only 61 asbestos claims were filed in Delaware. But over the next 16 months, 272 asbestos cases were filed – a 345% increase. That number has now increased to 525 asbestos cases filed since May 1, 2005.

Due to this flood of lawsuits, the Delaware Superior Court has scheduled trials in as many as 85 cases to begin on a single day. The Court has also ordered defendants to try multiple cases in multiple courtrooms at the same time.

There are other warning signs. Delaware allows joint and several liability and has no limits on punitive damages. And newly-elected Attorney General Beau Biden is a former plaintiff’s asbestos lawyer.

Other states – such as Texas and Mississippi – have countered the flood of out-of-state lawsuits by enacting venue reforms – a measure that could help prevent the trial bar from turning Delaware into a “judicial hellhole.”

Steve Hantler