LAWYERS MAKE BILLIONS
AT EXPENSE OF SICK AND DYING SMOKERS
This section provides an in depth examination of the tobacco legal fee
scandal by examining 28 articles from the media and government documents.
Although oriented toward Florida, it covers all the states as well as
the federal government over the period this continuing scandal has played
out.
The tobacco fee arbitration awards (including $950 million each, for two
Florida lawyers) undoubtedly constitute the largest fees ever paid to any
professional person, and by a wide margin. Indeed, the previous record for
any single lawyer was $400 million, which was also probably a record for
any professional person, as well. (See Greed
Breeds Bad Case of Eye-Popping Legal Fees , paragraphs 27-36). The
trend is clearly out of hand.
As stated by constitutional expert, Robert Levy, about the Florida tobacco
fee arbitration award, "Incredibly, the arbitrators ignored [Judge]
Cohen's warning, disregarded the law, abandoned common sense and upped the
lawyers' award by $600 million for a total windfall of $3.4 billion".
Indeed, these lawyers were awarded even more than the absurd sum they
demanded.
As you read these articles, you will note there is much to suggest that
these lawyers were being paid off by the tobacco companies for a sweet
deal. (That is not to suggest however that the legal profession doesn't
consider itself vastly more valuable than any other profession). As well,
this vast largess only provides them with the means to engage in vastly
more sociologically destructive activities such as buying politicians and
pursuing unfounded litigation. And unfortunately this affair sets the
example for generations of lawyers to come.
And, as these articles so well demonstrate, our legal system inherently
precipitates money and power hungry manipulative individuals such as these
to the top; while better motivated more socially responsible lawyers get
trampled upon in the process. This in turn is due to the legal
profession's "anything goes" modus operandi and morality, applied through
an intentionally complex (and thus readily manipulated) legal system.
Indeed in the final analysis, it is medical science, not the legal
profession at all, that did all the real work in advancing fundamental
knowledge about the health risks of smoking, and thus winning the tobacco
litigation. And it is medical science that must treat the victims, not the
legal profession.
Moreover, as soon as these risks were established, a science based legal
profession would have picked up the ball and carried through in a much
more seamless professional manner, long before this legal system even
thought about addressing the subject, and at reasonable professional fees,
indeed, far less than one percent of what these lawyers have demanded and
received.
Moreover, this money is being diverted away from treating the millions of
sick and dying people that suffer from tobacco related illnesses. In the
case of Florida alone, this $3.4 billion would have provided a thousand
dollars of treatment for each of 3.4 million Floridians, a state with a
population of 15 million people. The simple fact is many thousands of
Floridians as well as people across the country will suffer or die so a
few lawyers can live in great luxury.
Further information on other abuses of the legal system as well as the
nature of law as a science will be found at the link to this site's home
page at the bottom of this Web page. Of course the articles and documents
reviewed here speak for the problems of the legal profession whether or
not one subscribes to the idea advanced by this Web site, that the
discipline of law should convert to a science.
The articles and documents below are arranged in chronological order. They
are the most informative of those available. Although choosing the
articles is necessarily subjective to some extent, I've made no attempt to
bias the choice in any particular way. You will find few of them attempt
to justify the fees; a fact which is representative of all the articles
out there.
The paragraphs of the articles are numbered for easy reference. Under each
article entry is a brief description of the article and below that are
four sub-entires:
- Paragraphs dealing with the question of whether the fee awards
are taking money away from treating sick and dying smokers.
- Paragraphs discussing how political influence and cronyism was
employed to obtain these lucrative fee deals. (Much space in
the articles is devoted to this, so I have only listed some of the more
compelling paragraphs on this particular point.)
- Paragraphs discussing the nature and propriety of the contingent fee
contracts. (Here again, much space is devoted to fees so I have chosen
only some of the more compelling arguments about the subject.)
- Paragraphs about the lead attorney for the Florida tobacco litigation,
Bob Montgomery.
If you'd like to see an overview of the entire subject before getting into
the details, you will find Tobacco Litigation
Contracts should be Illegal worth a look.
I hope you find this collection of articles interesting and useful in the
cause of legal reform. --Bob Allston, 3/4/99.
- Florida Reaches Settlement with Tobacco
Companies
This is the August 25, 1997, Florida court settlement
that precipitated the attorney fee issue for Florida. Unless you are
specifically interested in legal details, you will find most of it rather
tedious. However, the first paragraph of the page is worth having a look
at, and attorney fees are addressed in paragraph 78 on. Six pages.
- Fees from sick smokers:
- Political influence:
- Contingent fees: Par. 78,79,80,81
- Bob Montgomery:
- Lawyers could get Billions in Tobacco
Deal
Excellent Seattle Times overview of the national fee issue as
it stood at the time, estimating that attorney fees for the projected
national settlement would be $14.7 billion. Paragraphs 40, 41, quote a law
professor giving the political realities of the fee situation. Seven
pages.
- Fees from sick smokers: Par. 2, 34
- Political influence: Par. 40, 41
- Contingent fees: Par. 1-85 (excellent over all fee discussion)
- Bob Montgomery:
- Tobacco Deals from Wonderland
Excellent Orlando Business Journal article on the many absurdities of the
Florida tobacco litigation. Poses question of why not raise taxes on
cigarettes instead of suing the tobacco companies. One page.
- Fees from sick smokers:
- Political influence:
- Contingent fees:
- Bob Montgomery:
- Order Quashing Charging Liens
This is
the often quoted order of Judge Cohen. In it he sets forth the legal and
ethical foundations for his statements that $2.8 billion in fees "shocks
the conscience of the court", and "it is per se unreasonable" (paragraph
34). And calculating that the fees amounted to $7,716/ hr. he finds them
"patently ridiculous" (paragraph 38). Five pages.
- Fees from sick smokers:
- Political influence:
- Contingent fees: Par. 1-47 (excellent fee discussion)
- Bob Montgomery:
- A Fee Fight Worth $2.8 Billion
Good
Washington Post article. Discusses the now famous dinner in the ballroom
of attorney Bob Montgomery's palacial Palm Beach mansion, where Florida
governor Childs announced the settlement to the State's legal team
(paragraph 14). Three pages.
- Fees from sick smokers:
- Political influence:
- Contingent fees: Par. 21,22,23,24,25
- Bob Montgomery: Par. 7,8,9,10 (poster boy of the greedy plaintiff's
attorney),14,15,16,17,18,19,20,26,27
- Tobacco Charges Debated
Jacksonville
Times Union story on the legal fee squabble. One lawyer is accused of
getting $20 million for no work at all and it is claimed there is a nation
wide cartel attempting to control attorney fees (paragraph 5). Three
pages.
- Fees from sick smokers:
- Political influence:
- Contingent fees:
- Bob Montgomery: Par. 33,34
- They Struck Gold. Lawyers of the Sierra
Madre.
Newsweek. More on the fee squabble. Another discussion of
the dinner at lawyer Montgomery's Palm Beach mansion (paragraph 1). Three
pages.
- Fees from sick smokers: Par. 2
- Political influence:
- Contingent fees:
- Bob Montgomery: Par. 1,2,3,4,5,6 (Montgomery spent a half million of
his own money on the case),7,10
- Greed Breeds Bad Case of Eye-Popping Legal
Fees
USA Today. More on the fee squabble. Highlights of the
national settlement (paragraph 20-26). Until this case, the highest
fees for a single case were one billion and for a single lawyer were
$400 million, etc. (paragraphs 27-36). Three pages.
- Fees from sick smokers: Par. 17,18
- Political influence: Par. 15,16
- Contingent fees:
- Bob Montgomery:
- Trial Association says Fees Excessive
Richmond Times Dispatch. The 60,000 member Association of Trial Lawyers of
America states the fees demanded by the Florida lawyers is excessive and
unreasonable (paragraph 5). Florida lawyer Bob Montgomery states "I really
don't give a damn what the association says" (Paragraph 2). Two pages.
- Fees from sick smokers:
- Political influence:
- Contingent fees: Par. 5,6
- Bob Montgomery: Par. 1,2,10,13,14,15,16,17,18
- Hearing on Proposed Legislation to Limit
Lawyers Fees
From House Web site. Testimony of Representative
Christopher Cox. This is an excellent in depth overview of the legal,
ethical and historical aspects of the fee issue. Well worth reading. Nine
pages.
- Fees from sick smokers: Par. 1,2
- Political influence: Par. 16
- Contingent fees: Par. 1-53 (excellent analysis of contingent fees)
- Bob Montgomery:
- Lawyers get Rich from Tobacco Liability
Suits
San Diego Union-Tribune. Interesting account of the lawyer
who's ten year campaign obtained the court ruling that set the stage for
the success of the tobacco litigation, but gained nothing from it. One
page.
- Fees from sick smokers:
- Political influence:
- Contingent fees:
- Bob Montgomery:
- Joseph Califano: Sellout to Big
Tobacco
Excellent and revealing Washington Post article by former
Secretary of Health, Education and Welfare, Joseph Califano. Washington
insider discusses why Big Tobacco doesn't mind spending more on
plaintiff's lawyers than on their own lobbyists (Paragraph 9). Two
pages.
- Fees from sick smokers:
- Political influence: Par. 9,10
- Contingent fees: Par. 1-13 (excellent discussion of fee issue)
- Bob Montgomery:
- Size of Lawyer's Fees in Tobacco
Settlements
From House Web site. As much as $55 billion could be
taken away from public health programs for attorney fees (paragraph 1).
One page.
- Fees from sick smokers: Par. 1
- Political influence:
- Contingent fees: Par. 1,2,3
- Bob Montgomery:
- Cato Institute: Huge Law Fees from Tobacco
Lawsuits?
"Lawyers, like everyone else, deserve to be rewarded for
their labors. But they are not entitled to the multibillion -dollar
windfall contained in the tobacco deal. Congress should kill the entire
settlement" (paragraph 16). Two pages.
- Fees from sick smokers: Par. 9,12
- Political influence: Par. 10,11,12
- Contingent fees: Par. 12
- Bob Montgomery:
- Interview with Lawyer Bob Montgomery
Miami Daily Business Review. Long interview with lead Florida attorney Bob
Montgomery. Ego, money and power. Try paragraphs 28 and 29. Five
pages.
- Fees from sick smokers: Par. 22,23
- Political influence:
- Contingent fees:
- Bob Montgomery: Entire paper is devoted to Montgomery.
- Steve Forbes on Tobacco Litigation
Fees
Forbes. Steve Forbes weighs in on the issue-- "pure political
pork on an obscene scale" (Paragraph 1). One page.
- Fees from sick smokers:
- Political influence: Par. 1,2,3
- Contingent fees: Par. 1
- Bob Montgomery:
- Tobacco Lawyers' Fees are Really
Smokin'
Bergen Record Corp. "Florida has joined Texas in sending
the message that, at least for a handful of lawyers, bigger is better, no
matter the eventual cost to consumers, taxpayers and all of society"
(Paragraph 15). Two pages.
- Fees from sick smokers: Par. 12,
- Political influence:
- Contingent fees:
- Bob Montgomery: Par. 9
- Florida Refuses to Return Tobacco Settlement
Money
Associated Press. Squabble between a bank, the State and
lawyers over escrow money. One page.
- Fees from sick smokers:
- Political influence:
- Contingent fees:
- Bob Montgomery:
- Center for Policy Research: Big Law is
Overpaid
Excellent article articulating the next industries to be hit by Lawyers.
- Fees from sick smokers: Par. 7
- Political influence: Par. 8
- Contingent fees:
- Bob Montgomery:
- Florida Citizens for a Sound Economy:
Lawyers' Tobacco Fees
Press release by Slade O'Brien, director of
this 25,000 member group. "It's a little too convenient that this group of
liberal trial lawyers are receiving close to three billion dollars-- less
than 50 days before the general election" (paragraph 1). "I'm confident
that if Florida's voters and consumers know the truth they will not be
fooled by the trial lawyers attempts to buy Florida's political system"
(Paragraph 8). Two pages. (For another page in this site on CSE's problems
with corrupt trial lawyers, see Scam by the
Academy of Florida Trial Lawyers )
- Fees from sick smokers:
- Political influence: Par. 1,2,3,4,5,6,7,8
- Contingent fees:
- Bob Montgomery:
- Tobacco Settlement Summary
Good
summary of the terms of the national tobacco settlement. Six pages.
- Fees from sick smokers:
- Political influence:
- Contingent fees: Par. 17
- Bob Montgomery:
- Total Payments to each State from the
National Tobacco Settlement
The total payment for each state is
listed for the national tobacco settlement. Two pages.
- Fees from sick smokers:
- Political influence:
- Contingent fees:
- Bob Montgomery:
- Tobacco Fee Arbitration Panel Goes to
Work
LJX Files Web site. Discusses the issues presented to the
arbitrators. Has links to the biographies of each of the arbitrators as
well as the 150 page national settlement document. Two pages.
- Fees from sick smokers: Par. 8
- Political influence:
- Contingent fees: Par. 1-15
- Bob Montgomery:
- Tobacco Arbitration Panel Awards $8.2
Billion
LJX Files. Discusses the awards. Two pages.
- Fees from sick smokers:
- Political influence:
- Contingent fees: Par. 1-22
- Bob Montgomery:
- Tobacco Suit Attorneys Land $3.4 Billion in
Fees
Orlando Sun Sentinel. Discusses arbitration awards for
Florida, Texas and Mississippi. Three pages.
- Fees from sick smokers:
- Political influence:
- Contingent fees: Par. 33
- Bob Montgomery: Par. 5 (Montgomery and Schlesinger get $950
million each),14,22,23,34
- Tobacco Road not Gold for All
National Law Journal. Discusses lawyers who were involved with the
litigation but received no fees. Two pages.
- Fees from sick smokers:
- Political influence:
- Contingent fees:
- Bob Montgomery:
- Tobacco Fee Fallout
American Lawyer
Media. "The creation of a new class of trial lawyer portends a legal arms
race-- among other calamities". Excellent in depth analysis of the
sociological and economic effects of the fee awards by Dean Charles W.
Wolfram of the Cornell Law School. Three pages.
- Fees from sick smokers: Par. 4,5,12
- Political influence: Par. 11,12
- Contingent fees: Par. 1-12 (excellent fee discussion)
- Bob Montgomery:
- Tobacco Litigation Contracts should be
Illegal
American Lawyer News Service. Excellent article arguing
that contingent fee contracts between state and private attorneys should
be illegal. Three pages.
- Fees from sick smokers: Par. 2
- Political influence:
- Contingent fees: Par. 1-23 (another excellent fee discussion)
- Bob Montgomery:
This is a page in the Web site entitled Legal Reform
Through Transforming the Discipline of Law into a Science.