You need to hire an attorney ASAP. If things are as the other kids are stating, then you have a civil case to pursue along with needing to defend your son from the charges. There is much investigation that needs to be done and money will certainly be a concern. Maybe you will be able to hire the attorney with a contingency fee on the civil case and to take the legal fees from the suit money. Therefore, it may be worth is for you.
Yes, this is a very tough and sensitive issue. You are probably going to have to go to the next biggest town over, (Fairfield, Palestine, or attorneys who practice in Centerville or near there) and attempt to find a lawyer who is not connected to anyone in your town. Call around to different places and see if there is a lawyer that can help with this situation. Another possibility is calling the nearest NAACP office in your state and see if they can help or recommend someone to you. Follow the following link for a list of branches in Texas: http://www.texasnaacp.org/txnaacp/docs/branches.doc
The situation with a small town like this is that you need someone outside of the local system who will not be influenced by the politics of the town.
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Prepaid legal doesn't really do much, its almost like a referral service. So, definitely call around. As I stated in my first answer, yes, a civil suit is something worth exploring. I believe you definitely have a shot at this, but you need an attorney for sure.
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