Overlawyered: Chronicling The High Cost Of Our Legal System

Posts Tagged ‘politics’

Outsourcing, With a Kicker

In the state of Mississippi during the last 5 years, 27 law firms have been retained by Mississippi Attorney General James Hood to purse state lawsuits on contingency. Those firms have collectively donated more than a half-million dollars to Hood in the last two election cycles. Apparently, the legislature is troubled by this combination of for-profit motivation and campaign fundraising, and has passed a bill to pursue competitive bidding before signing contracts of more than $500,000 with private lawyers. It also requires a review board to examine contracts, and it limits contingency fees to $1 million.

Hood isn’t pleased — and the WSJ has his number:

Should state Attorneys General be able to outsource their legal work to for-profit tort lawyers, who then funnel a share of their winnings back to the AGs? That’s become a sleazy practice in many states, and it is finally coming under scrutiny — notably in Mississippi, home of Dickie Scruggs, Attorney General Jim Hood, and other legal pillars…
This kind of quid pro quo is legal in Mississippi and most other states. However, if this kind of sweetheart arrangement existed between a public official and business interests, you can bet Mr. Hood would be screaming about corruption. . . . A decision to prosecute is an awesome power, and it ought to be motivated by evidence and the law, not by the profit motives of private tort lawyers and the campaign needs of an ambitious Attorney General.”

That leaves a mark.

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The Pop Tort: John Edwards and the Valerie Lakey case

For all the complaints about tort reformers supposedly relying upon urban legends to promote their cause, one more frequently sees trial lawyers promoting fictional versions of their victories. As Hillary Clinton and Barack Obama kowtow to John Edwards for his endorsement, it’s worth exploring the case on his record he refers to most frequently. Remarkably, not a single mainstream media organization has questioned Edwards’s self-serving version of the Valerie Lakey case. I correct this problem in today’s American:

Sta-Rite had already been putting warnings on its pool drain covers, and the 1993 case did nothing to change their product design or the warnings conveyed to buyers. The drain cover in the Lakey case was sold in February 1987 with a warning label; soon thereafter Sta-Rite began embossing the warnings on the cover. This safety innovation was used against them at trial, the argument being that they should have acted earlier. But no one could reasonably think that an additional warning to screw in the drain cover would have made an iota of difference. The cover already had holes for screws, county regulations already required the pool drain cover to be screwed down, the pool managers testified that they had done so several times in the year before Lakey’s accident—and Edwards had already recovered millions from the municipality for its failure to keep the cover screwed down.

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Scruggs: government releases wiretap transcripts

Big news day in the Scruggs scandals: a judge has turned down defense motions to throw out the charges and to suppress the evidence, a hearing on those motions has showcased the testimony of government informant Tim Balducci, and the government in responding to the motions has released extensive and often quite damning transcripts of the wiretap conversations among the principals. Folo as usual provides the most in-depth coverage, with posts on the judge’s rulings here and here, on the hearing and Balducci’s testimony here and in numerous preceding posts, and on the wiretap transcripts here and in numerous preceding posts. David Rossmiller is on the judge’s ruling here, and on the hearing and transcripts here. More: Patsy Brumfield, NEMDJ, was at the courthouse.

Picking through the rich contents of the transcripts and Balducci’s testimony is going to keep Scruggsians busy for a good long time. In the meanwhile, some odds and ends:

* Want to review all the major events of the central alleged bribery case, skillfully narrated in chronological sequence? Of course you do. Folo’s NMC has it in six parts beginning here and ending here (follow links to find those in between).

* John Grisham’s “Too Dumb for Dickie” theory encounters some serious strain [Rossmiller and again]

* Mississippi legislature won’t give AG Jim Hood authority to wiretap his enemies suspected white-collar criminals. Gee, wonder why that might be? [WLBT via Lange] Plus: description of Hood as a Pez dispenser coughing out multi-million-dollar cases for his chums [Rossmiller]

* More unpretty details surface on Scruggs’s (and other lawyers) use of informants in Katrina litigation [Rossmiller] and tobacco [Lange]

* More Hood: prosecuting the accused judge-bribers “would be like prosecuting a relative” [Salter, Clarion-Ledger, Rossmiller, Folo]. Give back tainted money? “That’s up to DAGA [Democratic Attorneys General Association]” [Lange]

* Former Louisiana attorney general Richard Ieyoub gets a mention, as does Sen. Trent Lott [Folo, same] Update: feds investigating what Sen. Lott knew [WSJ]

* Small world, Mississippi: member of arbitration panel that awarded Scruggs huge fees was later hired by the tort potentate for legal work [Lange]

* Blogosphere has been a major source for breaking news on the scandal [LegalNewsLine]

* Liberal columnist Bill Minor recalls when a certain Sen. McCain let Dickie Scruggs and Mike Moore run their tobacco lobbying campaign out of his Hill office [NEMDJ via Folo; more at PBS “Frontline” and NY Times]

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Congress’s latest gift to lawyers?

ACSH’s Jeff Stier in today’s New York Post:

CONGRESS is poised to pass a massive giveaway to the ambulance-chasing trial attorneys – under the guise of protecting consumers.

The proposed law [the CPSC Reform Act] would give the 50 state attorneys general new powers to sue the makers of allegedly unsafe products – and even to demand help in their suits from the federal Consumer Product Safety Commission.

Headline-hungry AGs will even be able to sue over products the CPSC has already found to be safe. In other words, national standards will effectively go out the window, as politically ambitious AGs compete to bash business so as to win popularity for future elections.

The legislation – which the House has already passed and the Senate’s likely to pass – would hamper CPSC’s mission by creating multiple unscientific “safety” standards. Each AG’s vision of what the latest scientific studies imply about purported dangers would prevail in a given state, rather than the CPSC’s own (far more expert) findings.

All this would mean a bonanza to trial lawyers – who’d stand to make hundreds of millions from relentless lawsuits within just a few years, since each state would become a new roulette-wheel of potential jury verdicts against manufacturers. …

Further encouraging bogus complaints, the bill would grant unprecedented “whistle-blower” protection to any employee who alleges a fear of product danger – an easy way to secure your job until your case is adjudicated.

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When Clinton and Obama agreed

Before they officially became presidential candidates, the Illinois and New York senators co-authored an article in the May 25, 2006 issue of the New England Journal of Medicine, entitled “Making Patient Safety the Centerpiece of Medical Liability Reform.” (See: http://content.nejm.org/cgi/content/full/354/21/2205)

They sympathized with physicians over escalating insurance costs and condemned the current tort system for creating an “intimidating liability environment.” Still, Clinton and Obama said, it’s more important to focus on how to improve patient safety than “areas of intense disagreement,” such as caps on financial awards to patients.

They introduced legislation, which died in committee in 2006, to provide money and assistance to physicians, hospitals, insurers, and health care systems to start programs for disclosure of medical errors and compensation to patients. The bill would have created an office of patient safety and health care quality to establish a database to track incidents of malpractice and fund research into guidelines to prevent future injuries.

“Physicians would be given certain protections from liability … in order to promote a safe environment for disclosure. … This legislation would provide doctors and patients with an opportunity to find solutions outside the courtroom. In return, [hospitals, insurers, and others] would be required to use savings achieved by reducing legal defense costs to reduce liability insurance premiums and to foster patient-safety initiatives.”

(Mark Crane, MedPageToday, Jan. 7). More: see Ted’s December post at PoL.

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Super Tuesday thought

McCain-Feingold is based on the premise that money used to purchase speech distorts the political process because candidates can use money to fool voters, and therefore the speech purchased by money must be regulated. First Amendment limitations that not even the O’Connor Court was willing to override, however, prevented McCain-Feingold from reaching the spending of personal funds to self-promote. Thus, multi-millionaire Mitt Romney, because he was able to spend millions of dollars of his own money to promote his message would, according to the premises of McCain-Feingold, prevent candidates without those millions from winning elections. If those premises are correct. Which is why John McCain’s decisive victory yesterday is simultaneously a decisive repudiation of the campaign finance law he is most known for.

Read On…

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Update: Cates loses judicial bid

Judy Cates, known to readers of this site for her role in the controversial Publishers Clearing House class action settlement and thereafter for suing a columnist who wrote critically about the pact, yesterday narrowly lost (in the Democratic primary) her bid for a judgeship in southern Illinois. Cates is a former head of the Illinois Trial Lawyers Association. (Ann Knef, “Wexstten defeats Cates”, Madison County Record, Feb. 5; earlier). Bill McClellan, the St. Louis Post-Dispatch columnist sued by Cates and her brother Steven Katz, has written another amusing column on the topic (“For potential Judge Judy, millions have been served”, Feb. 1).

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The battle for Edwards’s funders, cont’d

Clinton and Obama campaigns continue their scramble to sign up trial lawyers who’d been the financial base of the John Edwards candidacy (see Jan. 28). Both sides claim victories, with Obama doing especially well in rounding up California lawyers (Cheryl Miller, “Calif. Trial Lawyers Look to Obama”, The Recorder, Feb. 4; Nathan Carlile, “For Edwards Backers, the Jury Is Out”, Legal Times, Feb. 4).

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