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NMC: Jones, Funderburg v. Scruggs: Judge rules no to arbitration AT THIS TIME

January 15th, 2008 @ 11:58 am - by NMC · 19 Comments

Update: Post amended as noted below

The heading was amended to add “at this time”. I was not in the courtroom; two people who were in the courtroom tell me that this is what occurred:

The court ruled that ordinarily, the case would go to arbitration, that the prior actions by the Scruggs defendants (which was ignoring the Jones demands for arbitration) were not sufficient to waive arbitration, but that the Jones motion for sanctions (which argued that the court should sanction Scruggs by entering a default judgment granting the Jones plaintiffs a right to their claimed fee) was not an arbitration matter and he was going to hear that motion before any referral to arbitration. The court said there will be no fact hearing before February 25th (the date of the criminal trial) but could be legal arguments.

The judge presented an opinion which he had not yet signed. He has since signed it.

Changes: The original post noted that one of my sources found the hearing confusing; the post has been substantially edited based on another eyewitness and to clarify and to include the court’s opinion on arbitration.

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Filed Under: Herald & Examiner

19 Responses so far ↓

  1. Once again another NMC scoop. If we email you pardner will you maintain our identities in strict confidence?

  2. lotus says:

    Cowboy, you can rest assured on that score, I’ll vouch.

    Now then, just in from Alyssa:

    All kinds of good stuff so far this morning. Patterson pleads and the Government read off the “facts of the case” and it’s got P.L. Blake’s name alllll over it. Was only me and the AP guy there so … gimme a few, I’m on deadline and I’ll send you some stuff.

    Hot ZIGGY, jim — here we go after those circles and cycles!

  3. nmisscommenter says:

    Alyssa’s comment will make some theorizers-in-comments very happy campers.

  4. lotus says:

    I’ll warrant, NMC.

  5. lotus says:

    NMC, if you have a few spare minutes here, could you “English” some of the Legal in this post for us a leetle more? (You or any lawyer who has time? Much thanks.)

  6. Stormy says:

    Hey Lotus it might be a good idea for someone in the “know ” to do us dummies an “Org. – Chart”….. What ya thank?

  7. lotus says:

    What I think, Stormy, is YER RIGHT.

    And somebody has.

    And jes’ soon’s we get it together, I’m slappin’ it up here for us.

  8. nowdoucit says:

    “…That Plaintiffs failed to initiate arbitration as required by AAA rules…”

    Stunning, simply stunning to reach this point and have the Judge point that out.

  9. lotus says:

    nowdoucit, as a friend of mine puts it, “Mind, meet Boggle.”

  10. Really basic question: Who are the plaintiffs in this excerpt:

    " "That Plaintiffs failed to initiate arbitration as required by AAA rules " "

    Thanks,
    LD

  11. nmisscommenter says:

    Jones, Funderburg– Tollison’s client, who were suing Scruggs and his fellow Katrina groupies.

  12. jim says:

    Well Lotus it will be most interesting to say the least. Balducci = buried bodies, P.L. Blake = another damn graveyard. I just wonder if Dickie and/or P.L. find their lost memory regarding their agreement?

  13. Not At All Surprised says:

    IMHO, it looks like the court deferred the decision on arbitration pending the outcome of the criminal case, at which time he could grant the motion for sanctions and, as a sanction, make the finding that the defendants have waived the arbitration clause.

  14. nmisscommenter says:

    Kinda/sorta, NAAS– there was some backpedaling about whether the motion to continue filed in the criminal case changed the judge’s ruling, and the judge made clear he’d hear legal arguments before the 24th of Feb. The soft delay seemed responsive to the argument by the Scruggs lawyer that Scruggs not be forced to make the decision of whether to testify or assert the fifth amendment while facing the criminal prosecution.

  15. Around Town says:

    This ruling certainly sucked the wind out of Scruggs, et. al. To think, the case would be headed to arbitration (their preferred method of resolution) save the sanctions hearing which arose from the attempted bribe of Judge Lackey in which they tried to have him enter an order sending the case to arbitration. Wow.

  16. Around Town says:

    Not to mention the criminal ramifications. All I can think is “idiots.”

  17. nmisscommenter says:

    You’re right, Around Town.

  18. Jones, Funderburg … Tollison’s client, who were suing Scruggs and his fellow Katrina groupies.

    Thanks, NMC for that clarification .

    ld

  19. nah says:

    In my view, this ruling very significantly undermines the criminal case. Where’s the motive? Why would anyone bribe a judge to do what the law requires anyway? If your best argument against these very succesful attorneys is that they are “idiots,” as a poster above comments, that’s pretty weak.