State Farm Allegations Against Scruggs, WOW…or Just SOP?

By August 26, 2008Briefly Legal

Roger Parloff, legal writer at Fortune, posts a seven-part series on State Farm’s pursuit of once-titanic, now-imprisoned trial laywer Richard “Dickie” Scruggs, “State Farm v. Scruggs updates.” Scruggs went after State Farm for failing to spend even more money in the wake of Hurricane Katrina, but how he did it…

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….[snip]

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.

Normally we go to Insurancecoverageblog for Scruggs/State Farm updates, but this looks to be a useful overview. We do see that Sen. Biden’s campaign donated Scruggs-related contributions to charity before the Delaware Senator accepted the vice presidential nomination.

(Hat tip: Walter Olson)

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