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Breaking: Jessica Cutler Files for Bankruptcy

Jessica Cutler Washingtonienne Abovethelaw Above the Law blog.jpgThis news is a bit mystifying to us. From the Associated Press:

Jessica Cutler, the former Senate aide whose online sex diary landed her a book deal and a Playboy photo spread but got her kicked off Capitol Hill, has filed for bankruptcy....

Cutler has spent much of her time [recently] fending off a lawsuit by ex-boyfriend and fellow DeWine staffer Robert Steinbuch, who claims Cutler's blog publicly humiliated him. He is seeking more than $20 million in damages.

In court documents filed in the case Thursday, however, Cutler says she can't even pay her American Express bill, legal fees and student loans. She submitted to the judge a copy of a Chapter 7 bankruptcy petition filed in New York dated Wednesday.

The lawsuit is being closely watched by online privacy groups and bloggers because the case could help establish whether people who keep online diaries are obligated to protect the privacy of the people they interact with offline.

Our advice to Jessica: retain William P. Smith to represent you in bankruptcy court. You can pay his fees in "Happy Meals."

On a more serious note: How did the Washingtonienne wind up in this financial predicament?

We're not so good with math, so please help us out. We run some numbers, after the jump.

Okay, here's how we see it. Jessica Cutler, aka "Washingtonienne," landed a $300,000 book deal in the wake of the blog scandal. Her book was picked up for possible conversion into a half-hour HBO comedy (Sarah Jessica Parker producing) -- presumably more moolah. And, according to rumor, Cutler earned a six-figure payday for posing nude in Playboy.

So where did all that money go? Is it possible for one person to blow that much on, as Cutler says on her personal website, "slutty clothes and drugs"?

Update: Maybe we've been overly optimistic. Per Ted Frank:

What money? Assume $300k for the book deal and $100k for Playboy (the latter seems high). The agent takes at least $40k. Taxes gobble up another $100k (she lives in DC). Switching lawyers all the time can't be free, and it's been three years since her last big paycheck.

Sex blogger files for bankruptcy [Associated Press]

Comments
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1 Posted by anon | Permalink Friday, June 1, 2007 1:25 PM

Unfortunately, Steinbuch used the law to get revenge against someone. He got revenge, not because Ms. Cutler did anything illegal, but because it costs so much money to defend a lawsuit.

The transaction cost of the legal system is obscene. In most cases 80% of money paid by a liable defendant goes to attorneys.

This is why the modern legal system is not a tool to remedy harms, but rather a tool for retribution and vengeance.

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2 Posted by NBS | Permalink Friday, June 1, 2007 1:34 PM

Perhaps this is her strategy to stay the proceedings in Staubach's civil case against her?

Happens all the time, not that I have to tell this crowd.

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3 Posted by anon | Permalink Friday, June 1, 2007 1:41 PM

are those her boobs?

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4 Posted by anon | Permalink Friday, June 1, 2007 1:42 PM

I read in another article that she's already in the hole for six figures of legal fees. So even if Steinbuch loses his case, he still gets his revenge.

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5 Posted by guest | Permalink Friday, June 1, 2007 1:47 PM

Nice knockers. I share 1:41's question.

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6 Posted by anonymous | Permalink Friday, June 1, 2007 1:54 PM

1:41 & 1:47 -

She claims the shot on her "personal website" (linked to by Lat) is her boobs

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7 Posted by guest | Permalink Friday, June 1, 2007 2:17 PM

I believe it. Any professional would have airbrushed the wrinkles out of the cleavage.

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8 Posted by anon | Permalink Friday, June 1, 2007 2:58 PM

this is why you should have two-way fee shifting in non-public interest cases (i.e. the English rule on fees). there is no reason legislatures cannot introduce such a rule by statute

that way if what's his name's lawsuit really is baseless then HE pays those fees at the end

mind you, half of us would be out of a job if the law discourages baseless lawsuits (ask yourself how often you get paid to defend such a lawsuit)

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9 Posted by Vice Squad | Permalink Friday, June 1, 2007 2:58 PM

What makes anyone think she's "paying" her legal fees in cash?

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10 Posted by guest | Permalink Friday, June 1, 2007 3:03 PM

This is what she deserves. It seems courts can deliver justice long before the gavel strikes.

Maybe she will have to downgrade from publicity whore status.

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11 Posted by anon | Permalink Friday, June 1, 2007 3:14 PM

Did somebody say "nice knockers?"

http://sayanythingblog.com/entry/more_on_jessica_cutler/

Not safe for work

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12 Posted by guest | Permalink Friday, June 1, 2007 4:27 PM

"She looks like she's been rode hard and put away wet." That's terrific.

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13 Posted by Nosy | Permalink Friday, June 1, 2007 4:52 PM

Given the nature of her case, I'd think groups/firms interested in free speech & Internet would take the case pro bono.

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14 Posted by Nosy | Permalink Friday, June 1, 2007 4:52 PM

Given the nature of her case, I'd think groups/firms interested in free speech & Internet would take the case pro bono.

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15 Posted by getitright | Permalink Friday, June 1, 2007 4:53 PM

Hey david I think jessica actually lives in New York.

At least that's what your old friends say.

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16 Posted by guest | Permalink Friday, June 1, 2007 4:58 PM

Getitright:

1. That was Ted Frank's comment, not Lat's comment.

2. The question is when Cutler moved to NYC relative to when she got her book deal $$$. It's possible that she still lived in DC when that income came in (because it was a few years ago).

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17 Posted by Nosier | Permalink Friday, June 1, 2007 5:02 PM

Given the nature of her case, I'd think groups/firms interested in free speech and Internet would take the case pro boner.

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18 Posted by anon | Permalink Friday, June 1, 2007 8:40 PM

are her fake tits property of the bankruptcy estate?

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19 Posted by guest | Permalink Friday, June 1, 2007 9:28 PM

1:25 -

"In most cases 80% of money paid by a liable defendant goes to attorneys."

What planet do you live on, where plaintiff's attorneys take an 80% contingency fee?

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20 Posted by guest | Permalink Friday, June 1, 2007 10:24 PM

3:14: It's all a matter of presentation.

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21 Posted by anonymous | Permalink Saturday, June 2, 2007 10:45 AM

9:28, I think she's including money defendant pays defense lawyers.

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22 Posted by anonymous | Permalink Saturday, June 2, 2007 10:48 AM

Look at this picture of Jessica. http://www.jessicacutleronline.com/i-love-jamaican-patties.jpeg (or click on my name.)
Kinda busted.

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23 Posted by Anon | Permalink Thursday, June 14, 2007 12:47 PM

3:03, Steinbuch will get what he deserves too: a big fat nothing, not to mention professional disgrace. LOSER

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