United States v. David Scruggs

691 F.3d 660, 2012 WL 3517367, 2012 U.S. App. LEXIS 17247
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 16, 2012
Docket11-60564
StatusPublished
Cited by36 cases

This text of 691 F.3d 660 (United States v. David Scruggs) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. David Scruggs, 691 F.3d 660, 2012 WL 3517367, 2012 U.S. App. LEXIS 17247 (5th Cir. 2012).

Opinion

PATRICK E. HIGGINBOTHAM, Circuit Judge:

David Zachary Scruggs (“Scruggs” or “Zach Scruggs”) pleaded guilty to an one-count superseding information charging *662 misprision of a felony in violation of 18 U.S.C. § 4. The district court sentenced Scruggs to fourteen months imprisonment and one year of supervised release. After he was released from prison but before the conclusion of his term of supervised release, Scruggs filed a Motion To Vacate Conviction Pursuant to 28 U.S.C. § 2255. 1 In his § 2255 motion, Scruggs claimed (1) that, in light of the Supreme Court’s decision in Skilling v. United States 2 and other legal developments, he was actually innocent of all charges, (2) that his guilty plea was involuntary due to government misrepresentation of potential testimony of a prospective witness, and (3) that he received ineffective assistance of counsel because his original trial counsel had a conflict of interest.

After holding an evidentiary hearing, the district court denied Scruggs’s § 2255 motion. 3 The district court granted a certifícate of appealability (“COA”) on three issues: whether Scruggs met the standard for proving his “actual innocence”; whether his guilty plea was involuntary due to government misrepresentation; and whether he received ineffective assistance of counsel. After careful consideration, we AFFIRM.

I.

This case arose out of an attempt to corrupt Judge Henry Lackey, a Mississippi state judge, in connection with a Hurricane Katrina-related lawsuit styled Jones v. Scruggs. The actors in the scheme in-eluded three members of The Scruggs Law Firm (“the Firm”): Zach Scruggs, his father Richard Scruggs, and Sidney Backstrom. Also involved were Timothy Balducci, an attorney who worked regularly with the Firm, and Steven Patterson, Balducci’s associate who worked with the Firm on various projects and joint ventures but was not an attorney.

Zach Scruggs, Richard Scruggs, and Backstrom had worked on Hurricane Katrina litigation against State Farm Insurance Company. That litigation resulted in the Jones suit, which involved a dispute over the division of several millions of dollars in attorney’s fees arising from a settlement with State Farm. The scheme began with a March 2007 meeting at the Firm between Balducci and Patterson and Zach Scruggs, Richard Scruggs, and Backstrom. Zach Scruggs and Patterson knew that Balducci had a close personal relationship with Judge Lackey, and the group decided that Balducci would approach Judge Lackey in an ex parte manner and speak favorably about Richard Scruggs and the Firm in relation to the Jones suit.

Balducci met with Judge Lackey and explained that he would consider it a personal favor if the judge could resolve the Jones suit in favor of the Firm and Richard Scruggs by sending the whole case to arbitration or dismissing some claims and sending the case to arbitration. Balducci also said he hoped to have Judge Lackey become “Of Counsel” with his law firm upon retirement. Judge Lackey became *663 suspicious that he was being asked to do something illegal and contacted the U.S. Attorney’s Office. The U.S. Attorney’s Office and FBI installed recording devices on Judge Lackey’s telephone and in his chambers. The FBI later tapped Balducci’s cell phone and Patterson’s land line.

About a month after Balducci’s meeting with Judge Lackey, Backstrom contacted Balducci and told him that the strategy had changed and that the Firm wanted Judge Lackey to send the entire Jones suit to arbitration, rather than dismiss some of the claims. Balducci received an order along those lines to present to Judge Lackey. Over the course of the next month, Balducci twice visited Judge Lackey to discuss the order. After a few months, Judge Lackey asked Balducci: “If I help them, will they help me?” Balducci said he could “get that done.”

After meeting with Judge Lackey again a few days later, Balducci placed a call to the Firm. During the call, according to Balducci’s account, Balducci told Backstrom that Judge Lackey wanted $40,000 to enter an order compelling arbitration in the Jones suit. He asked Backstrom whether “y’all” or “they” would reimburse him for the $40,000, and Backstrom replied that he would get back to Balducci and let him know. 4 Two or three days later, Balducci purportedly talked to Backstrom again on the phone about the $40,000, and Backstrom said, ‘You’re covered.” 5

Balducci visited the Firm to pick up the arbitration order for Judge Lackey to sign and then delivered the proposed order with an initial installment of $20,000 to Judge Lackey. A few weeks later, on October 18, Balducci delivered $10,000 in cash to Judge Lackey and picked up the order. Later that day, Richard Scruggs told Balducci that he had developed a cover story to reimburse Balducci and Patterson for the $40,000 payment to Judge Lackey: the reimbursement would be under the cover of hiring Balducci for $40,000 to create a voir dire template for an upcoming trial. When Balducci delivered Judge Lackey’s order to the Firm that day, he saw Zach Scruggs and gave the order to him. Balducci then picked up the $40,000 reimbursement check and voir dire materials from Richard Scruggs’s desk.

Later that same day, Balducci telephoned the Firm and told Backstrom that he had delivered the copy of “those papers we’ve been waiting on.” Later in the telephone call, Balducci added, “[J]ust so you’ll know ... Dick hired me to prepare voir dire for the upcoming Katrina trial y’all got in Jackson County.” Backstrom said that was a “good deal for everyone.” The telephone call was recorded. In the weeks that followed, several members of the Firm, including Zach Scruggs, called Patterson “looking for Tim [Balducci]” about the status of the voir dire.

On November 1, 2007, Balducci met with Judge Lackey in his chambers to deliver the remaining $10,000 payment and pick up a newly revised arbitration order. After the meeting, an FBI agent approached Balducci, escorted him to an FBI vehicle, and showed him the video of him paying the bribe to Judge Lackey. Balducci immediately agreed to cooperate with the Government.

Balducci wore a body microphone to the Firm later that afternoon. In Backstrom’s office, Balducci told Backstrom that before Judge Lackey could file the order that *664 Balducci had delivered to Zach Scruggs two weeks earlier, the plaintiffs in the Jones litigation had filed a motion opposing sending the case to arbitration and that Judge Lackey had amended the order to reflect his consideration of the new filing. At this point, Zach Scruggs entered Backstrom’s office, and Balducci told him: “Zach, let me bring you up to speed. Alright, this is on the Judge Lackey deal.

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Bluebook (online)
691 F.3d 660, 2012 WL 3517367, 2012 U.S. App. LEXIS 17247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-david-scruggs-ca5-2012.