Monday, August 8, 2016

Rankin lawsuit charges lawyers cheated clients.

It is said that money is the root of all evil.  However, it is also true, that all too often it is the root of most lawsuits as well.  The War of the Shysters is currently raging in Rankin County, as attorney Chuck McRae brings battle to several plaintiff's attorneys over the settlement of a class action lawsuit. McRae and his clients claim the attorneys pocketed millions of dollars for themselves, while the plaintiffs recovered little. McRae sued Freese & Goss, Dennis Sweet, III, Sheila Bossier, and several John Does in Rankin County Chancery Court in May 2014.

Crystal Springs residents claimed they suffered from a chemical leak at the Kuhlman electrical plant. The plant is owned by Borg Warner. The defendant lawyers in the current lawsuit filed several class action lawsuits in federal court and alleged they represented over 3,000 plaintiffs.  The list was reduced to 348 plaintiffs.  However, the lawyers allegedly submitted another list of 3,249 victims in 2010 even though those "victims" were rejected by the Borg.  The victims in the second list did not actually sue the Borg, but the lawyers asked to include them  in any settlement.  The case went to mediation and Borg agreed to a settlement capped at a "multi-million dollar amount".  The settlement included the list that had over 3,000 "clients".

The defendants claim that McRae is just churning up baseless lawsuits.  They argued in a petition to the Mississippi Supreme Court:

This case is one of an ever-growing series of redundant lawsuits perpetuated by Respondent's counsel, Chuck McRae and his law firm, the McRae Law Firm (collectively, "McRae"). To date, McRae has filed nine lawsuits in Mississippi state and federal courts against the attorney Petitioners and others arising from the 20 I 0-2011 settlement of certain PCB litigation in Mississippi.....
Attorneys David Kaufman and Richard Cirilli of the Brunini Law Firm represent the defendants.

Wilson, Reyes, and Taylor claim they were never provided a copy of the master settlement agreement, the individual claim amounts, any settlement agreements with Medicaid or Medicare, the total amount of the settlement expense, and other information.

The lawsuit charges the defendants required the Borg to place all settlement funds in banks outside of Mississippi to avoid any accounting of the funds.  Some highlights of the complaint are:
Further,  the Defendants  delayed  payment to these Plaintiffs and instead  paid themselves without advising the Plaintiffs and others of their actions. The Defendants unjustly enriched themselves with all fees and expenses that they considered to be theirs in the latter part of 2010 and early 2011 to the detriment of the Plaintiffs and others that participated. The Defendants unjustly  enriched  themselves  by  paying  off  their  line  of  credit  in  excess of $1,000,000.00 (one million dollars) to a bank owned and operated by one (1) of the Defendants, Richard Freese, and investing their monies and operating their numerous businesses  all to the detriment  to the Plaintiffs  and  others.

The Defendants have never explained or shown the total expenses to the Plaintiffs or any of their representatives. The Defendants have refused to produce or verify a total amount of "expenses" to the Plaintiffs and others. The acts and omissions of the Defendants, commencing in 2007 through the negotiations that commenced in January, 2010 as well as  the acts and omissions of the distribution and withholding of the Plaintiffs and others' monies through the present time, has caused and continues to cause the Plaintiffs damage. The Defendants failed to secure the funds and invest the monies in an interest bearing account but allowed the Defendant Freese's bank to unjustly enrich itself and Freese. Further, the other Defendants allowed this to occur....

Unbeknown to the Plaintiffs and others, the Defendants, particularly Bossier, Freese, and Goss, agreed and negotiated with BorgWarner that the Defendants shall hold the settlement funds in trust and in escrow at Compass/SouthCity/First Partners Bank until certain specific conditions have been met for the release of funds to these Plaintiffs and others. These Defendants had to submit and determine, on or before September I , 2010, the amount each claimant was to receive, including attorney's fees and expenses. Also, the Defendants were to submit releases and settlement agreements of each claimant on or before September 21, 2010. Furthermore, the Defendants agreed to report to BorgWarner on or about January 5, 2011, the liens or alleged liens by Medicare and Medicaid, or any other governmental entity for each claimant including the plaintiffs. Also, the Defendants were to report to Medicare or Medicaid the existence of the funds available.

After the Defendants had agreed to all of the above, a written agreement as to the payment dates was signed. Upon information and belief, the Defendants caused the monies to be placed into SouthCity Bank, a state bank in Alabama, in which the Attorney Defendant, Richard Freese, was and is currently a part owner, incorporator, director, and shareholder. This bank, in the six (6) years of its existence, has changed its name three (3) times. It was originally doing business as Compass Bank, then SouthCity Bank, and is currently operating as First Partners Bank. The monies from BorgWarner were wire transferred on or about November 5, 2010 to Compass/SouthCity/First Partners Bank in Birmingham, Alabama. Five (5) days later, the Defendants disbursed $6,903,876.81 to themselves, but paid nothing to the Plaintiffs and other clients. See the Articles of Incorporation and Amendment attached as Exhibit "K." These Defendants never informed the Plaintiffs or any of the "clients" of the Defendants' interests in the bank nor did they put the monies into an interest bearing account for the benefit of the clients. These Defendants knew that it was going to take time to resolve the issues of each of the clients before full and final payment would be made. Instead, these Defendants looked only to their personal interest and secretly paid themselves within five (5) days approximately $7,000,000.00 (seven million dollars) into the operating account of Freese and Goss,PLLC in Birmingham. Simultaneously, they disbursed the following checks to themselves: Sheila M.Bossier $690,386.79; Richard A. Freese $862,441.61, Tim K. Goss $862,441.61, SouthCity Bank line of credit loans for Richard Freese $500,000.00, Tim K. Goss $500,000.00, and MedResolve, LLC $39,000 (These Defendants own this company). See Exhibit "J" attached hereto. In committing the acts complained of herein, Defendants' actions and misconduct breached their fiduciary duties for which the Defendants are liable to Plaintiffs for monetary damages....

Additionally,  Defendants paid their line of credit held  at Compass/SouthCity/First   Partners Bank five (5) days after receiving $7,000,000.00 (seven million dollars) from the  BorgWarner settlement, which was the money held in "escrow" account at Compass/SouthCity/First Partners Bank. With the placement of said monies into their account, Compass/SouthCity/First Partners  Bank  was able to use this money  for profit  and gave the Defendants  collateral  for their  in excess of $1,000.000.00 (one million  dollar)  per office line of credit.

By placing the monies into his own personal bank, Richard Freese and the other Defendants in effect used the clients' monies for their own personal gain. The Defendants took their monies out immediately but allowed their bank to use the clients' money interest free. Said Defendants were in no hurry to disburse clients' money because the Defendants and Compass/SouthCity/First Partners Bank received all the benefits. The Defendants made no attempt, knowing that it would take a lengthy time to disburse, of putting monies into an account where the clients would earn interest,nor did they advise or seek client approval of the use of the monies. The clients relied on the Defendants and in their fiduciary capacity to their detriment.

From this same bank account, the Defendants had Compass/SouthCity/First Partners Bank wire transfer monies to the operating account of Freese and Goss, PLLC at Wells Fargo  Bank. Freese and Goss, PLLC had maintained this operating account since their inception. Without disbursing any monies to their clients or notifying anyone, they immediately paid themselves and continued to convert over $3,300,000.00 (three million three hundred thousand dollars) to their personal use including payments to Bossier, their alter ego. .....

The Defendants  took, without authority,  and charged "settlement  administration" fees on a percentage basis of the Plaintiffs' total settlement. However, these Defendants never charged any of the other "clients" for settlement administration and therefore violated their fiduciary duties to the Plaintiffs. Further, these Defendants had no authority under any contract to charge "settlement administration" as either cost or fees. The Defendants profited from the Plaintiffs and others and thereby breached their fiduciary duties to the Plaintiffs and others.
These Defendants had BorgWarner place all of the monies outside the state of Mississippi whereby no accounting can be obtained as to the transaction of the money, even though it has been requested. This bank has always resisted producing any documents....
The lawsuit also claims the defendant attorneys never provided an itemized list of expenses.  Wilson et al argued the funds should be placed in a Mississippi bank or deposited with the Chancery Court  since the plaintiffs are Mississippi citizens.  It also asks the court to oversee the distribution of the settlement funds and requests an injunction against the defendants.

The defendants are charged with several counts of breach of attorney client contract, breach of fiduciary duty, fraudulent inducement,  tortius indifference with the original attorney contract, unjust enrichment and other torts.  The plaintiffs ask the court to order an accounting of all settlement proceeds, interest, damages, punitive damages, attorney's fees, and "disgorge" any attorney fees charged to plaintiffs by the defendants "for their conduct and breach of fiduciary duties."

The case has still not gone to trial as legal skirmishing and procedural warfare broke out between the two sides in Rankin County.  A second front in this war opened up at the Mississippi Supreme Court. (Click on this link to see copy of docket and filings in that court.)  The Court  transferred the case to circuit court in January.  The case is assigned to Circuit Judge Steve Ratcliff.  The plaintiffs posted a notice of a hearing scheduled for August 22 at 1:00 PM on the motion for the injunction and transfer of funds.

Hmm..... the Rojos one one side, the Baxters on the other.....




20 comments:

Anonymous said...

Anonymous comments on Chuck McRae? Pass the popcorn.

Anonymous said...

This is going to be interesting. McCrae has a great case. The defendants could get in legal trouble after all this shakes out.

Anonymous said...

I thought all class action lawsuits came out that way. Lawyers get rich and the people get a couple of $$.

Anonymous said...

3000 plaintiffs ????

Jackpot justice strikes again !!

Anonymous said...

Reminds me of that old lawyer joke about it being so cold the lawyers have their hands in their own pockets...except that times are so hard, lawyers have their hands in each other's pockets....

Anonymous said...

Interesting that a dirtbag plaintiff's whore like Chuck McRae would lay venue in Rankin Chancery. Guarantee you he wouldn't do so if he were taking the case to a jury.

But given the slimy, sleazy nature of Rankin County Chancellors of late (not including the elder Zebert), I imagine Chucky knew exactly what he was doing.

When I was in law school and he was still on the Supreme Court, I used to see him at George Street all the time. Liquored up, loud and obnoxious, denigrating the help and flipping people off across the name with a shouted "F you." The guy's a disgrace.

Anonymous said...

Exactly the reason Ole Miss an MC Law need to close. Less asshattery like this.

Anonymous said...

Usually people just get coupons.

Anonymous said...

before anybody got a check for 7 million....releases were had from all the people who were clients.

I guarantee you that not a single person who was not a client was a part of the settlement.

Chuck files some bogus shit...and this is more of the same.

Anonymous said...


SHANE LANGSTON, ATTORNEY IS CHUCK'S SON-IN-LAW AND LANGSTON IS A FORMER PARTNER OF LANGSTON FREEZE & SWEET, PLLC. LANGSTON MADE ABOUT $30 MILLION IN ONE YEAR AND MOVED TO FORT WORTH, TEXAS. THE WOLVES RUN IN PACKS. CHUCK IS A SLOB AND IS NOT VERY WELL THOUGHT OF---AS MY OLD DEAD MOM USE TO SAY---"THEY ARE NOTHING BUT WHITE TRASH".

LOOKS LIKE THE WOLVES ARE TURNING ON EACH OTHER---WOW, HOW UNUSUAL IS THAT ?????? IT'S PROVEN ONCE AGAIN---IT'S ALL ABOUT THE MONEY !!!!

Anonymous said...

I can tell that KF really enjoyed getting to write "the Borg" multiple times in this post.

Anonymous said...

What is the name of the bank they own?
In Mississippi?

"bank owned and operated by one (1) of the Defendants, Richard Freese"

Anonymous said...

3000 plaintiffs?!!! That's not that many people living in proximity to the Kuhlman Plant! This needs to be researched . Also, there IS a deep water well and elevated water tank very close to the plant. What did the dept of health ever have to say about this? I wouldn't drink the water in Crystal Springs if you held a gun to my head! This plant has poisoned the soul and it's a known fact. They need to bring the DEQ into this equation

Anonymous said...

I can tell that KF really enjoyed getting to write "the Borg" multiple times in this post.

Resistance is futile.

Putata Putata Putata Pop Putata said...

I just can't help recalling him on that white Harley slip-sliding around the Waterworks Curve at 88 mph.

He and Hopalong Kirksey made a swell pair up at Ratliff back in the day. Leather, boots, beer, tassles and all.

Anonymous said...

7:15, DEQ and the EPA have been involved with the Kuhlman plant and Borg-Warner since early 2000. There have been rounds of civil lawsuits and settlements in addition to the ones that are the subject of McRae's suit. This isn't a new event by any means.

Anonymous said...

Sure they cheater their clients, they are lawyers. They have a license to steal.

Mmm K Thanks.. said...

3:14; On your family computer - that little key that says Caps Lock - Press it once.

Anonymous said...

Federal District Court Judge Tom Lee apparently was not impressed with McRae's antics. He dismissed one of the class action lawsuits McRae filed on behalf of the lawyers' former clients and had some really revealing statements in his rulings about what the cases really are about:

As defendants have repeatedly pointed out, this was lawyer-driven litigation. Plaintiffs, in the court's view never even fully understood what the litigation was about.

No serious argument can be made that Bobby Gordon is an adequate class representative. The deposition excerpts presented by plaintiffs in support of the class certification motion demonstrate that Gordon has barely a clue what this case is about. That is, she lacks even a basic understanding of the litigation.

In fact, as the court observed in its opinion denying class certification, plaintiffs herein did not seek out counsel to file suit but rather were solicited to do so, and they do not appear to be more than vaguely aware (if at all) of how they have allegedly been wronged.


I read in some of the papers in those cases that McRae apparently was attempting to use the lawsuits he filed on behalf of the lawyers' former clients as leverage to force the lawyers to settle with his client attorney Don Mitchell. Mitchell and the lawyers McRae sued in the Rankin County lawsuit apparently jointly represented the PCB claimants and have a pending fee dispute case. Looks like that plan is not working so well.

Anonymous said...

99% of lawyers give the rest a bad name....


Recent Comments

Search Jackson Jambalaya

Subscribe to JJ's Youtube channel

Archives

Trollfest '09

Trollfest '07 was such a success that Jackson Jambalaya will once again host Trollfest '09. Catch this great event which will leave NE Jackson & Fondren in flames. Othor Cain and his band, The Black Power Structure headline the night while Sonjay Poontang returns for an encore performance. Former Frank Melton bodyguard Marcus Wright makes his premier appearance at Trollfest singing "I'm a Sweet Transvestite" from "The Rocky Horror Picture Show." Kamikaze will sing his new hit, “How I sold out to da Man.” Robbie Bell again performs: “Mamas, don't let your babies grow up to be Bells” and “Any friend of Ed Peters is a friend of mine”. After the show, Ms. Bell will autograph copies of her mug shot photos. In a salute to “Dancing with the Stars”, Ms. Bell and Hinds County District Attorney Robert Smith will dance the Wango Tango.

Wrestling returns, except this time it will be a Battle Royal with Othor Cain, Ben Allen, Kim Wade, Haley Fisackerly, Alan Lange, and “Big Cat” Donna Ladd all in the ring at the same time. The Battle Royal will be in a steel cage, no time limit, no referee, and the losers must leave town. Marshand Crisler will be the honorary referee (as it gives him a title without actually having to do anything).


Meet KIM Waaaaaade at the Entergy Tent. For five pesos, Kim will sell you a chance to win a deed to a crack house on Ridgeway Street stuffed in the Howard Industries pinata. Don't worry if the pinata is beaten to shreds, as Mr. Wade has Jose, Emmanuel, and Carlos, all illegal immigrants, available as replacements for the it. Upon leaving the Entergy tent, fig leaves will be available in case Entergy literally takes everything you have as part of its Trollfest ticket price adjustment charge.

Donna Ladd of The Jackson Free Press will give several classes on learning how to write. Smearing, writing without factchecking, and reporting only one side of a story will be covered. A donation to pay their taxes will be accepted and she will be signing copies of their former federal tax liens. Ms. Ladd will give a dramatic reading of her two award-winning essays (They received The Jackson Free Press "Best Of" awards.) "Why everything is always about me" and "Why I cover murders better than anyone else in Jackson".

In the spirit of helping those who are less fortunate, Trollfest '09 adopts a cause for which a portion of the proceeds and donations will be donated: Keeping Frank Melton in his home. The “Keep Frank Melton From Being Homeless” booth will sell chances for five dollars to pin the tail on the jackass. John Reeves has graciously volunteered to be the jackass for this honorable excursion into saving Frank's ass. What's an ass between two friends after all? If Mr. Reeves is unable to um, perform, Speaker Billy McCoy has also volunteered as when the word “jackass” was mentioned he immediately ran as fast as he could to sign up.


In order to help clean up the legal profession, Adam Kilgore of the Mississippi Bar will be giving away free, round-trip plane tickets to the North Pole where they keep their bar complaint forms (which are NOT available online). If you don't want to go to the North Pole, you can enjoy Brant Brantley's (of the Mississippi Commission on Judicial Performance) free guided tours of the quicksand field over by High Street where all complaints against judges disappear. If for some reason you are unable to control yourself, never fear; Judge Houston Patton will operate his jail where no lawyers are needed or allowed as you just sit there for minutes... hours.... months...years until he decides he is tired of you sitting in his jail. Do not think Judge Patton is a bad judge however as he plans to serve free Mad Dog 20/20 to all inmates.

Trollfest '09 is a pet-friendly event as well. Feel free to bring your dog with you and do not worry if your pet gets hungry, as employees of the Jackson Zoo will be on hand to provide some of their animals as food when it gets to be feeding time for your little loved one.

Relax at the Fox News Tent. Since there are only three blonde reporters in Jackson (being blonde is a requirement for working at Fox News), Megan and Kathryn from WAPT and Wendy from WLBT will be on loan to Fox. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both and a torn-up Obama yard sign will entitle you to free drinks served by Megan, Wendy, and Kathryn. Get your tickets now. Since this is an event for trolls, no ID is required. Just bring the hate. Bring the family, Trollfest '09 is for EVERYONE!!!

This is definitely a Beaver production.


Note: Security provided by INS.

Trollfest '07

Jackson Jambalaya is the home of Trollfest '07. Catch this great event which promises to leave NE Jackson & Fondren in flames. Sonjay Poontang and his band headline the night with a special steel cage, no time limit "loser must leave town" bout between Alan Lange and "Big Cat"Donna Ladd following afterwards. Kamikaze will perform his new song F*** Bush, he's still a _____. Did I mention there was no referee? Dr. Heddy Matthias and Lori Gregory will face off in the undercard dueling with dangling participles and other um, devices. Robbie Bell will perform Her two latest songs: My Best Friends are in the Media and Mama's, Don't Let Your Babies Grow up to be George Bell. Sid Salter of The Clarion-Ledger will host "Pin the Tail on the Trial Lawyer", sponsored by State Farm.

There will be a hugging booth where in exchange for your young son, Frank Melton will give you a loooong hug. Trollfest will have a dunking booth where Muhammed the terrorist will curse you to Allah as you try to hit a target that will drop him into a vat of pig grease. However, in the true spirit of Separate But Equal, Don Imus and someone from NE Jackson will also sit in the dunking booth for an equal amount of time. Tom Head will give a reading for two hours on why he can't figure out who the hell he is. Cliff Cargill will give lessons with his .80 caliber desert eagle, using Frank Melton photos as targets. Tackleberry will be on hand for an autograph session. KIM Waaaaaade will be passing out free titles and deeds to crackhouses formerly owned by The Wood Street Players.

If you get tired come relax at the Fox News Tent. To gain admittance to the VIP section, bring either your Republican Party ID card or a Rebel Flag. Bringing both will entitle you to free drinks.Get your tickets now. Since this is an event for trolls, no ID is required, just bring the hate. Bring the family, Trollfest '07 is for EVERYONE!!!

This is definitely a Beaver production.

Note: Security provided by INS
.