CHARLESTON – A prominent Charleston attorney who has been sued by former clients for allegedly mishandling hundreds of asbestos and flood damages cases has filed for bankruptcy.
Jim Humphreys said Jan. 13 that his law firm James F. Humphreys & Associates has filed for Chapter 11 bankruptcy. The firm is entering bankruptcy to “resolve all pending and potential claims against the firm in one forum and in a timely and equitable manner,” according to a statement from the firm.
In the statement, Humphreys said the filing should not affect the day-to-day operations of the firm and cases it currently is handling. He said he hopes the issues can be “sorted out quickly and effectively in bankruptcy court, ultimately enabling the firm to continue offering effective legal representation.”
“Our first and foremost obligation is to our clients,” Humphreys said. “As painful and as difficult as it is to take this step, this action will allow us to move quickly and transparently to identify and pay these obligations, and settle any legitimate claims against the firm.
“I profoundly regret any inconvenience this situation has caused and I am determined to make sure each and every one of these clients is made whole.”
In October, Humphreys and his firm were listed in a class action by people who allege the firm mishandled a mass tort asbestos exposure case against Celotex. The number of potential plaintiffs exceeds 500, according to the complaint.
In the new Celotex complaint, McCormick claims Humphreys and his firm negligently failed to follow procedure for properly submitting the plaintiffs’ claims against Celotex.
That came after a 2014 lawsuit in which Humphreys and his firm allegedly “failed completely” to pursue claims that an elderly Virginia couple’s home and property were damaged by flooding and rains resulting from Hurricane Camille in July 2001.
Charleston attorney Rod Jackson is representing both the Celotex plaintiffs and the Virginia couple in their claims against Humphreys.
Jackson said a pre-trial hearing is scheduled for Jan. 15 in the case of Ira Calvary Horne and Mavis Horne, the Virginia couple with the flood claim against Humphreys.
“Individually, he didn’t file bankruptcy,” Jackson said. “So, we think we can proceed to trial Feb. 23. That’s our position, anyway.
“I quickly looked at the bankruptcy filing, but it seems to say the firm owes thousands of people lots of money. I guess I don’t even know the magnitude here. It sounds like the magnitude is pretty significant.
“He can run, but he can’t hide. All of this is going to come out. He doesn’t want to go to trial, and he’s trying to stop us from trying the case.”
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Humphreys is a former member of the West Virginia House of Delegates and state Senate. He also ran for the U.S. House of Representatives in 2000 and 2002, losing to Shelley Moore Capito both times.