Dickie Scruggs and the Scruggs Law Firm have filed suit in the U.S. District Court against the Zuckerman Spaeder law firm, over fees in the Rigsby case.
Recalling that this is the court where Scruggs was convicted (he’s I’m sure glad that Judge Biggers did not draw the case), I suppose the headline could be: Scruggs files in Northern District of Mississippi and asks court for equity.
Refresh my recollection about the clean hands doctrine?
Putting that aside, recall that back in December, the Rigsbys had been required to respond to Judge Acker’s order that they set forth exactly the nature of their indemnity agreement with Scruggs. Their Alabama attorneys responded that there was no written indemnity agreement, but that Scruggs had agreed to pay their fees, and that he’d signed on behalf of Scruggs Katrina Group that he would be liable for fees owed the Alabama attorneys and the Zuckerman firm. At the time, Scruggs had just been indicted, and David Rossmiller speculated what would happen to that agreement given the indictment:
The pleading says the attorney fees have been paid in large part out of SKG funds, and it also appears that Scruggs may have committed the SKG rather than himself as the indemnitor. In light of the Anita Lee story about the SKG declining to pay further consulting fees to the sisters, I wonder if they will also repudiate the attorney fee payments and the indemnity agreement itself. If so, that probably leaves the sisters with no agreement and dependent solely on Scruggs’ goodwill.
Rossmiller later noted Zuckerman moved to withdraw, and in doing so cited the inability of the Rigsbys “and others” to pay their fees.
Scruggs has now filed, through his attorney Cal Mayo, a declaratory judgment action (in the same court in which he was convicted, although a different judge drew the assignment) asking the court to declare that he and Scruggs Law Firm do not owe Zuckerman anything.
Here’s a copy of the Complaint in Scruggs v. Zuckerman.
Among the highlights:
- Scruggs got bills and sent them on to SKG.
- Starting in January, 2008, Zuckerman began demanding payment directly from Scruggs Law Firm and Scruggs personally.
- Zuckerman’s last invoice was for $1,717,333.16.
- Zuckerman should look to Katrina Group for payment after Scruggs left the partnership.
- The bill is unreasonable to the tune of as much as 4x the customary fee.
Uh, does this qualify as a pattern? (Luckey Wilson Jones and Zuckerman?)
Makes a body wonder about Keker’s fee arrangements, don’t it, DN?
I don’t know much, but I’d bet a pretty penny Keker got his money up front.
Something like http://www.prepaidlegal.com
I should probably add to that post that Zuckerman was paid for invoices in September and October. I do not know when they withdrew, but it’s pretty clear by March and probably before. They were not in any sense “lead counsel” as near as I can tell. And billed $1.4 mil.
Nice work if you can get it. Even better if you get paid.
Bet Mayo and Mallette got a pretty nice retainer up front, and if not, they deserve what they get. If there is no indemnity agreement in writing, can the sisters be on the hook for this? Needless to say they have the most shallow pockets of any of the players, but it probably still doesn’t make them sleep any better at night.
I nominate Mayo and Mallette for the “Johnny Jones Award,” to be awarded annually to otherwise decent guys who get sucked up into the Scruggs machine and have their heads turned by proximity to all that glittery cash. I mean, honestly Cal, couldn’t you just say “No”?
Beau’s question is interesting. The sisters and SKG probably should have been named as parties, since they do have interest in this. Perhaps Zuckerman will third-party them in . . . . .
does johnny jones have to share his fee?
His SKG fee, when he gets it? Not that I am aware, Lost, except with his lawfirm. Do you know different?
I know the Scruggs/Moore team is really tone deaf, but could this be a way for Scruggs to screw all SKG/KLG? Discovery looming large?