For insurers, the news is almost too good to be true! Richard“Dickie” Scruggs, scourge of the industry, the moving force behinda stampede of lawsuits over wind vs. water damage in HurricaneKatrina, was indicted yesterday on federal bribery charges.

As reported by our own Dan Hays (click here for the full story), Mr. Scruggs, along with four otherattorneys (one of whom was his son), is accused of conspiring tobribe a state court judge.

The news comes on the heels of another “stop the presses” momentthis week–the announcement by Sen. Trent Lott, R-Miss., that he'llbe leaving Congress before year's end. (See yesterday's blog entryfor details.)

Sen. Lott started pushing legislation to strip the industry ofits cherished antitrust exemption after suing State Farm on his ownKatrina claim. Who did he hire to represent him? The firm of hisbrother-in-law, Mr. Scruggs! (A funny alliance for a champion oftort reform like Sen. Lott, to be sure, but politics does indeedmake for strange bedfellows)

Of course, Mr. Scruggs is innocent until proven guilty. Butsince this is the second legal mess he's faced of late–this summer,criminal contempt charges were brought against him by specialfederal prosecutors in Alabama over his alleged mishandling ofevidence in a case against State Farm–he should have his handsfull. That means he'll have less time, perhaps, to go afterinsurers.

If anyone can get Mr. Scruggs off the hook, it's Mr. Scruggs. Heis a clever and resourceful attorney. But if he is convicted,insurers wouldn't shed any tears.