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Feds To Scruggs: Gotcha!

Scruggs.JPG
For insurers, the news is almost too good to be true! Richard "Dickie" Scruggs, scourge of the industry, the moving force behind a stampede of lawsuits over wind vs. water damage in Hurricane Katrina, was indicted yesterday on federal bribery charges.

As reported by our own Dan Hays (click here for the full story), Mr. Scruggs, along with four other attorneys (one of whom was his son), is accused of conspiring to bribe a state court judge.

The news comes on the heels of another "stop the presses" moment this week--the announcement by Sen. Trent Lott, R-Miss., that he'll be leaving Congress before year's end. (See yesterday's blog entry for details.)

Sen. Lott started pushing legislation to strip the industry of its cherished antitrust exemption after suing State Farm on his own Katrina claim. Who did he hire to represent him? The firm of his brother-in-law, Mr. Scruggs! (A funny alliance for a champion of tort reform like Sen. Lott, to be sure, but politics does indeed make for strange bedfellows)

Of course, Mr. Scruggs is innocent until proven guilty. But since this is the second legal mess he's faced of late--this summer, criminal contempt charges were brought against him by special federal prosecutors in Alabama over his alleged mishandling of evidence in a case against State Farm--he should have his hands full. That means he'll have less time, perhaps, to go after insurers.

If anyone can get Mr. Scruggs off the hook, it's Mr. Scruggs. He is a clever and resourceful attorney. But if he is convicted, insurers wouldn't shed any tears.

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Comments (4)

Chris M.:

One interesting sidebar: For some reason the Clinton campaign has canceled their December fundraiser at the Oxford, Miss. home of...Anyone?...Anyone?...Dickie Scruggs!

Go figure, Trent Lott's brother-in-law holding a fundraiser for a Democratic presidential candidate! What was that comment earlier about politics and bedfellows?

You're very kind, Sam, but the presumption of innocence might not apply to the likes of Dickie Scruggs.

Sam Friedman:

For those who are interested in the Lott/Scruggs developments, check out the musings of
Joel Wood, senior vice president of government affairs at the Council of Insurance Agents & Brokers, who wrote a very amusing and personal reaction to the news.

You can view his take at http://newsmanager.commpartners.com/ciab/issues/2007-11-29/index.html

Michael Burnell:

Looks like the fox got caught in the henhouse. Couldn't have happened to a nicer guy. "All things come to those who wait."

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This page contains a single entry from the blog posted on November 29, 2007 3:44 PM.

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