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David Nutt and Bill Jones’s (et al.’s) new problem

December 14th, 2007 @ 8:57 am - by · 8 Comments

In Mississippi this morning, the big news is former state Attorney General Mike Moore’s Open Letter announcing that he’s backing away from the race to succeed Trent Lott in the U.S. Senate. As you see, initial reaction in this Clarion-Ledger thread is rather more favorable to the decision than to its maker and his writing style.

But in Scruggsiana this morning, the big news is a lawsuit filed on Wednesday against the firm of Scruggs Katrina’s Group major stakeholder, David Nutt. (That link is to the December 3 folo post “More Scruggs skinny, II,” which you might want to review now — and watch for Bill Jones.)

As reported by David Rossmiller, a former paralegal of Nutt & McAlister named Maria Brown is suing David Nutt and several others, both individually and as Nutt & McAlister the firm, for sexual harrassment, employment discrimination, breach of contract, wrongful termination, and some other claims.

Ms. Brown’s complaint (pdf) alleges not only horndawg behavior by men in the firm’s upper management (again, watch for Bill Jones) but that Nutt & McAlister knowingly kept electronic records of those State Farm claims documents (the Rigsby sisters’ haul) that Alabama federal judge William Acker ordered returned in a December 2006 preliminary injunction. When Dickie Scruggs failed to return his copies, recall, he drew that charge of criminal contempt-of-court that made him hire John Keker the first time.

Well, Maria Brown alleges that when she complained about their keeping rather than returning the records, name partner Mary (Meg) McAlister told her it was “okay” because these documents were “in the public domain” and “not part of the injunction” — and then they fired her for complaining about both sexual harassment and the “illegal activity … with regard to Judge Acker’s Preliminary Injunction.”

Okay, Rossmiller notes that because Judge Acker’s order required the Rigsby sisters “and their agents” to return all copies of documents they’d taken from claims contractor E.A. Renfroe, the legally-important question is whether Nutt & McAlister was then an “agent” of the Rigsbys, so obligated to comply with the order. “Prosecutors say that Scruggs, as their attorney, was their agent,” Rossmiller writes. “But even if the SKG rather than Scruggs himself paid the $150,000 per year consulting salaries of the Rigsby sisters, that makes them agents of the SKG, not vice versa.”

If, as Maria Brown alleges, Nutt & McAlister kept electronic copies when it sent back the paper ones, that doesn’t argue to Rossmiller that they truly believed this stuff was in the public domain. “Indeed,” he says,

… [s]ome of the documents might, in fact, have previously been used in litigation or given to the media, but that is not the same thing as saying this [exempts] them from Acker’s order. We do not know, from the allegations of the complaint, whether these electronic records purportedly were of all the 5,000 to 15,000 documents taken by the Rigsby sisters, or only some.

Again, it’s only one side of the story.

Very true — but Y’allPolitics-and-Rossmiller commenter “Justus,” reading this, surmises that neither Judge Acker, State Farm, nor E.A. Renfroe will be any better pleased with Nutt & McAlister than Maria Brown sounds, and all three may be about to be heard from again. “By the way,” s/he asks,

someone remind me, if one partner of a joint venture commits an act against a third party in the course of the joint venture’s business, wouldn’t that make “all of the partners” of the joint venture legally liable anyway?

Sounds probable to me, but does anybody here have a more certain answer for Justus?

Anyhoo, the Scruggsiana kudzu creepeth around a few new necks . . .

lotus

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Filed Under: Herald & Examiner

8 Responses so far ↓

  1. davidrossmiller says:

    In re-reading Judge Acker’s injunction, it applies to the Rigsby sisters “and their agents, servants, employees, attorneys and other persons in active concert or participation with them who receive actual notice of this order by personal service or otherwise . . . .”

    As Justus and other commenters have pointed out, it is hard to deny Nutt & McAlister was in active concert with Scruggs on at least one level, although only Scruggs represented the sisters as their lawyer. However, it was the Scruggs Katrina Group itself that paid their salaries as consultants, apparently, and it would appear othe SKG firms were given copies of the documents.

    The question then would become: did Nutt & McAlister have actual notice of the injunction. It would seem rather obvious that they did — any significant player in the SKG who was not aware of the injunction would be unacceptably out to lunch.

    That leaves a defense of jurisdiction of the Northern District of Alamaba over attorneys who were not involved in the Renfroe v. Rigsby case. But remember, Scruggs himself was not involved in that case and the court asserted jurisdiction over him. He did not represent the Rigsbies in the Renfroe lawsuit, someone else did. He was their attorney instead for purposes of Ex rel. Rigsby, the False Claims Act “whistleblower” lawsuit that for a long time was under seal (it was still under seal at the time the injunction was issued). So far Scruggs has not been successful in asserting lack of jurisdiction as a defense. One would assume the special prosecutors will want to look into the allegations.

  2. lotus says:

    Welcome to folo, David! And thanks for this meaty comment. Since you explain things better than I could dream of, would you please give our non-lawyer companions a brief primer on what “asserting jurisdiction over” and “a defense of jurisdiction” mean?

    Did you see, on your way in, the new post “upstairs”? I’d love to have your thoughts on that news as well.

  3. jim says:

    Bill Jones? There is a John Jones involved but who is Bill Jones?

  4. lotus says:

    Hi and welcome, jim.

    I didn’t realize it until you asked, but the hyperlink I made in this post’s second paragraph didn’t take. Now I’ve fixed it. Refresh this page and click on the “major shareholder” phrase. In the post that comes up, look for “Bill Jones,” and you’ll get as much of the whole story as I know so far . . .

    Sorry about that glitch.

  5. jim says:

    Thanks. I got it now . You are referring to Bill Jones the CPA and not Bill Jones th attorney in Jackson.

  6. lotus says:

    That’s right.

  7. jim says:

    The Biloxi Sun Herald has an excellent article on the front page of today’s paper–Sunday 12/16/2007.

  8. lotus says:

    The one on P.L. Blake? C’mon “upstairs” to the newest post — we’re talking about it there.