A pair of admitted felons who once represented the State of Mississippi in court will again argue on Friday that their fight to preserve $14 million from a state settlement belongs in federal court.
The two also say the State, which filed suit on behalf of the Auditor’s office last year, should have complained during the 2005 settlement proceedings. The settlement, reached over allegedly owed back taxes, was worth $100 million.
“The State’s objection to the payment of legal fees to the Langston Law Firm, whether based on state law or anything else, was required, as a matter of federal law, to be raised in opposition to the 2005 Settlement Motion in the Bankruptcy Court,” a reply brief filed Aug. 8 says.
Second Circuit Court of Appeals Judge William Pauley will hear arguments Friday at 12:30 p.m. State Auditor Stacey Pickering maintains his position that his dispute is based in state law, with two federal judges having agreed with him so far.
Pickering says all of the settlement funds — including the Langston firm’s fees — should have been given to the state Legislature for appropriation. U.S. District Judge Arthur Gonzalez agreed it was a state issue, granting Pickering’s motion for abstention.
Pickering has filed his complaint in Hinds County Circuit Court.
“If the court rules in the position I think it will, then ultimately this case will go before the Mississippi Supreme Court when Hinds County does rule,” Pickering said Wednesday.
“We have to get a definitive answer as to the authority of elected officials outside the Legislature appropriating public funds. Do Langston and Balducci deserve compensation for the work they performed for the State? You betcha.
“My opposition is to the way they went about it. It was outside the parameters of Mississippi law.”
Legal Newsline
9/18/8
Magnolia Tribune
