Court: Lawyers managing Murdaugh’s assets can’t act for him in federal lawsuit

COLLETON COUNTY, S.C. (FOX Carolina) - A court ruled on Tuesday that the lawyers who are overseeing Alex Murdaugh’s assets cannot act on his behalf in a federal fraud lawsuit he faces.

Nautilus Insurance Company is suing Murdaugh and others after a $4.3 million settlement was paid out for the death of housekeeper Gloria Satterfield in 2018. Murdaugh is accused of and has admitted to stealing the money instead of giving it to Satterfield’s sons.

Attorneys Peter McCoy and John Lay have been appointed co-receivers to control Murdaugh’s money and property as he faces multiple lawsuits. They said in an earlier court filing they were not been able to meet with Murdaugh while he is incarcerated.

Murdaugh is serving two terms of life in prison for murdering his wife Maggie and youngest son Paul in 2021 at their Colleton County home. It is the same home where Satterfield suffered a severe head injury after falling down the front steps.

McCoy and Lay filed a motion to dismiss the federal lawsuit from Nautilus or have it handled by a state court instead. They also responded on Murdaugh’s behalf to the lawsuit in June to keep him from being found in default while he awaited trial for murder.

Nautilus asked for the court to strike the documents since they were filed by Murdaugh’s co-receivers. McCoy and Lay opposed the motion, but Murdaugh, himself, responded in support of it.

According to the new order filed Tuesday, Murdaugh argued that the co-receivers can make “appropriate motions as interested parties” but can’t act for him personally because “Murdaugh is a competent adult not under any conservatorship.”

U.S. District Judge Richard Gergel sided with Nautilus, finding that McCoy and Lay cannot appear, plead or respond to discovery for Murdaugh in the federal case.

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