[Congressional Record Volume 144, Number 7 (Thursday, February 5, 1998)]
[Senate]
[Pages S443-S444]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                ATTORNEY FEES AND THE TOBACCO SETTLEMENT

  Mr. FAIRCLOTH. Mr. President, I rise to say a few words about 
attorney fees and the proposed Senate bill, S. 1570. The Public Health 
Funds Preservation Act, which is better known as the Tobacco Settlement 
Act, limits attorney's fees, and only if there is a tobacco settlement. 
It limits their fees, the bill that I have introduced, to $125 per hour 
plus court-approved expenses. This is not something that we came upon. 
This is the same rate that Congress set for lawyer fees in suits filed 
against the Federal Government. So this is an accepted and nationally 
known attorney fee, $125 an hour.
  For trial lawyers, this debate is not about public health, it is 
about private greed. It is about creating instant billionaires. It is 
about using the public funds to create instant billionaire trial 
lawyers. It's a huge pot of money, billions of dollars, and it is 
wanted to fund frivolous lawsuits far into the 21st century. As long as 
you pay lawyers, you will have lawsuits. At the rate these are being 
paid, we will have lawsuits into infinity.
  Let me mention a few cases that reveal the real motive of the trial 
lawyers. This is a typical example of how this group works. The trial 
lawyers negotiated a $349 million settlement with the tobacco companies 
in the so-called ``flight attendants case.''
  These were flight attendants who said they had been affected by 
secondary smoke. They won the $349 million: $300 million went to a new 
research foundation, and the lawyers took $49 million. Not one dime did 
a single flight attendant get because of the lawyers in the suit--not a 
dime. The entire amount went to lawyers and the research foundation. It 
is clear what happened--lawyers, $49 million; clients, $0, and that is 
the way the score usually turns out.
  The litigation machine grinds on and on, long after settlements. More 
lawsuits, more billable hours and more attorney's fees. It goes on into 
infinity.
  The flight attendants' own lawyers sold them out for a quick buck--
$49 million to be exact.
  This is not an isolated case. The Texas Attorney General agreed to 
pay lawyers close to $2.2 billion, 15 percent of the settlement that 
Texas was able to negotiate with the tobacco companies--$2.2 billion to 
the lawyers.
  The lawyers involved in the settlement of the Florida suit claimed 
$2.8 billion, 25 percent of the entire settlement. The settlement was 
$11.3 billion, the lawyers want $2.8 billion.
  The judge in the Florida case said that their demands were 
``unconscionable.'' Certainly they are. They are unreasonable. But that 
didn't stop the trial lawyers. They were not going to let a judge stand 
between them and $2.8 billion. They could see the red meat. That didn't 
stop the trial lawyers. They filed a lien to prevent the State from 
collecting its first $750 million payment until they were paid. If they 
couldn't get the big money for themselves, neither did they want the 
children of the State of Florida to have it.
  One Mississippi lawyer is busy lining up a $1.39 billion payment. He 
admits that he spent at most $10 million on the case. This lawyer says 
that the fee might seem a little obscene. These fees have simply gotten 
out of control.
  Mr. President, this is a pillaging spree and nothing more. These 
trial lawyers rival Genghis Khan or any other raider that ever went 
after a pile of money.
  The trial lawyers are intent on plundering. They are now stealing 
from the public health trust. That is exactly what they are doing if 
this Tobacco Settlement Act comes about. They are simply stealing from 
the trust that we will be putting up for the public health and for the 
children. After all, some of them have already filed liens to prevent 
the public health payments until they have been paid.
  Mr. President, I say it is time to stop. This bill will do that. The 
tobacco settlement is a settlement to ensure medical care and future 
help of people who might have been affected by tobacco. It is not a 
lottery for trial lawyers. My bill makes sure the focus stays on 
children and not on lawyers. The trial lawyers want to play ``Wheel of 
Fortune'' with our money. Well, I say, no, it is not their money. Let's 
stop the scrambling for dollars and the greed. Public health versus 
private greed--let's get on with the public health part of it and put 
some restraints on the private greed. That is where we should draw the 
line.
  Mr. President, I thank you, and I yield the floor.

[[Page S444]]

  Mrs. BOXER addressed the Chair.
  The PRESIDING OFFICER. The Senator from California is recognized for 
5 minutes.
  Mrs. BOXER. Thank you very much, Mr. President. I want to take 5 
minutes out of the debate on this very important bill. I commend my 
colleague, Senator Feinstein, for her leadership in explaining why it 
is important, when we legislate, particularly on a matter of science, 
that we know exactly what we are doing and that we don't pass a bill 
that will have unintended consequences which could lead to setting back 
help to people who need it who are ill. I just wanted to mention that.

                          ____________________