Scruggs In Another Judge Case With Insurance Ties

Imprisoned Mississippi attorney Richard “Dickie” Scruggs has been accused of involvement in another judicial bribe plot, this time involving $15 million in asbestos injury settlement monies and the help of a U.S. senator.

The claims against Mr. Scruggs, who gained national attention with class actions against property insurers and the tobacco industry, were contained in a federal lawsuit filed last week by Attorney William Roberts Wilson Jr.

That action names Mr. Scruggs, his law firm, his son Zachary, former attorney Edward Peters, attorney Timothy Balducci, non-attorney Steven A. Patterson and 10 John Does.

According to the complaint filed with U.S. District Court in Oxford, Miss., the jurist involved is Hinds County Circuit Court Judge Bobby B. DeLaughter in Jackson, Miss. A knowledgeable source said the senator referred to was Mr. Scruggs' brother-in-law Trent Lott, who has since retired from the Senate.

Mr. Lott is now with the Breaux Lott Leadership Group. A member of his firm, Bret Boyles, said Mr. Lott would have no comment. Calls and faxes to Judge Delaughter's chambers were not returned.

Mr. Wilson's latest charges against Mr. Scruggs date back to 2005 when he sued Mr. Scruggs in federal court claiming he had improperly channeled fees due Mr. Wilson from an asbestos injury settlement case and used them to finance his successful legal action against tobacco companies. Mr. Wilson contended he sought a portion of the multimillion-dollar tobacco settlement as a result.

But U.S. District Court Judge Tom S. Lee ruled he could not consider what Mr. Wilson might recover from the tobacco suit proceeds until there was a decision on Mr. Wilson's claim before Judge DeLaughter for the asbestos fees, which a special master for the court put at $15 million.

The complaint states that Mr. Scruggs with Timothy Balducci, Edward J. Peters, Steven A. Patterson, David Zachary Scruggs and non-parties Joseph C. Langston and others conspired to “influence and corrupt” the judge so he would render a zero judgment on asbestos fees.

Judge DeLaughter and “a former United States senator joined the conspiracy and agreed to aid and abet” Mr. Scruggs and the others, it was charged.

Mr. Langston, the attorney listed as a non-party in the suit, was accused a year ago in a criminal complaint filed by Mississippi U.S. Attorney Jim Greenlee of conspiring with Mr. Scruggs to influence Judge DeLaughter by arranging to provide “favorable consideration” for appointment as a federal judge.

According to the complaint against Mr. Langston, he and others engaged an unnamed “close personal friend” of Judge DeLaughter as “consultant” and Mr. Scruggs told Mr. Langston to tell Judge DeLaughter he could arrange for him to be considered for appointment as a federal judge.

In addition to being more prestigious, a U.S. District Court judge is paid $65,130 more than a Mississippi Circuit Court judge, whose annual salary is $104,170.

The information charged that Mr. Langston and Mr. Patterson, who is a defendant in the lawsuit, delivered $50,000 to the judge's friend, and that after Mr. Scruggs secured a favorable ruling Mr. Langston, Mr. Patterson and the judge's unnamed friend split $3 million “representing the savings to Scruggs” as a result of rulings in favor of Mr. Scruggs by Judge DeLaughter resulting in a settlement of the case.

Mr. Langston pleaded guilty to the charges against him and last month was sentenced to serve 36 months in prison. However, the date for his surrender has been extended until March, and there are reports that he is cooperating with prosecutors.

Mr. Greenlee's office had no response when asked about Judge DeLaughter.

Mr. Scruggs is currently in Federal Correctional Institute in Ashland, Ky., serving a five-year term for an attempted plot to bribe Circuit Court Judge Henry Lackey in Calhoun City, Miss., in a case involving a dispute over attorneys' fees in a $26.5 million Hurricane Katrina settlement.

Judge Lackey reported a $50,000 bribe offer to the FBI and cooperated with federal prosecutors.

Mr. Lott retired from office in 2007, two days before Mr. Scruggs was indicted in that case. According to Politico, the Republican senator said after the indictment, “I didn't know that he was under investigation. I never heard anything about it.”

Mr. Scruggs represented the senator in his claims dispute with State Farm over his coastal home, which was destroyed by Hurricane Katrina. Mr. Lott was active in pushing federal legislation to investigate claims handling of State Farm and other insurers after that storm.