A federal judge in Boston ruled yesterday that the FBI was responsible for the 1982 execution-style deaths of two men who were allegedly slain by members of the Winter Hill gang and urged prosecutors to settle for damages with the families.
In unusual comments from the bench, US District Judge Reginald C. Lindsay pointed out that the government itself had argued in several high-profile criminal prosecutions that Edward Brian Halloran and Michael Donahue were slain because a rogue FBI agent tipped off fugitive mobster James "Whitey" Bulger that Halloran was an informant.
As a result, Lindsay said, a trial was not necessary in the families' wrongful death civil suits to determine whether the government was liable. The judge said he will hold a trial next year to decide what damages the government owes the families of Halloran and Donahue
In a stern rebuke to the government, Lindsay also urged the prosecutor, Andrew Kaplan, to relay a message to US Department of Justice officials: Avoid a trial by settling the Halloran and Donahue lawsuits and at least four others filed by families of other people allegedly killed because of the FBI's mishandling of Bulger and other criminal informants.
"Mr. Kaplan, please take back to Washington my suggestion that now is the time to settle this case and, indeed, all of them," Lindsay said. He added that he has made similar entreaties to the Justice Department in the past that "fell on deaf ears."
Kaplan declined comment after leaving the courtroom, referring inquires to a Justice Department spokesman, who did not return calls for comment.
Yesterday's ruling came 14 months after Lindsay found that the FBI was liable in the 1984 killing of Quincy fisherman John McIntyre. In that case, the judge ordered the government to pay more than $3 million to McIntyre's mother and brother.
In the McIntyre case, the first ruling on a lawsuit brought against the government by victims of Bulger and mob associates, Lindsay ruled only after presiding over an 18-day bench trial. In a 110-page decision, Lindsay found that the FBI had failed to properly supervise former agent John J. Connolly Jr. and failed to investigate numerous allegations that Bulger and informant Stephen "The Rifleman" Flemmi were involved in drug trafficking, murder, and other crimes.
Lindsay's ruling heartened some lawyers for families of alleged victims of Bulger who have lawsuits pending against the government.
"What you saw happen today is that Judge Lindsay told the government he will not conduct another trial unless they can demonstrate that the evidence will be any different than in the McIntyre case," said Robert George, a lawyer for Donahue's family. "For a judge to make a decision that basically preempts a trial and puts not only the government's feet to the fire but throws them in the flames is an extraordinary legal development."
Edward Berkin, who represents the widow of Louis R. Litif in a lawsuit, expressed hope "that the government accepts the recommendation of Judge Lindsay that it should seriously consider settling the remaining cases beyond McIntyre."
But he added that he had seen little sign that the government would act on the judge's recommendation.
According to the suit filed by Litif's widow, the South Boston bookmaker was killed in 1980 because he had offered the FBI incriminating evidence about Bulger and Flemmi.
On April 12, 1980, prosecutors say, Bulger shot Litif in the head and put the body in the trunk of Litif's car.
Yesterday, Lindsay scheduled a hearing for Feb. 7 to discuss the schedule for a trial to determine damages in the lawsuits by the families of Halloran and Donahue.
William Christie, a lawyer for Halloran and the McIntyre family, applauded the judge's ruling, which caught several seasoned lawyers by surprise.
He said the evidence was overwhelming that Connolly had leaked to Bulger and Flemmi that Halloran was cooperating with the FBI about their role in the murder of Roger Wheeler.
As a result of that disclosure, he said Halloran was shot to death on Northern Avenue along with Donahue, who was driving Halloran.
Lindsay said that in the federal prosecution of Connolly and other associates of Bulger, the government had admitted that Halloran and Donahue died as a direct result of information Connolly had leaked to Bulger and Flemmi.
Lindsay told federal prosecutors they had to reconcile their position in the criminal cases with their stance in the civil suits.
In the civil suits, the government argued that it was not liable for the deaths because Connolly was not acting within the scope of his authority as an FBI agent when he leaked the information.
Connolly was sentenced to 10 years in prison following his conviction on charges of racketeering, obstruction of justice, and lying to an FBI agent about his dealings with Bulger and Flemmi.
He is in custody in Miami, where he is scheduled to stand trial in March on state charges that he helped Bulger and Flemmi to orchestrate the gangland slaying of a Boston businessman with ties to Bulger's gang.
Jonathan Saltzman can be reached at jsaltzman@globe.com.
