House Bill Attempts to Cap Lawyers’ Fees in Tobacco Suit

Attorneys’ fees in the national tobacco lawsuit settlement would be capped under legislation introduced Friday by Rep. Christopher Cox (R-Newport Beach).

The legislation is among the first of what is expected to be a flurry of bills modifying the $368.5-billion settlement reached between 40 states and cigarette makers in June. Congress must approve the deal for it to be enacted.

Attorneys’ fees would be capped at $150 per hour plus expenses under the bill co-sponsored by Reps. Cox, Scott McInnis (R-Colo.), and Paul McHale (D-Pa.). Lawyers would also have to document all the hours they worked for the settlement.

Under current terms of the settlement, the lawyers representing the states are expected to receive from $92 billion to $111 billion as payment, a fee McInnis described as “the largest attorney fee in the history of the world.”

“We should not stand idle as some private interest marches off with so much money that would be available for public health,” Cox said.

The congressmen said they couldn’t estimate how much the lawyers would be paid under their bill because the lawyers have not disclosed their hours or expenses. However, they said, no lawyer’s office would get more than $1 million under their bill, while one office is expected to collect more than $1 billion under the current terms.

Cox said that the attorneys were misusing a payment system designed to help poor people afford to go to court. The lawyers currently would get a percentage of the settlement, called a contingency, as payment instead of an hourly fee.

McInnis, who has had numerous meetings with House leadership about the settlement, said that capping the fees is a priority. Congress is expected to take up the settlement when it returns in January from its annual recess.

“I think it’s fair to say if something’s not done about the legal fees, this settlement isn’t going anywhere,” McInnis said.