“While Scruggs made the arrangements for these payments, the other members of the SKG joint venture knew or should have known that the payments were being made, and I am of the opinion that their failure to take timely and reasonable remedial steps or to object to this arrangement amounts to a ratification of Scruggs' actions,” said Judge Senter, in his memorandum opinion. “While the other ethical misconduct alleged by State Farm and Renfroe are substantial, the payments to the Rigsby sisters are, in and of themselves, sufficient to warrant disqualification. It is apparent to me, from my review of the deposition testimony of the Rigsby sisters, that there was no legitimate reason for these payments and that the 'consulting' work that ostensibly justified these payments was a sham.”

In what might be the most devastating blow to those who filed lawsuits against State Farm and E.A. Renfroe, Judge Senter also barred the Rigsby sisters from testifying as witnesses in any actions pending against the two companies. That includes any documents the sisters supplied to SKG or KLG, unless it is shown that the documents were obtained through ordinary methods of discovery, something that is unlikely to occur.

What about those who are suddenly left without legal representation? They were given 45 days to retain new counsel or to notify the Court that they will represent themselves. If they fail to do either, their cases could be immediately dismissed without prejudice.

To read Judge Senter's entire opinion, click here.

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