Jackson Jambalaya

Attorney Richard Schwartz filed an answer in the Shirley Douglas bankruptcy estate on April 29. Ms. Douglas suffered injuries in an automobile collision. Mr. Schwartz negotiated a $500,000 settlement with the insurance company on her behalf. However, Ms. Douglas filed Chapter 13 bankruptcy before the settlement took place. Mr. Schwartz hired attorney Vann Leonard to apply to the bankruptcy court for his contract fee of $172,414 and deposit the remainder of the settlement with the bankruptcy court.

The court awarded Mr. Schwartz his fee. Ms. Douglas and the bankruptcy trustee filed suit against Mr. Schwartz after attorney Vann Leonard embezzled the remaining $327,000 from the estate. Mr. Leonard pleaded guilty in federal court on February 24 to one count of embezzlement. He currently awaits sentencing and is incarcerated in the Rankin County jail on contempt of court charges in an unrelated case.

The court ordered Mr. Schwartz to return his fee to the bankruptcy estate in January. Mr. Schwartz takes issue with this and a few other things in his answer. Mr. Schwartz blames everyone else for the loss of Ms. Douglas' money: "If Plaintiff has suffered injuries or damages, those mJunes and/or damages were proximately caused or contributed to solely by the negligent and/or intentional acts, wrongs, or omissions of other persons, entities, forces or things over which these defendants had no control and/or for which they are not responsible."

Mr. Schwartz then argues that imposition of punitive damages would violate his constitutional rights. Mr. Schwartz then points out the court took back his fee and claims he "is entitled to the full sum" even though he "admits that $33,477 of the proceeds... were not used to pay Ms. Douglas' medical bills because Vann Leonard misappropriated the proceeds." Mr. Schwartz even admits he hired Mr. Leonard in the past to obtain approval for his fees in bankruptcy cases." Attorneys formerly employed by Mr. Schwartz have informed this correspondent Mr. Schwartz hired Mr. Leonard on a regular basis whenever approval was needed from a bankruptcy judge to obtain his fees from a settlement. What is troubling for Mr. Schwartz is he admits there was no provision in the contract with Ms. Douglas "that authorized Schwartz and Associates to tender the $500,000 in settlement proceeds to Vann F. Leonard."

So to recap: Mr. Schwartz gives back his $172,000 to the court after the judge tells him to do so but still says its his money, says it's everyone's fault but his, but then admits Vann was his boy but it's still not his fault.

The plot thickens.