Indicted Mississippi attorney Richard Scruggs and his law firm have stopped representing clients in disputes with insurers over Hurricane Katrina claims, it was announced last night.
The action follows last Wednesday’s federal indictment of Mr. Scruggs, his son Zachary and three associates for allegedly attempting to bribe a judge in an effort to fix the outcome of a dispute over $26.5 million in legal fees.
Notice of the move came in a letter and a Web site posting that was signed by three attorneys, not part of Scruggs Law Firm, who are part of the Scruggs Katrina Group, a combine of lawyers that has filed hundreds of suits arising from disputes over claims involving the 2005 hurricane.
“As you may be aware, criminal charges have been brought against the Scruggs Law Firm in North Mississippi. These charges are unrelated to your claims and to litigation against your insurers,” the letter said.
“The Scruggs Law firm has informed us that in the interest of its clients, it has withdrawn from the group of attorneys who represent your claims until these legal matters have been resolved and it is also withdrawing as counsel in your case if filed,” the letter continued.
“Members of the Scruggs Law Firm have assured us that they engaged in no wrongdoing and we are confident they will be cleared of the charges,” it concluded.
The lawyers who issued the letter told clients they are “committed to the same level of performance and professional expertise that have to date provided settlements to over 1,300 Katrina clients.”
Signing the message were: Don Barrett, Barrett Law Office, Lexington, Miss.; David H. Nutt, Nutt & McAlister, in Ridgeland, Miss.; and Dewitt Lovelace, Lovelace Law Firm, Destin, Fla.
In addition to Mr. Scruggs and his son, those indicted included Sidney A. Backstrom, Timothy R. Balducci and Steven A. Patterson.
They are accused of attempting to bribe Mississippi Circuit Judge Henry L. Lackey, who cooperated with the FBI in the investigation. If convicted of all charges, the defendants would face up to 75 years in prison and $1.5 million in fines.