Scruggs, Millette, Bozeman & Dent, PA v. MERKEL & COCKE, PA

910 So. 2d 1093, 2005 WL 2234767
CourtMississippi Supreme Court
DecidedSeptember 15, 2005
Docket2003-CA-01322-SCT
StatusPublished
Cited by22 cases

This text of 910 So. 2d 1093 (Scruggs, Millette, Bozeman & Dent, PA v. MERKEL & COCKE, PA) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scruggs, Millette, Bozeman & Dent, PA v. MERKEL & COCKE, PA, 910 So. 2d 1093, 2005 WL 2234767 (Mich. 2005).

Opinion

910 So.2d 1093 (2005)

SCRUGGS, MILLETTE, BOZEMAN & DENT, P.A.
v.
MERKEL & COCKE, P.A., Charles M. Merkel, Jr., Individually and as Shareholder in Merkel & Cocke, P.A.; Cynthia I. Mitchell, Individually and as Shareholder in Merkel & Cocke, P.A.; Alwyn H. Luckey; and William Roberts Wilson, Jr., P.A.

No. 2003-CA-01322-SCT.

Supreme Court of Mississippi.

September 15, 2005.

*1095 Mark A. Nelson, Hattiesburg, attorney for appellant.

Richard M. Thayer, Jackson, Stephen W. Burrow, Pascagoula, W. Lee Watt, Joe R. Colingo, Vicki R. Slater, E. Foley Ranson, Ocean Springs, attorneys for appellees.

Before WALLER, P.J., EASLEY and GRAVES, JJ.

WALLER, Presiding Justice, for the Court.

¶ 1. This appeal involves a fee dispute between several attorneys. The first attorney, Richard F. Scruggs ("Scruggs"), is a senior member of the Scruggs, Millette, Lawson, Bozeman & Dent, P.A. ("SMLB & D"), the appellant herein. Back in the 1980s, when mass tort litigation pertaining to asbestos exposure was gearing up, he formed Richard F. Scruggs, P.A. (Scruggs, P.A.), to handle many asbestos plaintiffs' cases. These plaintiffs were allegedly exposed to asbestos during their employment in Ingalls Shipyard in Pascagoula. Scruggs, P.A., hired attorney Alwyn H. Luckey ("Luckey"), an appellee,[1] to work on the asbestos cases.

¶ 2. In the meantime, the second attorney, William Roberts Wilson, was also being hired by potential asbestos plaintiffs. He formed William Roberts Wilson, P.A. (Wilson, P.A.), an appellee, to handle his asbestos cases.

¶ 3. Apparently, in the asbestos litigation, a lot of the footwork in developing the cases involved obtaining "picture books" which contained pictures of each product allegedly containing asbestos used in the different factories where the asbestos plaintiffs had worked. There were hundreds, maybe thousands, of products allegedly containing asbestos. When an asbestos plaintiff retained an attorney, the plaintiff would look at the attorney's picture book and identify any product he had seen or used during his employment. The attorney would then add the manufacturer of that product to his list of defendants. Most asbestos suits had scores of defendants.

¶ 4. A second labor-intensive aspect of the asbestos litigation was to acquire several expert witnesses who would testify, e.g., that the defendant manufacturer made the product between specific years, that the factory purchased the product in specific years, that the product was used in specific ways, and that the plaintiff was employed by the factory during the years that the product was in use. Medical expert witnesses were also needed to testify as to how the exposure to asbestos affected each plaintiff.

¶ 5. Asbestos plaintiffs' attorneys and asbestos defendants' attorneys quickly realized that sharing information and resources with one another would be time-and cost-effective.

¶ 6. As two asbestos plaintiffs' attorneys, Scruggs and Wilson decided to share their resources and formed another professional association, The Asbestos Group, P.A., to administer the over 200 asbestos lawsuits they had filed. The documents creating the Asbestos Group provided that Scruggs, *1096 P.A., and Wilson, P.A., would share all profits 50/50. Luckey, the attorney hired by Scruggs, P.A., began working at the Asbestos Group and, therefore, was working for both Scruggs and Wilson.

¶ 7. Sometime in the mid-1980s, a third attorney, Charles M. Merkel, Jr. ("Merkel"), an appellee, was retained by the William H. Scott family to prosecute their wrongful death/product liability claims against the asbestos manufacturers. Merkel was a senior member of the Merkel & Cocke, P.A. ("M & C"), law firm, an appellee herein. Merkel, not having any asbestos experience, approached Wilson to help him with the Scott lawsuit. Merkel and Wilson orally agreed to share the Scott lawsuit profits 50/50. Wilson agreed to provide Merkel with resources and expert witnesses, and Merkel was to prosecute the case. Merkel then asked Cynthia I. Mitchell ("Mitchell"), an attorney who worked at M & C and who is an appellee, to develop the Scott case. For all practical purposes, Merkel did not oversee the day-to-day work done on the Scott file.

¶ 8. As a discovery deadline in the Scott lawsuit approached, Mitchell told Merkel that they needed to obtain information on expert witnesses. Relying on his agreement with Wilson, Merkel told Mitchell to call Wilson for that information. The information was provided as per their agreement.

¶ 9. Later, before some depositions scheduled in Washington, D.C., Merkel met with Wilson to discuss strategy. Wilson informed Merkel that he had other business to tend to, but that Luckey would be able to prepare their expert witnesses and would attend the depositions. Wilson then introduced Luckey to Merkel, and Luckey performed the preparation for the depositions. Luckey attended the depositions but did not take part.

¶ 10. From that point on, it appears that Luckey and Mitchell did most of the work on the case. Exhibits of record show that, in corresponding with Mitchell, Luckey sometimes used the Asbestos Group letterhead and sometimes used the Scruggs, P.A., letterhead. Luckey then entered an appearance and also listed Scruggs as counsel. Apparently, in the early 1990s, the Asbestos Group became aware that its name could violate a trademark, so Scruggs, P.A., and Wilson, P.A., stopped using the name "Asbestos Group." The Asbestos Group did not acquire a new name, but the agreement between Scruggs and Wilson and the administrative duties of the Asbestos Group continued.

¶ 11. On February 26, 1991, Scruggs sent a memo to Luckey as follows:

What are the fee arrangements with Merkel in the Scott case? It appears from the enclosed materials that there is a 1/3 attorney[']s fee contract[ ] to be split equally between Merkel and us. What is not clear is who "us" is. It appears so far that Bob [Wilson] has taken 50% of our 50%. Please explain.

¶ 12. On August 7, 1992, Wilson, Wilson, P.A., Scruggs, Scruggs, P.A., and Luckey entered into an agreement which provided that: (1) Wilson, Wilson, P.A., Scruggs, and Scruggs, P.A., initially shared ownership of the Group equally; (2) In October of 1988, Wilson, Wilson, P.A., Scruggs, and Scruggs, P.A., gave Luckey 5% of the stock, thereby decreasing Wilson and Wilson, P.A.'s interest to 47.5% and decreasing Scruggs and Scruggs, P.A.'s interest to 47.5%; (3) In 1990, Luckey acquired an additional 10% of the stock, increasing his interest to 15%. Wilson and Wilson, P.A.'s interest was decreased to 40%, and Scruggs and Scruggs, P.A.'s interest was decreased to 45%; and (4) The "business relationship . . . existing between Wilson [and Wilson, P.A.] on one *1097 hand and Scruggs [and Scruggs, P.A.] and Luckey on the other hand is terminated. . . ."

¶ 13. The Scott case was eventually settled for over $300,000.00. Settlement checks from the various defendants were received by M & C over the next several years. As the checks were received, M & C disbursed various sums to various payees: the Scott family, to itself, to Wilson, to Luckey, to Wilson and Luckey, and to the Asbestos Group. Mitchell testified as follows: "It was clear to me that they (Wilson or Luckey) didn't particularly care how checks were made payable, and different ways over the period of several years, and no one ever called up and complained that we needed to do something different."

¶ 14. In 1993, Scruggs fired Luckey.

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Cite This Page — Counsel Stack

Bluebook (online)
910 So. 2d 1093, 2005 WL 2234767, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scruggs-millette-bozeman-dent-pa-v-merkel-cocke-pa-miss-2005.