Projo 7 to 7 News Blog

PROVIDENCE, R.I. -- Lawyers for the victims of The Station nightclub fire today filed papers asking the U.S. District Court to approve a proposed plan for distributing $176 million in settlement offers to the more than 300 victims who suffered injuries or lost loved ones in the catastrophic fire.

The proposed plan for distributing the settlement proceeds was devised by Duke University law school professor Francis E. McGovern.

Lawyers for the victims also asked the court to appoint Jeffrey Dahl, of Faribault, Minn., as a neutral verification expert who would review all documents submitted by the fire victims to make sure that the information they provide on damage claim forms is accurate.

The lawyers are also asking that the court appoint Massachusetts lawyer Paul A. Finn as administrator for a trust fund that needs to be established as a repository for the settlement proceeds that have been offered by all of the parties who have been sued by the fire victims.

Finn has been involved in mediating many of the Station fire settlement offers and is a practicing attorney as well as president of Commonwealth Mediation and Conciliation. Since 1992, Finn has mediated and/or arbitrated over 5,000 claims in Massachusetts, Rhode Island, New York, Pennsylvania, New Jersey, Mississippi and California, including clerical sexual abuse claims, medical malpractice complaints and general liability and business disputes.

PROVIDENCE -- The chief disciplinary counsel of the Rhode Island Supreme Court has filed ethics charges against Cranston lawyer Paul B. McCarthy in connection with a mortgage refinancing that he was not authorized to conduct in the State of New Jersey.

David D. Curtin, the disciplinary counsel, is asking the court's disciplinary board to hold a public hearing on the ethics complaint. The board could take action against McCarthy ranging from a censure to disbarment.

According to papers filed with the board, McCarthy is currently licensed to practice only in Rhode Island and Massachusetts but went to New Jersey last July to conduct a closing on a $320,000 mortgage refinancing for a mother and son who jointly own property in Newport.

Curtin alleges that when McCarthy arrived at the mother's home in New Jersey, the son was not present so the lawyer instructed his father to sign the son's name to the mortgage deed and other closing documents, which the father did. McCarthy then notarized the mortgage deed, indcating on the notary seal that the deed had been signed by the mother and son one day earlier in Cranston, Rhode island.

"Upon information and belief, respondent intentionally misrepresented where and when the documents had been signed in violation of his obligation as a notary public," Curtin alleges.

At the time of these events, McCarthy practiced law with Pasquale A. Scavitti III at 1225 Cranston St., Cranston. According to Curtin, McCarthy traveled to New Jersey to conduct the closing at Scavitti's direction. Scavitti was the designated settlement agent on the loan documents.

Last August, Scavitti, 46, of Cranston, admitted to stealing more than $2.5 million from homeowners who were refinancing or buying new homes. He has been disbarred but has still not been criminally charged. Law-enforcement authorities are investigating, Curtin said.

Curtin said today that McCarthy has not been implicated in any way with the missing funds.

PROVIDENCE -- Patrick T. Conley has withdrawn his candidacy for the job of Rhode Island chief justice. He says Governor Carcieri dislikes him so much that he wouldn't ever appoint him, even if he were to become a finalist for the position.

Conley, a lawyer/historian who taught for many years at Providence College, said that Carcieri "has already shown his animosity toward me by twice vetoing a historian laureate bill passed unanimously by the General Assembly with me in mind." And lately, he said "we have exchanged three sharply worded letters to the editor of The Providence Journal which evidence an extreme mutual disrespect."

Conley also cited two other reasons for bowing out of contention for the job of chief justice, which is open now due to the retirement of Frank J. Williams, who resigned his position Dec. 31 but continues to sit on the court.

He is currently involved in a controversial redevelopment of property on the Providence waterfront off of Allens Avenue, a project he wants to continue. And, he has just been elected president of the newly reorganized board of directors of the Heritage Harbor Museum.

Extra: Read Conley's withdrawal letter