Risk Management

Though California has so far escaped from the potentially corruptive influence of contingency-fee agreements between private lawyers and public prosecutors, other states have not been so fortunate.

The Wall Street Journal has published several editorials blasting the unseemly state practice of hiring outside lawyers to sue private companies on a contingency fee basis --and how the trial bar returns the favor with campaign donations to state office holders. The Journal revealed that Oklahoma's attorney general had entered into agreements with private firms to sue tobacco companies and later big-name poultry companies.

Oklahoma Governor Brad Henry turned down a bill that would have shed light on these deals. According to the Journal, Oklahoma's Private Attorney Retention Sunshine Act would have required state agents to use open, competitive bidding for any legal work of more than $5,000. On contracts worth $500,000 or more the governor would have to sign off. It would also have required contingency lawyers to submit a list of hours and expenses, payment for which could not exceed a mere $1,000 an hour.  Read More »