U.S. Magistrate Judge Robert H. Walker of the District Court for the Southern District of Mississippi, said State Farm can have a series of documents it requested as part of the normal discovery process in the case McIntosh vs. State Farm Fire and Casualty Insurance Co. The ruling comes in spite of Scruggs' assertions the documents were privileged and cannot "lead to discoverable evidence."
Scruggs was ordered to hand over State Farm documents secretly taken by Cori and Kerri Rigsby, who worked for a firm hired to assist the insurer with claims following the hurricane. Court records said the Rigsbys had access to State Farm's computer system and were giving them to Scruggs. The documents included engineering reports and, on one was a sticky note saying, "put in wind file -- do not pay; do not discuss," Scruggs has testified.
The insurer has said Scruggs unethically obtained the documents and paid the sisters $150,000 each as consultants while planning to use them as witnesses. In a separate ruling, the sisters and the documents have been barred from use in cases against State Farm.
According to court documents, State Farm will also get documents related to Scruggs' appearance on television with the Rigsbys; communications between Scruggs and any person from the media; documents picked up by Scruggs "from a highly placed source at State Farm"; communications between Scruggs and any State Farm employee; and any communication between Scruggs and engineer Brian Ford -- who did the first report on the McIntosh home.
Furthermore, because the court found the information sought "might have bearing on the Scruggses' bias or credibility," the judge has ordered the firm hand over documents "concerning any financial interest the Scruggses have in this or any other State Farm-related Hurricane Katrina matter following their withdrawal as counsel of record."
The Scruggs Katrina Group no longer represents the McIntosh couple or other policyholders with Katrina-related lawsuits. Scruggs withdrew after he was indicted on charges related to the bribery of a Mississippi circuit court judge. Scruggs has pleaded guilty to a charge of conspiracy and is awaiting sentencing.
Other law firms within the Scruggs Katrina Group have also been barred from representing Scruggs' former clients. William F. "Chip" Merlin of the Merlin Law Group is now representing the McIntoshes, who are scheduled to go to trial with State Farm in October. Following the downfall of Scruggs, State Farm reached out to his former clients and settled with about a dozen. The company has said they continue to negotiate with others.