A hearing to determine penalties for 16 lawyers in an ethics violation has been postponed to 10 a.m. June 24 in federal court in Fort Smith, according to an order filed late Wednesday by Chief U.S. District Judge P.K. Holmes.
Holmes decided April 14 that plaintiff and defense lawyers "have jointly abused the federal court system" in moving Adams v. United Services Automobile Association from federal court to state court last year.
Their goal was to put a proposed settlement in the state court venue, where rules make it easier to get the settlement approved, Holmes' order said.
The settlement was favorable to plaintiffs' lawyers and the defending insurance company at the expense of the class of policyholders who were harmed, Holmes wrote. The lawyers knew it would be difficult to get the same settlement approved in Holmes' court, the order said.
The hearing was initially set for June 10.
The penalties include requiring the lawyers to submit letters in future class-action cases saying they have violated ethics rules.
Eleven of the attorneys are based in Arkansas. One of them is John Goodson of Texarkana, a University of Arkansas System trustee and political donor who is married to Arkansas Supreme Court Justice Courtney Goodson. Other plaintiffs' lawyers include: Goodson partner Matt Keil of Texarkana; W.H. Taylor, William Putman, Stevan Vowell and Timothy Myers of Fayetteville; Tom Thompson and Casey Castleberry of Batesville; Stephen Engstrom of Little Rock. Defense attorneys include Lyn Pruitt of Little Rock.
Other plaintiffs' and defense attorneys are based in Texas, Oklahoma, Pennsylvania and Connecticut.
Metro on 04/22/2016