Scruggs comes to the Rigsbys' rescue

In court filings today, Scruggs and Scruggs Law Firm moved the court to release the security to satisfy the civil contempt charges.

In order to prevent the accumulation of any additional interest on the judgment, without waiver of the pending appeals and solely to pay the civil contempt sanction awarded in this action, Scruggs requests that the Court direct the Clerk to release to Renfroe the amount of $65,000, plus the interest having already accrued at the interest rate of 2.15% per year (as set out by this Court in the June 27, 2008 Order) from the date of the judgment until today, and release the remainder of the funds back to the Bainbridge, Mims, Rogers & Smith, LLP Trust Account.

But they are not waiving their right to appeal nor their right to recover the money if he wins on appeal.

Although Scruggs will comply with the Court’s order that the civil contempt judgment be satisfied immediately, Scruggs expressly reserves the right to prosecute its pending appeals of the civil contempt judgment to the Eleventh Circuit Court of Appeals, and does not waive any of its defenses. See, e.g., Graddick v. Newman, 453 U.S. 928, 945 n.1 (1981) (“Since property transferred or money paid involuntarily pursuant to a judgment can be recovered, execution of the lower court’s
judgment pending appeal normally does not render the case moot. These cases represent merely a particularization of the rule that issuance of a court’s mandate or obedience to its judgment does not bar timely appellate review.”); County of Dakota v. Glidden, 113 U.S. 222, 224-25 (1885) (“There can be no question that a debtor against whom a judgment for money is recovered, may pay that judgment, and bring a writ of error to reverse it, and if reversed can recover back his money.”); Ferrell v. Trailmobile, Inc., 223 F.2d 697, 698 (5th Cir. 1955) (“We think that the rule has long been established in the federal courts that payment of a judgment, of itself, does not cut off the payor’s right of appeal.”).

Since this release of the money would satisfy the contempt sanctions, I would think that the Rigsbys are off the hook from the court’s latest order on the matter.

Unless the judgment is paid within fourteen (14) days, the court will consider denying
defendants’ motions for summary judgment as a sanction.

Good job, Mr. Scruggs! Good job!

18 thoughts on “Scruggs comes to the Rigsbys' rescue”

  1. Hush!

    It’s totally consistent with what most people who worked with Scruggs over the years said about him- granted, a history very different from the public perception created by the few who had a different experience.

    I told duesouth yesterday that I thought he’d come through – and based that on comments from people all over the country that had worked with him that I found reported in media outside Mississippi.

  2. Right. Totally consistent that Scruggs don’t want them sistas spilling them beans ’bout how he encouraged their document purloining.

  3. Acker will some how screw this up and side with his Birmingham friends. It is not to often he rules against Renfroe/State Farm. Who is getting hush money Sid?

  4. You don’t know that it isn’t true. All you have is the sistas testimony — though it is clear that you need to believe that they were truthful. Sooner or later as the legal and financial screws associated with their document thievery are slowly turned tighter and tighter the sistas will decide to sing about their data dump conspiracy with Scruggs in order to save their own hides. It is just a matter of time.

  5. It would not do the sisters any good to perjure themselves, therefore I believe them. They had six figure jobs before, they didn’t need to do this.

  6. Six figure jobs? Whatever you say. I seriously doubt it and have never seen any testimony detailing their earning a reportable six-figure income before Scruggs enticed them into his scheme to steal SF documents during the dump weekend. Unless, of course, you mean both of the sistas combined made six figures.

  7. Sid, the six-figure incomes were reported several times in the past two years and not disputed.
    They were certified flood adjusters and managers of other Renfroe adjusters, and they worked Ivan for Renfroe/State Farm and then went into Katrina, so they definitely made much more than the average insurance adjuster in 2004 and 2005.

  8. Got a bonafide testimony link? I’ve not seen any proof provided in any testimony.

    If so, and I still doubt, too bad they threw away their careers by succumbing to the allure of Scruggs’s schemes to steal documents.

    The sistas are radioactive now. Unlikely they’ll make that $$$ again — if they ever did.

  9. Thanks for the backup, Brian, bellesouth headed out of town for the weekend and I suspect Sop is working his way down a pretty long list of weekend work. I’m about to tackle the same myself – which means I’m short on time to research a link, Sid, but will get to it as I can.

    You can check the left sidebar under legal for their depositions.
    I take it you admire the conduct of Renfroe and State Farm in handling Katrina claims.

  10. Sid,
    I am not on either side of the Rigsby sisters thing per se, but have known of catastrophe adjusters that worked pretty steady work and made between 100k-200k per year consistently. I do not doubt that they made “six figures” during the 04/05 storm seasons as busy as it was for carriers and cat adjusters. Their taxes would tell for sure and I think there was some discovery done on those in the Renfroe case, but last I heard they hadn’t been produced. I don’t ever remember seeing anything in their depos about the exact amount they made when they were with Renfroe. I would venture to guess that the amount they made working for Scruggs was compatable with what they made working for the Renfroe’s, with the main difference being the amount of work/hrs involved between the two different jobs. I addressed it before either here or another blog, but when they were with Renfroe they were probably worked at least 70-84 hrs a week for a good chunk of the time they worked after Katrina

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