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38 Studios' recoverable resources are 'being eaten up,' lawyer says

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The lead attorney for the Rhode Island Commerce Corp., Max Wistow, says that 38 Studios' recoverable resources are "being eaten up very rapidly" and is encouraging lawsuit settlement, The Associated Press reports.

Wistow also told a state Senate committee this week that defendants' insurance policies could pay costs outside of the policy limits. His sense of urgency seems to indicate a belief that the longer it takes to resolve a lawsuit or settlement, the less will be recovered.

The Providence Journal reports that Wistow pointed to precedents that he believes helped settle prior lawsuits.

"But for the passage of the statute enabling this type of settlement, those cases would not have been settled," Wistow said. "We feel very strongly that this would be very beneficial."

Earlier this month, Wistow said he's taken part in "general discussions" about settling the case, which was was filed in late 2012 against the studio, its executives like former Red Sox pitcher Curt Schilling and those at the former Rhode Island Economic Corp. (now known as the Rhode Island Commerce Corp.) involved in the failed $75 million loan guarantee.

The AP also reports that lawmakers are reviewing a bill "designed to encourage settlement talks," which would shield those who settle "from a lawsuit filed by a co-defendant over damages that co-defendant is found liable for."

In early January, Governor Lincoln Chafee's administration submitted legislation to the Rhode Island General Assembly encouraging settlement.