Campaign Spending in Prop. 51 Conflict Nears Record

In what is approaching a state record, more than $9.2 million has been raised by both sides to fight the bitter campaign over Proposition 51, the “deep pockets” initiative, according to reports filed Friday with the secretary of state.

Backers of the June 3 initiative--mainly local governments, the medical profession, insurance companies and other businesses--have raised more than $5.1 million, and have spent all but about $159,000 of it. The amount raised includes more than $1.4 million that the proponents gathered to successfully qualify the measure, which would place limits according to degree of blame on non-economic damages payable by co-defendants in personal injury lawsuits.

Initiative opponents--primarily plaintiffs’ lawyers, consumer groups and environmentalists--meanwhile, have reported raising $4.1 million since Jan. 1. Through May 17, the close of the current reporting period, the opposition had spent all but about $325,856 of that amount.

With a total of more than $2.1 million in contributions, the California Medical Assn. is by far the measure’s largest backer. In addition, the insurance industry and business groups have pumped hundreds of thousands of dollars into the effort to pass the initiative.

The vast majority of the more than 1,900 contributions to the opposition campaign, meanwhile, came from plaintiffs’ lawyers or law firms, according to the report. The largest single contributor to the No-on-51 campaign is the Los Angeles law firm of attorney Browne Greene, president-elect of the California Trial Lawyers Assn. The firm gave $210,000, according to the report. At the same time, more than 30 law firms contributed between $25,000 and $100,000, the figures showed.

Both Sides React

Spokesmen for both sides were quick to seize on the just-released figures as further evidence of the merits of their respective campaign arguments, which have been made primarily over the airwaves. Backers in campaign statements and commercials have claimed that lawyers are opposing the measure because they would lose money if jury awards were decreased in cases where the liability of “deep pockets” defendant is limited to their degree of fault.

The opposition has claimed that the measure would not help cities and counties find liability insurance. Opponents contend that the measure’s main beneficiaries would be those interests--such as doctors, insurance companies and businesses--who do not want to fully compensate victims for their injuries.

“(The campaign report) is a Who’s Who of potential corporate wrongdoers in our state and puts to rest the big lie in the campaign that Proposition 51 is simply about making sure that municipalities can get insurance,” said Harvey Rosenfield, campaign coordinator for Citizens Against Proposition 51.

Richard Woodward, manager of the Yes-on-51 campaign, countered, “I’m not surprised at the figures. My understanding is there are very few, if any, non-trial lawyers that have contributed (to the opposition) and, as far as I’m concerned, that proves what we’ve said all along. They (the trial lawyers) are trying to protect their own vested interests to the detriment of the rest of California.”

The amount raised so far is closing in on the record $10.4 million spent by both sides in the November, 1984, campaign involving Proposition 36, the tax-slashing measure sponsored by tax crusader Howard Jarvis. In that same campaign, $10.3 million was spent in the battle over Proposition 39, a reapportionment initiative. Both measures were defeated.

Researcher Cherry Gee contributed to this article.