Posts tagged as:

lobbyists

The other day the Chicago Tribune documented a longstanding campaign (see Friday link) to get government bodies to adopt standards requiring flameproofing of furniture upholstery, carpets and other household materials. Turns out key actors in that campaign were companies that make the chemicals used in flameproofing, which thereby guaranteed themselves a giant market for their products, as well as cigarette companies that worried that they would face regulatory and legal pressure over fires caused by careless smoking and decided to pursue a strategy of turning the issue into someone else’s problem.

Unfortunately, according to the Tribune series, the supposedly flameproof furnishings 1) aren’t necessarily very good at reducing fire risk and 2) are doused with chemicals that one might not want rubbing off on one’s family and pets. That’s aside from the regulations’ obvious cost in making furnishings more expensive and narrowing consumer choice by excluding producers unable or unwilling to use the chemical treatments. Whether or not you accept the series’ interpretation in all respects — the authors tend to taken an alarmist line, for example, on the chemicals’ environmental dangers — it’s useful as reminder #83,951 that government regulation often is driven by motives quite different from those advertised, and in particular by business lobbies whose interest is frequently squarely opposed to laissez-faire.

On Sunday, Times columnist Nicholas Kristof, criticized lately in this space for his views on supposed Big Beer responsibility for Indian reservation alcoholism, addressed the flameproofing story in his column. After reciting the controversy — laying a particular emphasis on chemical alarmism, long a specialty of his — Kristof concludes as follows:

This campaign season, you’ll hear fervent denunciations of “burdensome government regulation.” When you do, think of the other side of the story: your home is filled with toxic flame retardants that serve no higher purpose than enriching three companies. The lesson is that we need not only safer couches but also a political system less distorted by toxic money.

Which affords James Taranto of the WSJ’s “Best of the Web” this response:

The guy is so blinded by ideology that he fails to notice he has just given an example of burdensome government regulation.

{ 0 comments }

I’ve got a new opinion piece up at the Daily Caller on some relevant angles of the unfolding Wal-Mart FCPA story, including the feds’ growing crackdown on low-level “facilitating payments” that had previously been considered lawful, the potentially confiscatory effects of something called the Alternative Fines Act, and the question of why FCPA fines and settlements should be going to the U.S. Treasury, “which was surely not the victim of the Mexican bribe-paying, if victims there were.” Earlier here, here and (at Cato) here; and link thanks to Scott Greenfield (a must-read), Point of Law, Chris Fountain, Steve Bainbridge, and Coyote.

Plus: Scoop! Must credit Washington Post! Wal-Mart (like much of the rest of American business) has backed FCPA reform! In above-the-fold coverage with no fewer than three reporters’ bylines — though it does little more than recycle a meme that bounced around left-wing websites all day Tuesday — the Washington Post darkly warns that the giant retailer has been a member of broad business coalitions pressing various FCPA reforms “that, some advocacy groups argue, would eviscerate the Watergate-era anti-corruption statute.”  ”There is no evidence,” the paper is constrained to concede to the disappointment of Some Advocacy Groups, “that suggests Wal-Mart participated in the Chamber’s efforts because of its problems in Mexico.”

The Post notes that the campaign is led by what it bizarrely describes as the U.S. Chamber’s “little-known” Institute for Legal Reform. Yet the Post’s own index indicates that the “little-known” Institute has gotten seven mentions in the paper within the past 12 months, mostly for its advocacy on FCPA reform. Indeed, the Post itself has covered the FCPA debate in some depth over the past year, and its editorialists have ardently defended the law (perhaps “Watergate-era” should serve as some kind of tipoff phrasing.)

It would be one thing if Wal-Mart’s Washington reps had shown some sort of special dislike of FCPA not shared by other American firms that do business in developing countries. But the real story here is how broad and pervasive the discontent with the law is among American businesses with international operations. They consider it unrealistic, incapable of reliable compliance, punitive and constantly changing in its interpretations. Wouldn’t the Post do better to begin listening to them, rather than demonize their efforts to petition Washington for redress?

{ 3 comments }

Secretary Kathleen Sebelius offers no apologies for what might seem a disturbing breach of the principle that taxpayer funds should not go to lobbying [Caroline May, Daily Caller] Earlier on the oughta-be-controversial federal food-policy grant program here, here, etc. More: Abby Schachter on CDC’s Thomas Frieden [NY Post].

{ 3 comments }

March 6 roundup

by Walter Olson on March 6, 2012

  • D.C. Circuit’s Janice Rogers Brown: three-decade-long case over Iran dairy expropriation raises “harshest caricature of the American litigation system” [BLT]
  • Legal blogger Mark Bennett runs for Texas Court of Criminal Appeals as Libertarian [Defending People, Scott Greenfield] And Prof. Bill Childs, often linked in this space, is departing TortsProf (and legal academia) to join a private law practice in Texas;
  • Ambitious damage claims, more modest settlements abound in Louisiana oil-rig cleanup suits [ATLA's Judicial Hellholes, more, more, earlier]
  • Better no family at all: Lawprof Banzhaf jubilant over courts’ denial of adoption to smokers [his press release]
  • “The worst discovery request I’ve ever gotten” [Patrick at Popehat] And yours?
  • Concession to reality? Class action against theater over high cost of movie snacks seen as dud [Detroit Free Press]
  • FCPA is for pikers, K Street shows how real corruption gets done [Bill Frezza, Forbes] Dems threatening tax-bill retribution against clients whose lobbyists who back GOP candidates [Politico]

{ 1 comment }

In a new Cato post, I explain why I wish such an organization existed.

Notwithstanding the observation the other day that Apple didn’t make it by being a political concern, the Economist reports that according to an index produced by Strategas, an investment-research firm, the stocks of American firms that do a lot of lobbying substantially outperform the broader market.

{ 1 comment }

A lawsuit by Washington figure Pat Choate provides a peek. [WSJ Law Blog]

{ 1 comment }

The government is playing more of a role these days in designing your next house. I’ve got some thoughts up at Cato at Liberty on the politics of it all.

{ 18 comments }

New at Point of Law

by Walter Olson on March 23, 2010

Things you’re missing if you’re not following my other site:

{ 1 comment }

It’s wonderfully circular, and not all that different in practice from the “advocacy” and “law reform” funding that has at various times been doled out by our own federal and state governments through legal services, community action and public health programs, tobacco settlement kitties, and so forth. [Iain Murray, CEI "Open Market"]

March 22 roundup

by Walter Olson on March 22, 2009

  • No back-alley bikini lines: New Jersey consumer affairs director rejects proposed ban on Brazilian waxing [Asbury Park Press, JammieWearingFool, Jaira Lima and protest site, Popehat, News12 video] Florida, however, won’t let you get a fish-nibble pedicure [WWSB]
  • Kids doing well in homeschool but divorcing dad disapproves, judge says they must be sent to public [WRAL, Volokh]
  • Al Franken comes out for loser-pays in litigation (well, in this case at least) [MSNBC "First Read"]
  • U.K.: “A man who tried to kill himself has won £90,000 in damages from the hospital which saved his life but hurt his arm in the process” [Telegraph]
  • Life in places without the First Amendment: “Australia’s Vast, Scattershot Censorship Blacklist Revealed” [Slashdot, Volokh, Popehat]; British Telecom passes all internet traffic through “‘Cleanfeed” filters to identify (inter alia) racist content [Glasgow Herald]
  • More on that suit by expelled student against Miss Porter’s School; “Oprichniki” said to be not identical to Keepers of Tradition [NYTimes; our December coverage]
  • “Why We Need Cop Cameras” [Steve Chapman, Chicago Tribune] Shopkeepers terrorized in Philadelphia: “The thugs had badges.” [Ken at Popehat]
  • Counting former lobbyists in Obama Administration? Don’t forget Kathleen Sebelius [Jeff Emanuel, RedState]
  • Wisconsin: “$50,000 claim filed over girl’s time-out in school” [Milwaukee Journal Sentinel]

{ 2 comments }

March 1 roundup

by Ted Frank on March 1, 2008

  • Oregon Supreme Court plays chicken with SCOTUS over $79.5 million punitive damages award in Williams v. Philip Morris case. [Sebok @ Findlaw; Krauss @ IBD; POL Feb. 1]
  • Speaking of punitive damages, I did a podcast on Exxon Shipping v. Baker. I can’t bear to listen to it, so let me know how I did. [Frank @ Fed Soc]
  • Arkansas case alleged legal sale of pseudoephedrine was “nuisance” because meth-makers would buy it; case dismissed. [Beck/Herrmann]. This is why I’ve stockpiled Sudafed.
  • Lawyers advertise for refinery explosion victims before fire goes out. [Hou Chron/TLR]
  • Connecticut Supreme Court: cat-attack victim can sue without showing past history of violence by animal. [On Point] Looking forward to comments from all the anti-reformers who claim to oppose reform because they’re against the abrogation of the common law.
  • Op-ed on the Great White fire deep pockets phenomenon. [SE Texas Record; earlier: Feb. 2]
  • “FISA lawsuits come from Twilight Zone.” [Hillyer @ Examiner]
  • Legislative action on various medical malpractice tweaking in Colorado, Hawaii, and Wyoming. [TortsProf]
  • Request for unemployment benefits: why fire me just because I asked staffers for a prostitute? [Des Moines Register]
  • “So much for seduction and romance; bring in the MBAs and lawyers.” [Mac Donald @ City Journal; contra Belle Lettre; contra contra Dank]
  • Where is the Canadian Brandeis standing up for free speech? [Kay @ National Post]
  • In defense of lobbying. [Krauthammer @ WaPo]

{ 1 comment }

The Alliance for a New America is an “independent” campaign organization running television ads in Iowa on behalf of John Edwards—whose ability to spend money himself in Iowa is restricted because he is taking taxpayer money as campaign funds (all while bashing other candidates for taking money from “lobbyists”, even as he takes millions from trial lawyers and his finance chair is the former head of lobbying group ATLA).

Via Kaus, though Paul Krugman calls the Alliance for a New America a “labor 527″, it turns out that a third of its money comes from Rachel Mellon, of the Mellon family fortune. (Though one wonders why Krugman is willing to defend the 527 as a labor 527. It’s not like SEIU, which also heavily funds the Alliance for a New America, doesn’t lobby the government for special-interest legislation. If, as Edwards says, lobbyists are bad, they don’t suddenly become good because you agree with them. And if lobbyists you do agree with are good, then why isn’t the issue the underlying policy proposal rather than the fact of the lobbying, as Edwards tries to demagogue?)

Here’s the thing: Mellon is 96 years old. There are certainly competent 96-year-olds out there, and it’s possible that Mellon really likes John Edwards. But what we do know is that a New York trust attorney who holds the power of attorney for Mellon and the Mellon-related LLC that is fronting the money is a big fund-raiser for Edwards. Does Mellon know that she’s funnelling hundreds of thousands of dollars to John Edwards through her attorney through multiple 527s? Or is there something else going on? One expects Obama to complain:

According to the available records, which go back to 1980, she has never donated to a political candidate until a contribution was made in her name to John Edwards this year. Mellon’s involvement in the decision to donate to the Edwards campaign is unknown. The Washington Post reported yesterday that Alexander Forger, who has power for attorney for Mrs. Mellon, is a major supporter of John Edwards’ candidacy. Crain’s Business Journal reported in February that Forger and “a group of prominent New York lawyers” hosted a fund-raiser for Edwards at Essex House — the Central Park South address where his office is located. Forger has also personally donated $4,600 to Edwards’ campaign, according to FEC records. This is not the first time Forger has used Oak Springs Farms to support Edwards; in 2006, he made a $250,000 contribution to Edwards’ One America 527 group.

And even Daily Kos is asking questions.

(If there is something fishy, it wouldn’t be the first time lawyers have engaged in campaign finance shenanigans for John Edwards. See the case of Tab Turner. There’s the pending Fieger indictment, though Edwards and Fieger profess innocence. And Edwards still hasn’t returned all of the Milberg Weiss money, despite several guilty pleas and a pending indictment.)

Speaking of Edwards and demagoguery: he’s dropped references to the Mellons from his stump talks.

{ 4 comments }

Rielle Hunter and John Edwards

by Ted Frank on September 27, 2007

Who is the “formerly hard-partying girl who claims that she found enlightenment” who met John Edwards in a bar and was paid six digits by the campaign to make videos of him that “lingers over the former senator’s behind as he tucks a starched white shirt into his pants,” and why is the campaign suddenly hiding the webvideos she made of Edwards on questionable legal grounds? Mickey Kaus is curious after reading this Sam Stein post. Separately, Garance Franke-Ruta notes the irony of Edwards stumping the SEIU for votes and donations on the leftist union’s “Lobby Day.” For other Edwards campaign shenanigans on Overlawyered, see Sep. 19.

Update, July 22: new revelations about Edwards and Hunter?

Update, August 13: Where did Andrew Young get his money?

(For continuing Rielle Hunter scandal coverage, see our Rielle Hunter tag.)

{ 4 comments }

At YearlyKos, John Edwards and Barack Obama sought to distinguish themselves from Hillary Clinton by saying they didn’t take money from registered lobbyists, and Clinton was booed for defending herself. (Also: Franke-Ruta.)

I found this curious: after all, Obama and Edwards showed up at the national convention of the lobbying group for the trial lawyers, the former Association of Trial Lawyers of America (who now call themselves the American Association of Justice). There, they gave speeches (as did Clinton, Biden, and Richardson). A look at the largest donors for Obama and especially Edwards shows a disproportionate number of active members of that lobbying group. Indeed, John Edwards’s finance chairman is Fred Baron, the former president of ATLA. If Obama and Edwards want voters to believe that Clinton is influenced by lobbyist money, what should we think about these two candidates’ debts to trial lawyers? Are we to believe that the critical difference is the lobbyist registration papers, at which point money becomes tainted and dirty? Are any reporters going to ask that hard question, or will they let the two candidates demagogue from the high ground as they take millions from the most pernicious special interest group in America?

{ 2 comments }