Lawyers Get Prop. 100 Money Plea

The California Trial Lawyers Assn. has assessed its 7,000 members $600 to $2,000, depending on how long they have practiced law, to support Proposition 100, the insurance initiative the organization is funding.

In a letter dated July 28, the same day it was publicly revealed that the insurance industry planned to spend $43 million on its own initiative efforts, which are directly contrary to the trial lawyers’ interests, the CTLA told its members, “We need more money and we need it now!”

The letter said: “We have received substantial contributions from many of you, yet we have only raised 25% of the total amount needed to put our message across. We need contributions from those of you who have not yet contributed and more money from those of you who already have.”

Lawyers by July 1 had given at least $1.8 million to support the initiative, nearly three-quarters of the $2.5 million raised by that date.

$5.4 Million From Lawyers

The 25% figure used in the letter indicates the CTLA wants to raise at least $5.4 million more from lawyers alone.

Proposition 100 is heavily weighted toward trial lawyers’ interests. If it got more votes than other initiatives, it would rule out provisions in those initiatives that impose limits on attorneys’ fees. It would give lawyers the power to intervene, at insurance company expense, in insurance rate decisions and would not restrict lawsuits stemming from auto accidents. It would specifically rule out an insurance industry-backed no-fault initiative on the Nov. 8 ballot.

(The no-fault initiative would scrap the current auto insurance system and substitute one in which drivers would be compensated for their damages up to a certain level. In exchange, the drivers would give up their right to sue except in cases of serious and permanent injuries or losses exceeding certain limits. Payments for “pain and suffering” would be reduced.)

A spokeswoman for the CTLA said CTLA bylaws do not allow the association to discipline its members if they do not meet assessments.

Unanimous Decision

The CTLA letter said the decision to levy the assessment was a unanimous one of the organization’s executive committee and each member of the executive committee signed the letter.

The CTLA letter called for members who have practiced law less than two years to pay $600, those in practice from two to five years to pay $1,200 and those who have practiced for more than five years to pay $2,000.

The CTLA spokeswoman said she could not provide a breakdown as to how many of the members would be assessed each amount.

The letter began: “This is, without a doubt, the most important letter reaching your desk in your career. . . .

“The lawyer-bashing ads you see on television are paid for by the Insurance Industry as part of their . . . campaign to pass Propositions 104 (No-Fault), 106 (Attorneys Fees Limitations) and 101 (Polanco/Coastal Insurance). These ads and propositions are anti-consumer and threaten to destroy the entire legal system, the rights of your clients and your ability to practice law.”

The letter also said that the CTLA assessment “is unprecedented but these are unprecedented times.”

The Proposition 100 campaign also sent CTLA members a memo from its coordinator, Dick Woodward of the campaign management firm of Woodward & McDowell. Taking note of the several conflicting insurance initiatives on the fall ballot, Woodward said:

“Rarely has a campaign been YES on one issue and NO on three others. This requires a special strategy that puts us on radio and television with commercials that hit each initiative in varied ways.”

The memo indicated the trial lawyers will be neutral on a fifth initiative, a Ralph Nader-backed measure being sponsored by the Voter Revolt organization. That initiative, in a number of ways, would be even more detrimental to insurers’ interests than the one the lawyers support.