A state district court judge explains in a recent order that she dismissed Dallas County District Attorney Craig Watkins' indictments against a wealthy Dallas heir after concluding that the prosecutor levied the charges "to assist" plaintiff lawyer Lisa Blue.

But Blue, of Dallas' Baron and Blue who is involved in a multi-million dollar attorney fee dispute with the heir, says she's done nothing wrong.

Lena Levario, judge of the 204th District Court, dismissed several mortgage fraud indictments against Albert G. Hill III on March 7th, partly because Watkins refused to testify about why he prosecuted Hill. Hill moved to quash the indictments, alleging that Blue, a prominent donor to Democrats, exerted influence on Watkins to bring the charges. [See " State Judge Dismisses Fraud Indictments Against Albert G. Hill III, Holds Dallas DA Craig Watkins in Contempt," Texas Lawyer, March 8, 2013, page 1.]

Blue had represented Hill in a dispute over a family trust that was litigated in federal court and Hill later refused to pay Blue's legal fees [See " BAM! Counsel Win $21 Million in Fees From Clients Who Wouldn't Pay," Texas Lawyer, Jan. 30, 2013, page 1.]

Levario also found Watkins in contempt for his refusal to testify, which is the subject of ongoing litigation.

In her August 2 findings of fact and conclusions of law on Hill's motion to quash, Levario found among other things that:

· Leading up to the indictments, Watkins was in close and frequent contact with Blue, received contributions and other favors from her shortly before the indictments were returned and discussed the indictments with her on at least two occasions before they were obtained.

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