A national business group Wednesday mailed requests to attorney generals in 21 states including Kansas asking for records related to last year's multibillion dollar tobacco lawsuit settlement.
The group contends the fees collected by private law firms working for the states were excessive.
"That's our view," said James Wootton, president of the U.S. Chamber of Commerce Institute for Legal Reform, when asked if $27 million in fees awarded to a Topeka law firm was too much. "And (the contract between the firm and Kansas) seems to be designed to avoid the review of the court."
Wootton said private law firms, including Entz and Chanay, which represented the state of Kansas against the tobacco giants, received an exorbitant sum for their work. Even though some attorneys fees were based on contingency, which means that the lawyers are compensated upon winning a case, the payments still should be subject to judicial review, he said.
Wootton said he has filed Freedom of Information Act requests in the 21 states seeking details about the contracts between various law firms and state attorneys general.
"We want all documents pertaining to the formation of those contracts," he said. "Everything that happens, in regards to fees, is built upon that agreement."
Entz and Chanay will receive about $27 million in fees over 25 years from the $1.8 billion settlement slated for Kansas. Attempts to reach spokespersons for the Topeka firm, which formerly employed Kansas Atty. Gen. Carla Stovall, were unsuccessful.
Wootton also said the large fees would foster new lawsuits aimed at businesses, thereby damaging the economy.
"Many law firms have pledged to invest money in more lawsuits," he said. "This is making litigation very well-financed."
Because the requests were mailed Wednesday, Stovall hadn't received it yet, spokeswoman Tiffany Ball said. Once the request is received, Stovall and another attorney will determine whether any records could be released, Ball said.
State Rep. Tony Powell, R-Wichita, said he was pleased that the Institute for Legal Reform had inquired into the tobacco settlement.
"I'm pleased to see the business community wake up to this," said Powell, an outspoken opponent of the Entz and Chanay fee. "I hope the Chamber continues to highlight one of the most egregious issues surrounding this the political payoff of well-connected lawyers by various attorneys general around the country for doing virtually no work. It's good to see they understand how wrong this is. I'm glad to have them on our side."
Mark Hutton, partner in the Wichita law firm Hutton and Hutton, said his firm could have minimized fees and increased the settlement awarded to Kansas.
"Had we been involved, Kansas would have gotten at least $2 billion more," said Hutton, whose firm specializes in medical malpractice cases and was denied the case by Stovall.
"You have to look at attorneys fees on a case-by-case basis," Hutton said. "The first states with the extremely active lawyers that did the pioneer work, they deserve more. But these Johnny-come-lately states that filed a cookie-cutter lawsuit by simply changing the name of the state don't."
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