Former Scruggs venturers Lee Young and Charles Mikhail have filed a lawsuit today in US District Court alleging, among other things, that Dickie Scruggs materially breached an agreement on the payment of tobacco fees.

This is the next in a long line of lawsuits alleging bad faith and fraud against Scruggs. Other lawsuits have been brought by Alwyn Luckey, Roberts Wilson (twice), and Johnny Jones and their related entities.

The nexus of the disagreement stems from the Alwyn Luckey judgement. Young and Mikhail claim that Scruggs unilaterally began to deduct moneys from their quarterly tobacco payments after the Luckey suit. Furthermore, they allege that Scruggs deducted $3,000,000 worth of fees that went in the criminal scheme for Judge DeLaughter to pay Joey Langston, Tim Balducci and Ed Peters from gross funds that they should have been paid from.

There is a tremendous amount of material in the 86 page complaint and attached exhibits, which includes the original signed copy of their tobacco fee split agreement with Young and Mikhail.

We will be updating this post with more shortly.