Phillips criminal case lawsuits could cost Smith County $300K

TYLER – Lawsuits and claims from the Phillips family related to their criminal cases could cost Smith County an estimated $300,000. County officials said this in a commissioner’s court meeting on Tuesday. According to our news partner KETK, Assistant District Attorney Thomas Wilson provided the briefing on pending or contemplated litigation against the county involving Karen, Derek and Lance Phillips, as well as family friend Cody Voss.

Smith County Clerk Karen Phillips originally filed her lawsuit against Smith County in June 2023. She is seeking $10 million in damages in connection to her March 2023 arrest. The lawsuit was paused by the court pending the outcome of her criminal case, and Wilson said that “as a result of the guilty finding by the jury I would anticipate that this claim will no longer go forward.”

Derek Phillips and Voss filed a joint lawsuit seeking $150.5 million from the county in damages in connection to the incident, and after his conviction Derek’s claims were dismissed while Voss’s claims remain pending.

According to Wilson, Voss has said he is willing to settle the lawsuit for $4 million, however each commissioner present at the meeting said they were against a settlement in these cases. All commissioners were present at the meeting except for Terry Phillips, who goes into a runoff for his seat as Precinct 3 Commissioner on May 28.

Wilson said in the meeting that given the time and expenses by the district attorney’s office and the need for special prosecutors the approximate cost of these cases exceeds $200,000.

Also discussed at the meeting, that Lance Phillips has not yet filed but plans to file a claim against Smith County, however, Wilson noted that the claim is being filed under a new Texas Association of Counties coverage and will require a $50,000 deductible. This will require the county to spend $50,000 on the claim, and another $50,000 claim could potentially be used if the case continues.

Currently the cases have cost the county an estimate of more than $200,000 with the potential to cost up to $300,000.