State Farm v. Scruggs updates (Introduction)

In overview, in the unsettled remnants of the suits against State Farm that were originally brought by Scruggs (now being handled by other counsel, obviously), State Farm now alleges that Scruggs manufactured portions of his case against State Farm; induced State Farm insiders to violate their contractual duties; illegally broke into State Farm’s password-protected computer database; tampered with his own witnesses’ or clients’ computers to destroy evidence; compensated witnesses in unethical ways; violated one court’s injunction; and violated another court’s confidentiality orders.

Scruggs’s criminal counsel, John Keker, declined comment for this article, and Scruggs himself invoked his Fifth Amendment right to remain silent when asked about State Farm’s accusations at a civil deposition in July. (He also invoked the Fifth when asked for his date of birth, so his assertions of privilege in this context really should not be seen as admissions to the specific allegations State Farm is making.)

While one judge has already found Scruggs in civil contempt for violating an injunction (a ruling now on appeal) and another has found that he did, in fact, compensate witnesses unethically, most of State Farm’s other accusations remain far from proven.

Part I: Key witness will finally testify

Part II: When Kerri met Dickie

Part III: Was there a third insider?

Part IV: Computer funny business

Part V: “Trailer Lawyers”

Part VI: Violating confidentiality orders

Roger Parloff Blog
Fortune
8/25/8