The Texas Law Firm now representing former Scruggs Katrina Group clients also wants to consider taking on a whistle-blower lawsuit for two former insurance adjusters who handled State Farm claims, but not without a federal judge's permission.
The Provost Umphrey Law Firm is asking the U.S. District Court for "leave to discuss and possibly undertake representation" of Ocean Springs sisters Cori and Kerri Rigsby, inaccurately referred to in the motion as "Kelli."
Scruggs Katrina Group attorneys and all law firms previously associated with them on Katrina lawsuits against State Farm have been disqualified from those cases.
U.S. District Judge L.T. Senter Jr. found that lead attorney Dickie Scruggs violated legal ethics by paying the Rigsbys consulting salaries after they lost their adjusting jobs. Senter said associated firms knew or should have known of the ethical lapse.
The Rigsbys are suing State Farm on the federal government's behalf. They claim the company committed fraud by altering Katrina damage reports so the federal flood program rather than the insurance company had to cover damage. The government paid for damage from tidal surge, while State Farm and other private insurers were responsible for wind damage.
State Farm has denied any wrongdoing. Attorneys for the insurer said the company will likely oppose any effort by Provost Umphrey to represent the Rigsbys.
The U.S. Attorney's Office in Jackson so far has declined to intervene and prosecute the case, leaving the Rigsbys to forge ahead if they choose. However, Provost Umphrey says a Louisiana firm already has turned down their case.
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