Senior U.S. District Judge R. David Proctor heavily sanctioned attorney Terrence Collingsworth in the Northern District of Alabama on Thursday.
In January, a jury with the U.S. District Court for the Northern District of Alabama returned a verdict on all counts in favor of Drummond Company and against Collingsworth and his organization, International Rights Advocates (IRAdvocates).
The jury concluded Collingsworth and IRAdvocates made false and defamatory accusations that Drummond supported paramilitary groups in Colombia. The jury further found Collingsworth and IRAdvocates violated the Racketeer Influenced and Corrupt Organizations Act (RICO) through extortion, witness bribery, witness tampering, wire fraud, money laundering, obstruction of justice and conspiracy.
The jury determined there was clear and convincing evidence that Collingsworth either knew or recklessly disregarded that his accusations against Drummond were false when he made them.
In the lawsuits Drummond filed — one for defamation and the other for extortion, witness bribery, witness tampering, wire fraud, money laundering, obstruction of justice, and conspiracy under RICO — the jury awarded Drummond $52 million on the defamation claim and $68 million on the RICO claims. The RICO award is automatically tripled under the RICO statute, making the total value of the award $256 million.
Proctor referred the matter to the U.S. Attorney of the Northern District to investigate whether Collingsworth has engaged in any criminal conduct. Proctor also ordered Collingsworth to pay the legal fees and costs incurred by Drummond as a result of Collingsworth’s “bad-faith misconduct.”
“The record establishes that Collingsworth’s bad-faith conduct in this and the related litigation is extensive. It unquestionably supports an award of sanctions against him,” Proctor said in the filing on Thursday. “The imposition of sanctions is not based simply on the RICO jury verdict. To be clear, the jury’s RICO verdict certainly supports a finding that Collingsworth’s conduct warrants sanctions. After all, jury found the Collingsworth and IRAdvocates had engaged in (1) witness bribery; (2) witness tampering; (3) obstruction of justice; (4) money laundering; (5) wire fraud; and (6) extortion. But, the factual record establishing Collingsworth’s bad faith conduct is much more extensive. That record includes, among other things: (1) the record before the court, as summarized above, (2) the evidentiary record supporting the court’s crime fraud order finding that Drummond had made a prima facie showing of the crimes of “fraud on the court, witness bribery, [and] suborning perjury,” (3) the RICO summary judgment record; (4) the court’s spoliation sanctions record and order, (5) Collingsworth’s trial testimony; and (6) the jury’s RICO verdict.”
Trey Wells, lead trial lawyer of the law firm Starnes Davis Florie LLP that represented Drummond in the litigation, told 1819 News on Friday, “This is a just result.”
“What happened to Drummond is unacceptable, especially when perpetrated by an officer of the court,” Wells said. “We hope with the jury’s verdict and the court’s ruling, no one else will have to endure such a coordinated smear campaign.”
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