(This is definitely worth your time. - promoted by Sam Jones)
I saw this article "How Business Crushed the Trial Lawyers" in last week's issue of Business Week and didn't want to let it go unremarked. The article makes clear just how big a victory the big corporations have won over trial lawyers in various states around the country. Particularly in Texas:
Coming up with creative new lines of litigation-and doing it on the cheap-is imperative for plaintiffs' lawyers in Texas these days. No other state's trial bar has suffered a greater reversal of fortune.
To make a long story short, the Texas Trial Lawyers have gotten their asses kicked. Basically, their political enemies have used money to influence elections so effectively that trial law, as a profession is endangered. The trail lawyers have been defunded. Their excess and lack of political smarts spurred the Big Insurance and other big money corporations to pour more and more money into Texas politics, tipping the balance to the GOP.
Even worse, the same genius who has driven the Texas Trial Lawyers Association into the ground has been running the strategy for the Texas Democratic Party. His name is Russ Tidwell.
He's the guy who advised wealthy trial lawyers like Walter Umphry, Joe Jamail, and John Eddie Williams to funnel millions into supporting the gubernatorial campaign of Republican-turned-Independent Carole Keeton Strayhorn. At the same time, Tidwell was exercising veto power over the Texas Democratic Party. He vetoed candidates -- saying "no thanks" to candidates for state representative if he didn't like them or their chances. He vetoed the likes of John Sharp and Pete Laney when they were urged by supporters to run statewide in 2006. He never even considered backing Chris Bell. He personally threatened candidates who were already running if they didn't fire consultants he disapproves of to hire his favorite hacks. Even though Democrats have steadily lost power under his reign, he is allowed to keep calling the shots - and losing.
But my blog isn't about politics. It's about political tactics, so bear with me as I pull more from the Business Week story.
Once Texas trial lawyers rode high:
Until well into the 1990s, Lone Star State plaintiffs' lawyers walked tall. They pioneered asbestos litigation in the U.S., racked up eye-popping verdicts in cases involving everything from business fraud to diet drugs, and perfected the art of "forum shopping." Companies dreaded getting sued in places like Eagle Pass, in the Rio Grande Valley, which has bucked the trend in Texas and remains a "hellhole" for business defendants, according to the American Tort Reform Assn.
Money poured in. Five firms, Umphrey's among them, shared $3.3 billion for representing Texas in its suit against the tobacco companies. Even putting aside the cigarette windfall, top plaintiffs' lawyers boasted eight-digit incomes. That was several times higher than blue-chip corporate attorneys in New York, Washington, and Houston, whose annual take topped out in the low seven digits. For Umphrey's 70th birthday bash this summer, organizers had to move three planes and a helicopter out of his firm's private hangar so 400-odd guests could rock out to live performances by Jerry Lee Lewis and Chuck Berry. Houston attorney John M. O'Quinn, who has cashed in on tobacco, breast implants, and diet drugs, has amassed a classic car collection worth $100 million.
Business spent a fortune to lobby in Washington but couldn't get much done:
Initially in the liability-reform wars, the plaintiffs' bar and their opponents pursued very different strategies. While trial lawyers poured considerable resources into electing plaintiff-friendly state judges and legislators, business groups aimed to win federal liability limitations in Washington, but repeatedly saw their efforts founder.
But then Bush's brain stepped in:
One player who realized that a different approach was needed: Karl Rove. Not only did the current White House deputy chief of staff help elect George W. Bush as governor of Texas in the 1990s, but he also was instrumental in judicial-election campaigns that, by 1998, had converted the makeup of the Texas Supreme Court from 100% Democratic to 100% Republican. He played a similar role in flipping Alabama's high court. Particularly during the Bush presidency, tort reform has become a major talking point for Republican candidates at both the state and federal levels.
...
The trial lawyers and the business community entered a campaign-spending arms race, but even for the well-heeled trial bar, it was no contest. In 2004, for example, business groups spent $21.5 million on state supreme court elections, eclipsing the amount spent by plaintiffs' attorneys and their allies ($13.3 million) for the first time, according to Justice at Stake Campaign, a Washington group that monitors judicial independence.
Much of the money, from both sides, was channeled through state-level organizations that played a critical role in reshaping the legal landscape. The most powerful force for change in Texas has been the home-grown Texans for Lawsuit Reform. Since 1996, tlr's political action committee has spent more than $13 million promoting liability limits, according to Texans for Public Justice, a not-for-profit organization that tracks campaign spending and opposes litigation curbs. Big donors to tlr's pac in 2006 included Bob Perry, a Houston homebuilder and funder of the Swift Boat group that attacked John Kerry ($601,000); financier and oilman T. Boone Pickens ($500,000); and real estate magnates Harlan and Trammell Crow ($220,000 together).
Sipping wine in his Houston home one afternoon in November, Hugh Rice Kelly, former general counsel of Reliant Energy Inc. (RRI ) and a leader of tlr, ticks off the changes his group has helped usher in. "We have covered most of the things we wanted to have corrected," he says, looking more than satisfied.
The changes came not all at once but in waves, starting in 1995 and crescendoing in 2003 with a far-ranging set of liability limitations.
I want to make it clear that I oppose so-called "tort reform." The changes in the law -- particularly those passed in 2003 -- strip ordinary Texans of their right to a day in court and allow Big Business to continue to be negligent and hurt people without any accountability. Tidwell's bad political advice to his organization and its members has cost many of them their livelihoods. It has cost Democrats their races. It has cost Texas children their health insurance, Texas teachers their health benefits and Texas families their access to affordable college. But Tidwell himself never seem to pay the cost.
It's up to the Trial Lawyers if they want to keep letting Tidwell run their political fortunes into the ground. But it's time for Texas Democrats to put Tidwell out to pasture.
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