Scruggs In Another Judge Case With Insurance Ties

Scruggs In Another Judge Case With Insurance Ties

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.

P&C Insurance News
1/20/9