Plaintiff lawyers suing oil companies over the oil spill in the Gulf of Mexico are asking Congress to enact changes that would very likely bring them a bigger piece of the lawsuit cash pie at the expense of the victims in this disaster. Such a move would be another disaster for the thousands of people who have suffered catastrophic losses because of this spill.
In a recent editorial, the Wall Street Journal pointed out that one of the plaintiff bars’ closest allies, Mississippi Attorney General Jim Hood, went to Congress to lobby for a change in law that would allow him and other trial lawyers to sue Gulf oil spill companies in state court instead of federal court. So, why does he want to change the rules in the middle of the game?
Read the WSJ editorial here to understand how this change could translate into huge contingency fees for the trial bar. In short, Hood and the plaintiff lawyers believe the state judges they’ve helped elect in Mississippi would be more willing to approve settlements they’ve designed and requested reaping them multi-million dollar fees – the kind of over-the-top fees that got them in hot water with federal judges in lawsuits they filed in the aftermath of Hurricane Katrina.
I pointed out in my most recent “Lets Be Fair” commentary that the civil justice system’s first job is to make sure that those who were hurt because of the Gulf oil spill get the compensation they deserve, not make trial lawyers richer. But Mr. Hood and his allies seem to be focusing on how to increase their share of the billions in dollars that will be paid out by BP and other companies.
Whether Congress sides with the plaintiffs’ bar or victims remains to be seen, but we agree with the Wall Street Journal when it says “Mr. Hood offered no compelling reason in his Congressional testimony that the lawsuits against the oil giant belong outside of federal court. The only reason would be to allow Mr. Hood and his ‘friends’ greater ability to stack the deck against the industry and the rule of law.”
If the trial lawyers are allowed to arrange sweetheart deals in state courts, every dollar in extra fees they are able to negotiate for themselves will come at the expense of victims who truly deserve the money.
