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:

  1. Paragraphs dealing with the question of whether the fee awards are taking money away from treating sick and dying smokers.

  2. 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.)

  3. 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.)

  4. 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.


  1. 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.
    1. Fees from sick smokers:
    2. Political influence:
    3. Contingent fees: Par. 78,79,80,81
    4. Bob Montgomery:

  2. 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.
    1. Fees from sick smokers: Par. 2, 34
    2. Political influence: Par. 40, 41
    3. Contingent fees: Par. 1-85 (excellent over all fee discussion)
    4. Bob Montgomery:

  3. 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.
    1. Fees from sick smokers:
    2. Political influence:
    3. Contingent fees:
    4. Bob Montgomery:

  4. 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.
    1. Fees from sick smokers:
    2. Political influence:
    3. Contingent fees: Par. 1-47 (excellent fee discussion)
    4. Bob Montgomery:

  5. 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.
    1. Fees from sick smokers:
    2. Political influence:
    3. Contingent fees: Par. 21,22,23,24,25
    4. Bob Montgomery: Par. 7,8,9,10 (poster boy of the greedy plaintiff's attorney),14,15,16,17,18,19,20,26,27

  6. 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.
    1. Fees from sick smokers:
    2. Political influence:
    3. Contingent fees:
    4. Bob Montgomery: Par. 33,34

  7. 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.
    1. Fees from sick smokers: Par. 2
    2. Political influence:
    3. Contingent fees:
    4. Bob Montgomery: Par. 1,2,3,4,5,6 (Montgomery spent a half million of his own money on the case),7,10

  8. 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.
    1. Fees from sick smokers: Par. 17,18
    2. Political influence: Par. 15,16
    3. Contingent fees:
    4. Bob Montgomery:

  9. 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.
    1. Fees from sick smokers:
    2. Political influence:
    3. Contingent fees: Par. 5,6
    4. Bob Montgomery: Par. 1,2,10,13,14,15,16,17,18

  10. 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.
    1. Fees from sick smokers: Par. 1,2
    2. Political influence: Par. 16
    3. Contingent fees: Par. 1-53 (excellent analysis of contingent fees)
    4. Bob Montgomery:

  11. 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.
    1. Fees from sick smokers:
    2. Political influence:
    3. Contingent fees:
    4. Bob Montgomery:

  12. 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.
    1. Fees from sick smokers:
    2. Political influence: Par. 9,10
    3. Contingent fees: Par. 1-13 (excellent discussion of fee issue)
    4. Bob Montgomery:

  13. 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.
    1. Fees from sick smokers: Par. 1
    2. Political influence:
    3. Contingent fees: Par. 1,2,3
    4. Bob Montgomery:

  14. 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.
    1. Fees from sick smokers: Par. 9,12
    2. Political influence: Par. 10,11,12
    3. Contingent fees: Par. 12
    4. Bob Montgomery:

  15. 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.
    1. Fees from sick smokers: Par. 22,23
    2. Political influence:
    3. Contingent fees:
    4. Bob Montgomery: Entire paper is devoted to Montgomery.

  16. 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.
    1. Fees from sick smokers:
    2. Political influence: Par. 1,2,3
    3. Contingent fees: Par. 1
    4. Bob Montgomery:

  17. 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.
    1. Fees from sick smokers: Par. 12,
    2. Political influence:
    3. Contingent fees:
    4. Bob Montgomery: Par. 9

  18. Florida Refuses to Return Tobacco Settlement Money
    Associated Press. Squabble between a bank, the State and lawyers over escrow money. One page.
    1. Fees from sick smokers:
    2. Political influence:
    3. Contingent fees:
    4. Bob Montgomery:

  19. Center for Policy Research: Big Law is Overpaid
    Excellent article articulating the next industries to be hit by Lawyers.
    1. Fees from sick smokers: Par. 7
    2. Political influence: Par. 8
    3. Contingent fees:
    4. Bob Montgomery:

  20. 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 )
    1. Fees from sick smokers:
    2. Political influence: Par. 1,2,3,4,5,6,7,8
    3. Contingent fees:
    4. Bob Montgomery:

  21. Tobacco Settlement Summary
    Good summary of the terms of the national tobacco settlement. Six pages.
    1. Fees from sick smokers:
    2. Political influence:
    3. Contingent fees: Par. 17
    4. Bob Montgomery:

  22. 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.
    1. Fees from sick smokers:
    2. Political influence:
    3. Contingent fees:
    4. Bob Montgomery:

  23. 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.
    1. Fees from sick smokers: Par. 8
    2. Political influence:
    3. Contingent fees: Par. 1-15
    4. Bob Montgomery:

  24. Tobacco Arbitration Panel Awards $8.2 Billion
    LJX Files. Discusses the awards. Two pages.
    1. Fees from sick smokers:
    2. Political influence:
    3. Contingent fees: Par. 1-22
    4. Bob Montgomery:

  25. Tobacco Suit Attorneys Land $3.4 Billion in Fees
    Orlando Sun Sentinel. Discusses arbitration awards for Florida, Texas and Mississippi. Three pages.
    1. Fees from sick smokers:
    2. Political influence:
    3. Contingent fees: Par. 33
    4. Bob Montgomery: Par. 5 (Montgomery and Schlesinger get $950 million each),14,22,23,34

  26. Tobacco Road not Gold for All
    National Law Journal. Discusses lawyers who were involved with the litigation but received no fees. Two pages.
    1. Fees from sick smokers:
    2. Political influence:
    3. Contingent fees:
    4. Bob Montgomery:

  27. 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.
    1. Fees from sick smokers: Par. 4,5,12
    2. Political influence: Par. 11,12
    3. Contingent fees: Par. 1-12 (excellent fee discussion)
    4. Bob Montgomery:

  28. 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.
    1. Fees from sick smokers: Par. 2
    2. Political influence:
    3. Contingent fees: Par. 1-23 (another excellent fee discussion)
    4. Bob Montgomery:


This is a page in the Web site entitled Legal Reform Through Transforming the Discipline of Law into a Science.