NMC blogs Derek Wyatt is suing Scruggs, David Nutt and Mary McAlister

Derek Wyatt has sued the various Scruggs Katrina Group members over his time working for Nutt & McAlister on SKG cases. The gist of his lawsuit was that he was promised 10% of whatever Nutt got from SKG cases after December, 2006, and that Nutt and McAlister have cheated him in various ways.

The lawsuit is a (obviously one-sided– it’s Wyatt’s version) inside picture of the operations of SKG, and provides a lot of information new to me about the course of those lawsuits. The areas I particularly noted related to the Rigsbys, some allegations about documents Wyatt says that he obtained in discovery in Nevada, which he says were the basis of the racketeering case against State Farm, some allegations about the collapse of the Woullard class action and settlement, and some details about the ways SKG (or at least the Scruggs part of it) spent money.

I’ve already noted an email about the Rigsbys. There’s in the complaint itself. Wyatt alleges that he met the Rigsby sisters in the Spring of 2006 at an SKG Joint Venture meeting, and that he later leanred that “Scruggs had secretly met with the Rigsbys as far back as February….” This is on pages 27-28.

McAlister writes Scruggs that “any agreement to pay the sisters…will destroy their credibility as witnesses.”

Interesting parts of the story of Scruggs Katrina Group are still emerging, and presumably will continue to do so.

One interesting question has always been what the various SKG members knew about Scruggs’s dealings with the Rigsby sisters, and when knew about it. There’s a new pile of documents that have emerged (more about how and why in a later post) that fills out a bit of that story.

It may be self-serving, but if we credit a letter Meg (or Mary) McCalister of the Nutt & McAlister part of the Scruggs Katrina Group joint venture, Nutt-McAllister had no idea that Scruggs had agreed to pay the Rigsbys until after they’d hit national news. And Nutt-McAlister– whose firm was fronting the money and doing all the expense payments for the SKG– learned about it when they got a gleeful email and then a call from the Rigsbys that payday had arrived.


Check back for updates as the come in