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LNL – Scruggs’ actions...

LNL – Scruggs’ actions cause disqualification of former business partners

By: Magnolia Tribune - April 8, 2008

Scruggs’ actions cause disqualification of former business partners

Scruggs gave consulting jobs that carried $150,000 salaries to a pair of former Renfroe employees, Kerri Rigsby and Cori Rigsby Moran, the two sisters known for copying thousands of confidential documents and turning them over to Scruggs.

“I have determined that disqualification is required because Scruggs, acting in furtherance of the (Scruggs Katrina Group) joint venture, paid the Rigsby sisters a substantial sum of money (a consulting fee of $150,000 per year) despite Scruggs’ knowledge that the Rigsby sisters were material witnesses in connection with many hurricane damage claims that were likely to become the subject of litigation,” Senter wrote in his opinion.

“While Scruggs made the arrangements for these payments, the other members of the SKG joint venture knew or should have known that the payments were being made, and I am of the opinion that their failure to take timely and reasonable remedial steps or to object to this arrangement amounts to a ratification of Scruggs’ actions.”

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This article was produced by Magnolia Tribune staff.