A
LAWYER'S TRIALS
Tort King's Path to Bribery Charge
Scruggs Has History
Of Spats Over Fees;
$50 Million Adviser
By PAULO PRADA and ASHBY JONES
March 14, 2008
Last November, a lawyer who was working with
famed plaintiffs' attorney Richard Scruggs entered the chambers of a local
Mississippi judge and delivered the last chunk of a $40,000 cash payment. In
return, the judge said he would issue a ruling favorable to Mr. Scruggs in a
fee dispute with other lawyers.
Driving away after delivering the cash, the
lawyer was pulled over by federal agents and confronted with videos of his
visits. He soon agreed to wear a wire. Within a month, a federal grand jury had
charged Mr. Scruggs, the architect of landmark litigation against cigarette
makers, with conspiracy to bribe a state official.
Mr. Scruggs helped revolutionize American
tort law starting in the 1980s and '90s. Pursuing not one client at a time but
thousands, he and a handful of other enterprising lawyers from around the country
assembled teams of attorneys to round up throngs of plaintiffs, then took on
big companies from industries like tobacco, construction and pharmaceuticals.
In the largest score, a Scruggs team wrested $206 billion from cigarette makers
in 1998 on behalf of 46 states -- the subject of a movie, "The
Insider," whose sets included Mr. Scruggs's beachfront mansion.
He thus has been a seminal player in the
concept that where government fails to protect the public from businesses that
pose risks to the public or workers, private litigation can step in. Now, a
trial set to begin this month threatens the career of one of the most powerful
and feared forces in product-liability litigation.
To many legal observers, the indictment
raises a hard question: What could lead a lawyer who once earned nearly $1
billion on a single case, the tobacco litigation, to bribe a judge over a
matter of a few million dollars?
The answer is simple -- he didn't -- says Mr.
Scruggs's lawyer, John Keker. He says prosecutors have concocted a
"manufactured crime" in which his client had no part. Whether that's
so will be up to a jury to be empaneled starting March 31 in federal court in
Oxford, Miss. In the meantime, a close look at Mr. Scruggs's career and methods
offers clues to how this legendary lawyer got into a fix that puts his very
freedom in jeopardy. Mr. Scruggs declined to be interviewed.
Mr. Scruggs is known for surrounding himself
with layers of other attorneys, as well as for having unorthodox relationships
with well-paid intermediaries to broker political or legal arrangements. He
also has a history of fights over how to divide legal fees after a big victory.
The suit leading to the indictment was such a case. Among lawyers who felt
shortchanged was Steve Funderburg.
"I have looked in the mirror all weekend
and tried to figure out how I could be so stupid," Mr. Funderburg emailed
Mr. Scruggs in March last year. Citing a law partner, he said: "John and I
DEFENDED you in fee dispute litigation for God's sake. We DEFENDED you when
people said you were greedy, or were a back stabber or were a liar."
BUILDING THE CASE
Read
the legal documents behind the case and transcripts of various wiretapped
conversations:
• Timothy R. Balducci to Henry Lackey:
-- "Listen, I was just calling to uh… ask you, you know, uh… I was gonna
get those sweet potatoes delivered to my friend down there…". Transcript.
• "Not only did the government
pursue [attorney Timothy R.] Balducci to the point of manufacturing a crime for
him, but it also engaged in a pattern of concealing from this Court the
excessive government involvement in the alleged crime." Defendants' motion to dismiss the
indictment due to government's "outrageous conduct" in investigation.
• "Defendants allege that the
government has consciously engaged in a pattern of deception and concealment,
deceiving the Court and in effect obstructing the due administration of
justice. It should come as no surprise that the government takes exception to
those allegations." Government's response to Scruggs et
al.'s motion.
Mr. Scruggs replied thanking Mr. Funderburg
for his work but adding: "It is now in the best interests of all, and of
success for the clients, that [we] move on without you."
Mr. Scruggs, a slender 61-year-old known as
"Dickie" with a wide, disarming smile, is regarded as generous with
his friends and his community. He has lavished special attention on his alma
mater, the University of Mississippi, where a campus hall bears his name.
Besides deep pockets he has deep connections.
His wife is a sister of the wife of Trent Lott, the former Senate Majority
Leader, a tie that has brought him entree to Republican circles despite his own
support of Democratic candidates.
Reared on Mississippi's steamy Gulf Coast,
Mr. Scruggs graduated from the University of Mississippi in 1969, spent five
years as a Navy fighter pilot, then returned to Ole Miss to study law. After
practicing for a while in Jackson, he set up his own firm in Pascagoula, near
where he grew up.
First,
Asbestos
There, he specialized in suing companies that
had made products containing asbestos. He and another local attorney, William
Roberts Wilson Jr., pooled their cases and assembled thousands of plaintiffs.
When a law-school classmate, Mike Moore,
became state attorney general, he engaged Mr. Scruggs to sue users of asbestos
on the state's behalf. Mr. Scruggs argued successfully that companies should
pay to remove the material from public buildings. Hired for a share of
recoveries won, Mr. Scruggs made about $5 million, say attorneys familiar with
the settlements.
To help manage his private asbestos cases,
Mr. Scruggs hired a young lawyer named Alwyn Luckey. But in 1993, as many of
the cases were paying off, Mr. Scruggs fired Mr. Luckey and refused to pay him.
Mr. Luckey sued Mr. Scruggs seeking his fee.
Soon the other partner in the
asbestos-litigation venture, Mr. Wilson, also sued Mr. Scruggs, contending he
unfairly hoarded the legal fees.
Around this time, another law-school
classmate, Michael T. Lewis, says he gave Mr. Scruggs the idea that ultimately
made him rich and famous: demanding that tobacco companies repay states for
their Medicaid costs in caring for people sickened by smoking.
Mr. Scruggs was intrigued, but had drawn
criticism over his asbestos litigation for the state. Detractors called it a
gravy train for the attorney general's favored lawyers, who repaid the favor
with campaign donations.
So Mr. Scruggs turned to another political
pal: Pete Johnson, who says Mr. Scruggs asked him to help push through
legislation clearly authorizing the attorney general to farm out lawsuits to
private lawyers. Mr. Johnson, a former state auditor, says that at an airport
restaurant in March 1994, Mr. Scruggs promised him 10% of his legal fees from
the tobacco case if the bill passed and the litigation was successful.
With Mr. Johnson navigating behind the
scenes, the bill passed. But after the tobacco settlement brought Mr. Scruggs
nearly a billion dollars in legal fees, he said "he didn't owe me
anything," Mr. Johnson says. Like Messrs. Luckey and Wilson, Mr. Johnson
filed a suit for legal fees against Mr. Scruggs.
In 2001, with the suit unresolved, Mr.
Johnson dropped it. He was a liver-transplant survivor, and "decided I'd
rather spend whatever time I have left alive at peace and not in court fighting
for money," he says.
Mr. Scruggs then sent him a $100,000 check,
via an intermediary and without explanation. Mr. Johnson saw it as "a way
for him to tell my estate that I was paid for my work."
A consultant in the tobacco litigation,
Richard Daynard, also sued Mr. Scruggs, eventually receiving a portion of what
he claimed he was owed. Even Mr. Lewis, the man who says he gave Mr. Scruggs
the idea for the tobacco litigation, says he had to wrangle with Mr. Scruggs to
get his money. "There was a lot of internal strife," Mr. Lewis says. "In
the interest of our client, we decided not to take it outside."
Fee disputes among plaintiffs' lawyers aren't
uncommon. Allies of Mr. Scruggs say that for him, such disputes involved a
minority of former associates, people who grew greedy once Mr. Scruggs landed
blockbuster settlements. "In these situations people want more
money," says Mr. Keker, his lawyer. "Flies come around buzzing and
think that their contribution is more than it is."
In any case, the allegations of shortchanging
came following the successful conclusion of cases. Beforehand, while legal
success was uncertain, Mr. Scruggs sometimes paid handsomely for aid that could
help bring victory.
Paying
for Help
The deals could be unusual. He agreed to pay
no less than $50 million over 25 years, sometimes through a third party, to a
consultant named P.L. Blake, whose bankruptcy Mr. Scruggs had handled and who
had a conviction for bank fraud. Asked in a 2005 court case what the consultant
did for all that money, Mr. Scruggs testified that Mr. Blake kept him informed
of "inside baseball" and "movers and shakers" at the state
and federal level. Mr. Blake declined to comment.
Mr. Scruggs also made an unorthodox payment
to help clear the way for his big tobacco settlement in 1997. An obstacle
loomed in the form of a related lawsuit filed by a Mississippi lawyer named
Shane Langston. Mr. Scruggs knew his brother, Joseph "Joey" Langston,
and asked him to get Shane to drop his suit. Shane did drop it.
In return, say people familiar with the
matter, Mr. Scruggs offered Joey Langston 3% of his tobacco-case legal fees, to
be shared with Shane and Shane's client. This came to tens of millions of
dollars. Joey Langston couldn't be reached for comment. Shane Langston declined
to discuss the arrangement.
In 2003 Mr. Scruggs moved to the bucolic town
of Oxford, home to Ole Miss. He built a white neoclassical mansion, lavished
donations on the university and opened a practice in a balconied office above
cafés and bookstores on the courthouse square.
But the trail of embittered ex-associates was
catching up with him. In the suit by Mr. Luckey, the fired young associate in
the asbestos litigation, a U.S. magistrate in federal court in Oxford ruled in
2005 that Mr. Scruggs's "refusal to pay Luckey's fees...was
frivolous," and ordered him to pay $17.6 million.
In the suit by the other early partner in
asbestos litigation, Mr. Wilson, an outside expert for a state judge said in
January 2006 that Mr. Scruggs should pay $15 million.
At this point, the risk to Mr. Scruggs was
that the state-court judge would adopt that recommendation and order Mr.
Scruggs to pay $15 million. To prevent this, the Scruggs defense team paid a
close friend of the judge $50,000 to give the team drafts of court orders
before they became final, according to a federal-court "information" document
outlining charges for a guilty plea in the matter by Joey Langston, who was
representing Mr. Scruggs in the case.
Mr. Scruggs had told Mr. Langston to tell the
state judge that if he ruled in Mr. Scruggs's favor, Mr. Scruggs would pass the
judge's name along for a federal judgeship, according to a prosecutor's
account, as accepted in the guilty plea. Mr. Scruggs paid $3 million to those
who set up this effort to sway the judge, according to the guilty-plea
information document.
A key step in getting a federal judgeship is
a recommendation from a U.S. senator. Mr. Scruggs suggested to his
brother-in-law, then-Sen. Lott, that the state judge be considered, according
to people familiar with the situation. Mr. Lott called the state judge to say
he was aware of his interest in the federal bench.
PATH
TO A BRIBERY CHARGE
1969-1974: Scruggs flies training missions as
a Navy fighter pilot upon graduation from the University of Mississippi.
1974-1977: Scruggs returns to "Ole
Miss" and earns a law degree.
1977-1993: Scruggs begin his career as a
bankruptcy attorney, but later specializes in litigation on behalf of asbestos
victims.
1993: Alwyn Luckey, a former employee, sues
Scruggs over attorneys fees from asbestos settlements. Michael T. Lewis, a
former law school classmate, approaches Scruggs with the idea to sue tobacco
companies on behalf of the state of Mississippi.
1994: Scruggs contacts Pete Johnson, a former
Mississippi state auditor, for help clarifying Mississippi law to explicitly
allow the attorney general to hire private lawyers to litigate for the state.
William Roberts Wilson Jr., another former partner in the asbestos litigation,
sues Scruggs over attorneys fees.
1994-1998: Scruggs assembles teams of lawyers
to pursue the tobacco litigation on behalf of Mississippi and 45 other states.
Tobacco-makers reach a landmark, $206 billion settlement with the states in
November 1998.
1998-2003: Johnson and others allege Scruggs
did not pay them their fare share of attorneys fees for work on the tobacco settlement.
The disputes are resolved.
2005: A federal court orders Scruggs to pay
Luckey $17.6 million in unpaid attorneys fees, interest, and damages. On Aug.
31, Hurricane Katrina slams into the Gulf Coast. Scruggs proceeds to seek
claims from insurers for hurricane damages on behalf of hundreds of clients.
2006: Scruggs scores a victory in the Wilson
lawsuit, when Judge Robert "Bobby" DeLaughter declines to award Mr.
Wilson damages beyond unpaid fees.
2007: Scruggs and associated lawyers win
$26.5 million in legal fees from a settlement over Katrina damages with State
Farm Insurance Cos. in January. In March, one of the associated law firms sues
Scruggs over distribution of the fees. In November, prosecutors indict Scruggs,
his son, a third partner, and two acquaintances in an alleged attempt to bribe
the judge hearing the lawsuit.
2008:
The criminal trial against Mr. Scruggs is scheduled to commence March 31.
In August 2006 the state judge, Robert
"Bobby" DeLaughter, ruled that Mr. Scruggs didn't owe Mr. Wilson $15
million -- as the outside expert had said -- but only $1.5 million. Judge
DeLaughter didn't return calls seeking comment. He has told the local press
that "I know I didn't take a bribe." Ultimately, Sen. Lott endorsed
someone else for the federal judgeship.
Judge DeLaughter remains on the bench and
hasn't faced charges in the case, nor has Mr. Scruggs. Mr. Scruggs's lawyer,
Mr. Keker, says, "I don't think there's any evidence anywhere that there
was a quid pro quo or that the judge was given a thing of value or that he was
influenced in any way."
Joey Langston's guilty plea, to conspiracy to
corruptly influence a state official, came in January. The investigation is
continuing.
A Federal Bureau of Investigation agent and
two prosecutors have interviewed Mr. Lott in recent weeks, say people familiar
with the matter. He "may be a witness" in the case against Mr.
Scruggs, says U.S. Attorney Jim Greenlee. An attorney for Mr. Lott, who
resigned from the Senate in late 2007, said, "Sen. Lott is a witness and
only a witness."
The case that led to Mr. Scruggs's
bribery-conspiracy indictment last November grew out of Hurricane Katrina's
destruction in 2005, which included large coastal houses of Mr. Scruggs and Mr.
Lott. When insurers began saying homeowner policies didn't cover the damage,
Mr. Scruggs sprang into action, organizing a team of lawyers to fight them.
Among those joining Scruggs Katrina Group
were Jackson lawyers John Jones and Steve Funderburg. In early 2007, a
settlement with State Farm Insurance Cos. brought the group $26.5 million in
legal fees. Of this, Mr. Scruggs offered Messrs. Jones and Funderburg's law
firm $1.6 million. It was Mr. Funderburg's fury at the size of this cut that
led to his blistering email to Mr. Scruggs in March 2007.
Piece
of the Pie
The Jones firm sued Mr. Scruggs and the
others for a bigger piece of the pie. Within days, according to federal
prosecutors, Mr. Scruggs met with three other lawyers to plan how to rig the
outcome. The three -- all later indicted along with Mr. Scruggs -- were his son
and law partner David "Zach" Scruggs, Sidney Backstrom and Timothy
Balducci.
Mr. Balducci was a longtime friend of the
state judge to whom the case was given, Henry Lackey, a 73-year-old jurist with
white hair, a slow drawl and a seat on a state commission on judicial
integrity. In the spring of last year, Mr. Balducci arranged to meet with the
judge at his chambers in Calhoun City, Miss., and, according to a government
filing, offered Judge Lackey a position with his firm in exchange for an order
dismissing the suit.
Judge
Lackey has said he was shocked. "My first thought was: What kind of
character flaw has he discovered in me
that would lead him to think that I would do something like this?" Mr.
Lackey said in an interview last November. "I was furious.... This strikes
at the heart of our judicial system." He called federal authorities and
agreed to take part in a sting, in which he ultimately asked Mr. Balducci for
$40,000 in exchange for a certain ruling. For six weeks starting late last
September, the FBI recorded Mr. Balducci's conversations with the judge, often
full of ambiguous good-old-boy banter.
On Sept. 27, Mr. Balducci delivered $20,000
in cash, according to the indictment and his subsequent guilty plea in U.S.
District Court for the Northern District of Mississippi in Oxford. "This
is just between me and you.... There ain't another soul in the world that
knows," according to transcripts filed in court.
"I would think Mr. Scruggs would have to
know something," Judge Lackey replied.
Later in the conversation, Mr. Balducci said
Mr. Scruggs was "not involved in a direct manner....doesn't wanna be.
Doesn't need to be."
They began using farm-country code to discuss
the payments and the order the judge was supposed to prepare. "I was gonna
get those sweet potatoes delivered to my friend down there," Mr. Balducci
told the judge on Oct. 10. "Do you have any idea when you might get
those?"
On Oct. 18, according to the indictment, Judge
Lackey provided a draft court order to make it appear he was going along with
the scheme. Mr. Balducci delivered it to Mr. Scruggs's firm and picked up a
$40,000 check reimbursing him for the bribes -- plus paperwork to make it
appear this was a payment for legal work -- according to the indictment. It was
after Mr. Balducci gave the judge a final cash payment last Nov. 1 that federal
agents pulled him over on the roadside and confronted him.
Wearing
a Wire
Within hours, he was driving through the woods
and farms back toward Oxford and the Scruggs Law Firm. Wearing a hidden
microphone, he climbed the steps to the offices upstairs.
According to a transcript of recorded
conversations and people familiar with the afternoon's events, Mr. Balducci
first joshed with Mr. Backstrom about his new house and his children's
trick-or-treating the night before. Then, prosecutors say, he suggested
to Mr. Backstrom and Zach Scruggs, using the code word, that the judge wanted
more money. "I've gotta go back for another delivery of…sweet potatoes
down there," he said.
Finally Mr. Balducci made his way to Richard
Scruggs, in his corner office decorated with a painting of a sunlit marsh and a
table holding his Navy aviator's helmet. Mr. Balducci showed him a new version
of the fake judicial ruling in favor of Mr. Scruggs in the legal-fee suit.
"Read it and tell me if that, if it's OK," Mr. Balducci said.
Mr. Scruggs spotted a grammatical error.
"That last sentence is not really a sentence," he said. "He
needs a colon there."
Following a script suggested by
investigators, Mr. Balducci said the judge had asked for more money. "He
thinks he's a little more exposed...than he was before and did I think that you
would do a little something else... 'bout ten or more so?"
A phone call interrupted.
"Do you want me to cover that or
not?" Mr. Balducci asked.
"I'll take care of it," Mr. Scruggs
finally said, adding that Mr. Balducci should bill him for additional legal
drafting.
"I'll do your jury instructions,"
Mr. Balducci said. "That's probably worth about ten, don't you
think?" The two discussed how to prepare the instructions and then agreed
on an engagement letter to confirm the work. Prosecutors say this was false
paperwork to cover payments that reimbursed Mr. Balducci for bribes. Mr.
Scruggs's lawyers say it was legitimate paperwork.
On Nov. 28, a U.S. grand jury charged Richard
Scruggs, Zach Scruggs, Mr. Backstrom, Mr. Balducci and a Balducci partner,
Steven Patterson, with conspiring to commit fraud and bribe an elected
official. Days later, Mr. Balducci pleaded guilty. His partner, Mr. Patterson,
later pleaded guilty as well.
Messrs. Scruggs, Scruggs and Backstrom now
face trial. Richard Scruggs's lawyer, Mr. Keker, says the recordings contain
multiple admissions by Mr. Balducci that Mr. Scruggs wasn't in on the bribery
scheme. As for Zach Scruggs, he "is innocent and never joined an unlawful
conspiracy," says the son's lawyer, Todd Graves. Mr. Backstrom's attorney,
Frank Trapp, likewise says his client "never had any intent to influence a
judge."
Write
to Paulo Prada at paulo.prada@wsj.com and Ashby Jones at ashby.jones@wsj.com
Scruggs Pleads Guilty in
Bribery Case
Published: March 14, 2008
One of the best-known plaintiffs’ lawyers in
the country, Richard Scruggs, unexpectedly agreed to plead guilty on Friday to
a criminal charge of conspiracy in the attempted bribery of a judge.
The single charge — five others were
dismissed under the agreement — carries a maximum sentence of five years in
prison and a $250,000 fine, according to the agreement.
Mr. Scruggs’s son, Zachary, who was also
named in an indictment handed up in November, did not plead and so is expected
to go to trial beginning March 31.
Mr. Scruggs and his lawyer, John Keker, could
not immediately be reached for comment, nor could lawyers for Mr. Scruggs’s son
or Mr. Backstrom.
The trial of Mr. Scruggs, famous for his role
in tobacco litigation portrayed in the movie “The Insider,” has transfixed the
legal community in Mississippi and nationwide. He is widely credited with
developing the legal strategy of gathering mass of clients and suing not just
individual companies, like makers of asbestos or cigarettes, but entire
industries for damages. In the process he became wealthy and unpopular in the
eyes of big business.
Famed Litigator Admits
Attempt To Bribe a Mississippi Judge
By Emily Wagster Pettus
Associated Press
Saturday, March 15, 2008
Trial lawyer Richard F. Scruggs, chief
architect of the $206 billion nationwide tobacco settlement in the 1990s,
pleaded guilty yesterday to conspiring to bribe a judge in another case.
Scruggs and Sidney A. Backstrom, a lawyer in
his firm, pleaded guilty to conspiracy to defraud for offering a $50,000 cash
bribe to a Mississippi judge in
exchange for a favorable ruling in a dispute over legal fees from a Hurricane
Katrina insurance lawsuit.
In return for Scruggs's guilty plea in U.S. District Court in Oxford, Miss., federal
prosecutors will recommend that several other charges against him be dropped.
No sentencing date was set. Prosecutors are asking that Scruggs be sentenced to
the maximum of five years in prison. He will also lose his license to practice law.
Scruggs's son and law partner, David Zachary
Scruggs, also is charged in the case but did not enter a plea and is expected
to be tried.
For months, Scruggs appeared intent on
fighting the charges. He gave up after two of his co-defendants turned on him.
One secretly tape-recorded him for the FBI.
Federal prosecutors had no comment, and
Scruggs's attorneys could not be reached.
After Hurricane Katrina struck in 2005,
Scruggs sued insurance companies on behalf of hundreds of homeowners whose
damage claims were denied.
Scruggs, his son and three other associates
were indicted in November. They were accused of conspiring to bribe Lafayette
County Circuit Judge Henry L. Lackey, who was overseeing a dispute between
Scruggs and other lawyers over $26.5 million in fees from a settlement of the
hurricane cases. Lackey reported the bribe offer to the FBI and worked
undercover.
Two of the men indicted, lawyer Timothy
Balducci and former Mississippi state auditor Steven A. Patterson, pleaded
guilty and worked with the prosecution.
Balducci told the FBI that he paid Lackey
$50,000 in cash at the behest of the Scruggses and Backstrom. Balducci wore a
wire and recorded incriminating statements from Scruggs.
Scruggs lives in Oxford. He is the
brother-in-law of former senator Trent Lott and is a major
contributor to Democrats.
In the tobacco case, Scruggs worked with
whistle-blower Jeffrey Wigand, a former tobacco company scientist. The actor
Colm Feore played Scruggs in "The Insider," a 1999 movie about the
case.
Scruggs, a graduate of the University of Mississippi,
is one of the school's largest donors. The music department building at the
university bears his name.
Scruggs built fortune with
class action suits
Saturday, March 15, 2008
By BRAD CROCKER
PASCAGOULA -- Before Richard
"Dickie" Scruggs became known as a multi-millionaire plaintiffs
attorney, he had humble Mississippi beginnings, his friends said.
Scruggs was born in Brookhaven in 1943. His
father left the family when Scruggs was 5, leaving his wife, Helen, to raise
their son, according to a 2000 Time Magazine article by Pascagoula native Dan
Goodgame.
Scruggs grew up in Pascagoula and learned
about the shipbuilding industry from his mother, who was a secretary at Ingalls
Shipbuilding. After graduating from Ole Miss and serving as a U.S. Navy fighter
pilot, Scruggs opened his Pascagoula law firm in 1980.
Before earning nearly $1 billion in a
landmark class-action lawsuit against tobacco companies in the 1990s, Scruggs
represented shipyard workers who suffered from lung cancer and other diseases
after exposure to asbestos.
"I like to get the stakes so high that
neither side can afford to lose," Scruggs said in a 1998 interview on PBS'
Frontline TV show, referring to his forte of bringing large numbers of
plaintiffs to the table.
In his explanation, Scruggs said, "That
means that in mass tort cases there is no way to try any individual case
because the defendant has the advantage. He can beat you one at a time or ...
you have not put them in mortal danger."
Before Scruggs represented hundreds of
homeowners affected by Hurricane Katrina, his lawsuits centered mostly on
health issues. Alongside former Mississippi Attorney General Mike Moore, a
Pascagoula native and Ole Miss classmate, Scruggs sued the tobacco industry in
the 1990s and won billion-dollar settlements to pay for health-care costs in
Mississippi and other states that joined in the lawsuit.
Scruggs' pay for his contributions was
reportedly $50 million over 20 years. Mississippi and other states shared $248
billion.
The case inspired the 1999 movie, "The
Insider," portions of which were filmed in Pascagoula, where the original
lawsuit was filed. Colm Feore portrayed Scruggs in the film, and Scruggs and
Moore each had appearances on the big screen, including a scene in which
Pascagoula police officers escorted Scruggs, Moore and whistleblower Jeffrey
Wigard -- played by Russell Crowe -- from Beach Boulevard to a packed
Pascagoula courtroom.
"The money didn't matter as much as the
public health," Scruggs later told Frontline. "It's not often in life
that you have a chance to make a mark on humanity."
The article by Goodgame, now a managing
editor with "Fortune" magazine, also focused on Scruggs' stint as a
U.S. Navy fighter pilot in the early 1970s.
Goodgame wrote that Scruggs -- who Goodgame
said he has known for more than 40 years -- had a plan in case the U.S. entered
into war with the former Soviet Union.
"U.S. aircraft would fly beneath the
radar of Soviet warships, then pop up suddenly and use anti-tank bombs to
destroy the ships' cruise missiles," Goodgame wrote.
"His commander adopted the scheme, and
Scruggs had his first taste of plotting to crack defenses that had been thought
to be impregnable."
During his legal career, Scruggs enjoyed the
action over the money, Goodgame surmised in the article.
Scruggs' other local contributions relate to
his large donations to the University of Mississippi.
In 1993, Scruggs and his wife, Diane, bought
the Longfellow House in Pascagoula. The couple paid $200,000, saving the
three-story Greek Revival house from demolition, a move that allowed wedding
receptions, large political functions and other events to be held.
After spending $1.2 million to renovate the
home -- which was built in 1850 -- the Scruggses donated it to the University
of Mississippi Foundation, which put it on the market.
Drs. Randy and Tracy Roth bought the home in
the spring of 2006 and converted it into a private residence for the first time
in nearly 70 years.
The couple also converted a historic
antebellum home on Main Street in Moss Point into the Dick and Diane Scruggs
Center for Compatible Development, where city officials have considered moving
City Hall.
Reporter
Brad Crocker can be reached at bcrocker@themississippipress.com or
228-934-1431.
More
Case Documents:
• Amended
complaint in the underlying fee-dispute case
• Criminal information filed against
former Scruggs lawyer Joey Langston
• Joey Langston's plea agreement
• Transcript of
hearing on Langston's plea
• Steve
Patterson's plea agreement
• Transcript of conversations between
Henry Lackey and Tim Balducci on Aug. 2007