Scruggs Nation miscellany

Hood talked to the Daily Journal? Then I’ll definitely be waiting to hear from him and his assistant AG Courtney Schloemer about when I get to conduct those interviews of them next week. After all, according to Schloemer’s comments published in Legal Newsline, I’m ignoring their side of the story. So again, I’m ready to tell it, and I have a lot of questions.

— This Anita Lee story in the Sun Herald contains a fact I did not know — the Scruggs(less) Katrina Group has stopped paying the Rigsby sisters their annual $150,000 salaries for “consulting” work. The way I have linked to the story is to its second part, and the relevant part is the second paragraph from the top. Maybe Dickie Scruggs is still paying them out of his own funds.

— You may remember that, in Renfroe v. Rigsby, Judge Acker requested a written response to the court to his question about when Scruggs agreed to indemnify the Rigsbies and pay for their attorney fees in this case. Here is the answer. There is no written agreement, but instead evidence of when such an agreement came into being through partial evidence and performance of the agreement. The pleading says the attorney fees have been paid in large part out of SKG funds, and it also appears that Scruggs may have committed the SKG rather than himself as the indemnitor. In light of the Anita Lee story about the SKG declining to pay further consulting fees to the sisters, I wonder if they will also repudiate the attorney fee payments and the indemnity agreement itself. If so, that probably leaves the sisters with no agreement and dependent solely on Scruggs’ goodwill.

Insurance Coverage Blog
12/22/7