From our friends at Phunk and Wagnalls h/t comes word of a settlement in another Scruggs fee dispute – this one Scruggs v Zuckerman Spaeder.
Why no surprise? We had a big clue in a footnote in the first motion filed by new counsel for the Rigsby qui tam case.
The Rigsbys recently have had some discussions with representatives of Richard Scruggs and/or the Scruggs law firm regarding whether to reduce the indemnity agreement to writing to avoid any confusion regarding its terms. New Counsel intend to assist the Rigsbys in connection with the possibility of reducing the indemnity agreement to writing.
The Scruggs-Rigsby indemnity agreement was at issue in Scruggs v Zuckerman Spaeder. Logic holds that any effort to reduce Scruggs agreement with the Rigsby sisters would have to recognize and resolve the dispute with Zuckerman-Spaeder.
Patsy Brumfield reported on the settlement in todays Daily Journal – with a misleading lede lawsuit against Scruggs Law Firm of Oxford correctly stated later in the story.
At issue was whether the firm, formerly led by now-imprisoned Richard “Dickie” Scruggs, would pay another firm, Zuckerman Spaeder LLP, for its representation of the Rigsby sisters, Cori and Kerri, in legal action between Scruggs and State Farm insurance…
At issue reportedly was more than $1.7 million dollars in legal fees, although Scruggs’ attorneys insisted a “substantial payment” had been made on the balance.
Scruggs first sued Zuckerman and asked U.S. District Court of Northern Mississippi for declaratory relief _ that Scruggs Law Firm had no more responsibility greater than any other member of the Scruggs Katrina Group for money owed Zuckerman, and that Zuckerman was not entitled to anything personally from Scruggs.
Zuckerman counterclaimed, saying Scruggs sued them in anticipation of a contract lawsuit by Zuckerman.
Ultimately, everybody decided to deal out of court.
Judge Davidson signed the Agreed Order of Dismissal on the 18th of August.
In light of a settlement of all claims and contentions of liability of the parties as set forth in the pleadings herein, Scruggs Law Firm, P.A. (hereinafter “Scruggs Firm”), Richard F. Scruggs (hereinafter “Scruggs”) and Zuckerman Spaeder LLP (hereinafter “Zuckerman Spaeder”) have agreed, pursuant to Rule 41 of the Federal Rules of Civil Procedure, to dismissal of this litigation (including all claims and counterclaims, asserted or amenable to assertion) with prejudice with the parties to bear their respective attorney’s fees, expenses, and costs.
The on-going resolution of lingering legal matters suggests Scruggs intends to be a free man in every sense of the word once he completes his sentence – given his five years is four-to-five times longer than the 12-18 months recommended for Robert Moultrie, I would certainly hope so.