
Law And The Judiciary | |
Billions For Anti-Tobacco Lawyers |
Critics of the recent tobacco settlement are raising objections on a number of grounds. Exorbitant lawyers' fee are one point of contention. The deal granted cigarette makers immunity from future class-action suits and caps damages in individual suits. In exchange the tobacco companies would pay $368.5 billion to the federal government over a period of 25 years. Some $193 billion of the total would be divided up among the 41 states which participated in the suits, as reimbursement for smoking-related Medicaid expenses. But it's the fees that are grabbing headlines: the 300 or so lawyers from 89 law firms representing the states stand to reap fees upward of $14.5 billion.
In Congress, bills have been introduced to limit the lawyers' fees to $125 or $150 per hour. Interestingly, the attorneys got the tobacco companies to agree not to oppose any of the attorneys' fees. Critics are also concerned that states used tort lawyers as de facto deputy attorneys general. Others, however, including a spokesman for Ralph Nader's group Concerned Citizen, argue limiting attorneys' fees could violate the Fifth Amendment's prohibition on taking private property without "just compensation." Source: Matthew Scully, "Will Lawyers' Greed Sink the Tobacco Settlement?" Wall Street Journal, February 10, 1998. |
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