March 17, 2008 – Notable lawyer Richard “Dickie Scruggs, who made a name for himself as an asbestos lawyer representing shipyard workers who had developed asbestos-related diseases after occupational exposure, has pled guilty to bribery charges.

Last Friday, the news broke that Scruggs and a colleague, Sidney Backstrom, had both pled guilty to one count of conspiring to bribe a circuit court judge.

The two had attempted to bribe Circuit Judge Henry L. Lackey, in exchange for a favorable ruling in a lawsuit focusing on legal fees in a Hurricane Katrina insurance case. The full story covers several other cases as well as several other people who have been indicted or implicated (but not charged).

Scruggs built a stellar reputation as an attorney who took on and won in cases against industrial giants in the asbestos, tobacco, and insurance industries. That reputation was tarnished on Friday as Scruggs and Backstrom pled guilt to one count of conspiracy.

A total of five men were charged with conspiring to bribe Circuit Judge Lackey. In addition to Scruggs and Backstrom, these include Scruggs’ son Zach, who practices law in his father’s firm, as well as Timothy Balducci, a former New Albany attorney, and Steven Patterson, a former state auditor. The latter two are now cooperating with the government after having pled guilty. Zach Scruggs’ trial is set to start on March 31.

At the heart of the indictment of the five men is a case involving a division of $26.5 million in Hurricane Katrina insurance cases. The case involves Jones Funderburg Sessums Peterson & Lee PLLC versus Richard Scruggs, Don Barrett and four other law firms. The Jones side of the case claims it got short-changed in the division of the cases amongst the various different law firms.

Following the guilty plea of four of the five men accused of bribing Judge Lackey to ensure a favorable outcome in this case, the Jones side has now said that the case has been “forever tainted” by the Scruggs bribery situation, and they want the new Judge, William Coleman, to decide on sanctions and damages to be awarded to them.

Judge William Coleman has so far declined a decision to sanction, saying that the outcome of the criminal charges against Scruggs should be known first.

That’s the original case Scruggs and the other men involved have been charged in conjunction with. Unfortunately, there’s more—two other cases in which Scruggs and others involved in the Hurricane Katrina case may also be involved in.

One case, Wilson et al vs. Scruggs et al, involves legal fees accruing from a national lawsuit brought against asbestos manufacturers. While this case was actually settled in 2007, and there is no proof bribery was involved, Wilson’s attorneys say they are keeping a close eye on the new case and may take legal action in the future.

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