Former insurance adjusters Cori and Kerri Rigsby are on the hook for $65,000 that attorney Dickie Scruggs refuses to fork over to their former employers, Alabama-based E.A. Renfroe.
Scruggs has placed the money with the federal court while he appeals Judge William M. Acker Jr.’s decision to fine him and the Rigsbys that amount for civil contempt in Renfroe v. Rigsby. Meanwhile, Acker has ruled, the Rigsbys must pay the fine within 14 days.
If they don’t pay, Renfroe could take their property, garnish their bank accounts or pursue other remedies.
Acker ordered the fine to cover Renfroe’s legal fees for pursuing insurance records the Ocean Springs sisters took while on assignment as Katrina claims adjusters for State Farm. They wanted the records to prove State Farm catastrophe employees ordered changes to damage reports that minimized what the company owed policyholders. State Farm has denied any wrongdoing.
The Rigsbys turned over the records to federal and state law enforcement in June 2006, but also gave a set to Scruggs. Scruggs disobeyed Acker’s initial order to give them back in December 2006.
The women earned six-figure salaries as adjusters. They were forced to give up those jobs after they took the insurance records. Scruggs hired the Rigsbys to work for $150,000 each as litigation consultants in July 2006. He also promised to cover legal fees for them.