In the latest development in the drawn-out litigation between attorney Anthony Thurber and former client Marilyn Perkins, a state judge has at Perkins' request dismissed her suit against Thurber. She had been seeking more than $200,000 in damages she said she suffered from Thurber's representation of her and her son.

Thurber, however, has filed a separate suit against Perkins and KTVX, alleging she defamed him in interviews given to the TV station. He says Perkins falsely accused him of "robbing" her son, John, of $16,666 of a $50,000 settlement Thurber obtained for the boy.The money was actually owed to Perkins' health insurance company, Pacific Heritage Assurance, according to court documents and sworn testimony in the case.

John, 13, was injured in August 1989 when the bicycle he was riding was struck by a car. The injury left him blind and brain-damaged.

Perkins hired Thurber, her third attorney, to represent John. Before hiring Thurber, Perkins signed a form authorizing her health insurance company to receive part of any settlement she got from the driver of the car or others. Her health insurer paid more than $120,000 for John's medical care.

When the driver's insurance company agreed to settle the case, Perkins' health insurance company and Perkins agreed that Pacific Heritage would accept $16,666 as the full payment of its lien against the settlement, court documents say.

The driver's insurance company paid $50,000 in April 1992 for John's injuries. Third District Judge Kenneth Rigtrup signed an order April 15, 1992, approving the settlement set forth in Perkins' request for court approval.

The described settlement was $16,666 to Thurber as his fee, $16,666 to Perkins for John's care, less various costs and liens, and $16,666 to Perkins' health insurance company.

Thurber paid Perkins John's share of the settlement, but he delayed sending the $16,666 to the health insurance company. Earlier this year, Thurber pleaded guilty to attempted misuse of funds by a fiduciary stemming from the delayed payments to the insurance company.

Third District Judge Tyrone Medley sentenced Thurber to zero to five years for the offense, then suspended all but 30 days in jail. Thurber begins serving his sentence Monday.

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According to Thurber, he actually overpaid Perkins by more than $1,000.

"Neither Marilyn Perkins, nor her son, John, suffered any loss of any kind as a result of my delay in paying the health insurance company. He wasn't denied a computer or anything else he wanted or needed," Thurber said.

Thurber's payment to the health insurance company was delayed, in part, by a writ of garnishment Perkins had obtained on $30,000 of Thurber's money he was to receive as a fee from a settlement in another case.

Thurber eventually obtained a court order allowing the $16,666 to be paid to Pacific Heritage Assurance Co. The company received payment in full in September 1994.

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