Philip Morris
Crs Report for Congress Attorneys' Fees in the State Tobacco Litigation Cases
Fields
- Author
- Contrubis, J.
- Area
- GOVT AFFAIRS/CARLSTADT
- Document File
- 2074141757/2074141975/Settlement: House Jud. Atty Fees
- Type
- REPT, REPORT, OTHER
- Litigation
- Feda/Produced
- Site
- N925
- Master ID
- 2074141758/1778
Related Documents: - Named Organization
- Congress
- Congressional Research Service
- Ia Special Counsel
- Legislature
- Medicaid
- Congressional Research Service
- Recipient (Organization)
- Congress
- Author (Organization)
- American Law Division
- Congressional Research Service
- Library of Congress
- Congressional Research Service
- Date Loaded
- 04 Dec 2002
- UCSF Legacy ID
- sjc52c00
Document Images
CRS-13
fees plus a reasonable multiplier. In such an event, the state will not settle the
case unless the defendants agree to pay said amounts.
Washington
Compensation shall be contingent upon recovery and collection of damages.
If there is a recovery and collection of damages or penalties for the state, the
amount of compensation to the Special Assistants will be as follows: (a) 25% of
all amounts recovered from any source for the first $20 million; (b) 20% of all
amounts recovered from any source for the next $20 million; (c) 10% of all
amounts recovered for the next $60 million; (d) 3% of all amounts recovered
above $100 million. 10% of the total fees paid to the Luvera law firm will be
contributed to a specified charity.
Reimbursement by the state for any costs advanced by the Special
Assistants is subject to recoveries or court awarded costs in the lawsuit or
legislative appropriation. In the event there is no receipt of penalties, damages
or court awarded attorney fees, the Attorney General will seek a legislative
appropriation to reimburse such costs.
In the event the resolution of the tobacco litigation involves the provision
of goods, services or other "in-kind" payment, the state will seek compensation
for the Special Assistants equal to the prevailing hourly rate and expenses that
they would have been entitled to otherwise. If such compensation does not
materialize, the Attorney General will petition the legislature to appropriate
funds to reasonably compensate the Special Assistants for both fees and
expenses.
West Virginia
The Special Assistants have agreed to litigate this case pro bono.
Wisconsin
The Special Assistants shall receive a contingency fee of 10% for monies
recovered by the state plus reasonable disbursements, if recovered by settlement
or judgment entered into within 180 days of the commencement of litigation.
If a settlement or judgment is entered into between 180 and 360 days the
contingency fee is 15%. Thereafter, the contingency fee is 20%. If the Governor
finds that such a payment would be unreasonable, he may apply to the court to
modify the amount of compensation due the Special Assistants.

CRS-8
Notwithstanding the above, the state shall pay no higher rate of
compensation than is paid by any other co-plaintiff that the Special Assistants
represent in the tobacco litigation.
Mississippi
Mississippi does not have a fee agreement with its Special Assistants. The
state appears to be relying on its claim for reasonable attorneys fees and costs
of the tobacco litigation, as set forth in its complaint.
Missouri
The state does not have Special Assistants at this time.
Montana
Compensation shall be contingent upon recovery and collection of damages
or monetary penalties, whether by settlement or judgment. Compensation will
be as follows: (a) if the tobacco litigation is resolved in a global settlement
within the first 90 days of retaining the Special Assistants, their fee is based on
an hourly rate or a flat fee of $100,000, whichever is greater; (b) 10% of any
recovery obtained, because of any judgments entered and any settlement
substantially completed (whether through federal legislation or in any other
manner) after the 90 day period, but during 365 days of retaining the Special
Assistants; (c) 12% of any recovery obtained, because of any judgments entered
and any settlement substantially completed (whether through federal legislation
or in any other manner) after 365 days of retaining the Special Assistants but
before trial; and (d) 15% of any recovery obtained, because of any judgments
entered and any settlement substantially completed (whether through federal
legislation or in any other manner) after trial begins. The state reserves the
right to petition the court before payment to determine the reasonableness of
attorney fees outlined in the fee agreement. If as a result of a global settlement
a separate pool for attorneys fees is created, the Special Assistants shall be paid
solely out of that pool.
Reimbursement by the state for any costs advanced is subject to recoveries
or court awarded costs in the lawsuit. However, in the event there are no
recoveries or court awarded costs, the Attorney General will seek a legislative
appropriation to reimburse such costs.
In the event that the litigation is resolved by settlement involving only
injunctive relief, nonmonetary payment, the provision of goods and services, or
any other "in-kind" terms, the Special Assistants will receive costs and hourly
fees plus a reasonable multiplier. In such an event, the state will not settle the
case unless the defendants agree to pay said amounts.
Nevada
The state shall pay the Special Assistants on a contingency fee basis
provided that the state realizes a recovery. Upon recovery, the state shall pay
the following: (a) if the tobacco litigation is resolved in a global settlement
within the first 90 days after approval of the agreement retaining the Special
Assistants, the fee is based on an hourly rate or a flat fee of $100,000, whichever

CRS-9
is greater; (b) 10% of any recovery obtained, because of any judgments entered
and any settlement substantially completed (whether through federal legislation
or in any other manner) after the 90 day period, but during 365 days of
retaining the Special Assistants; (c) 12% of any recovery obtained, because of
any judgments entered and any settlement substantially completed (whether
through federal legislation or in any other manner) after 365 days of retaining
the Special Assistants but before trial; and (d) 15% of any recovery obtained,
because of any judgments entered and any settlement substantially completed
(whether through federal legislation or in any other manner) after trial begins.
Regardless of the outcome of the case, the state shall be liable for
reasonable expenses and disbursements of the litigation. However, the Special
Attorney must apply to the court for the recovery of all costs and expenses.
New Hampshire
The state has not provided any information regarding Special Assistants.
New Jersey
The state has not provided any information regarding Special Assistants.
New Mexico
Upon the successful recovery of damages, the Attorney General agrees that
the Special Assistants shall be entitled to petition the court for reasonable fees,
costs and expenses to be awarded to the Special Assistants. The Special
Assistants shall be reimbursed for their costs and expenses as provided for under
the New Mexico Rules of Professional Conduct.
If there is federal legislation that resolves the litigation in whole or in part
and a legislative appropriation or authorization of funds to cover fees, costs and
expenses for the litigation, the Special Assistants shall petition the court for the
recovery of fees, costs and expenses for whatever part of the litigation that has
been resolved by such legislation.
New York
The fee agreement is pending approval.
Ohio
Fees shall not be paid to the Special Assistants unless a recovery is awarded
and collected by the state. The Special Assistants shall be paid as follows: (a)
from April 28, 1997 to August 1, 1997, the Special Assistants shall be paid the
greater amount of $150,000 or $95 per hour; (b) after August 1, 1997, the
Special Assistants shall be paid 10% of any amount recovered; (c) from April 28,
1997 until December 31, 1997, and if the Attorney General on or before August
1, 1997, declares in writing that a settlement in principal has been achieved, the
Special Assistants shall be paid the greater of $1 million or $200 per hour. If
by December 31, 1997, no settlement has been executed or ratified the Special
Assistants shall be paid 10% of any amount recovered. If the Attorney General,
after issuing the above written statement of settlement, requests the Special
Assistants to continue to prosecute the tobacco litigation, then the Special

CRS-10
Assistants shall be paid 10% of any amount recovered. The state reserves the
right to petition the court before any payment to the Special Assistants to
determine the reasonableness of the fees and costs.
In the event that the litigation is resolved by settlement involving only
injunctive relief, nonmonetary payment, the provision of goods and services, or
any other "in-kind" terms, the Special Assistants shall receive costs and an
hourly fee for legal services provided, plus a reasonable multiplier.
Expenses incurred in the performance of the Special Assistants duties are
only reimbursable pursuant to terms specified by the parties.
Oklahoma
The Special Assistants shall receive a 15% contingency fee of the amount
recovered as a result of the tobacco litigation. If the state agrees to accept an
"in-kind" settlement, then it shall negotiate a mutually agreeable lawful
settlement of attorneys fees and expenses.
All costs advanced by the Special Assistants shall be deducted from any
recovery by the state and payable to the Special Assistants in addition to the
above compensation. If no recovery is made, neither the state nor the Attorney
General owes anything for costs, expenses or attorneys fees.
Oregon
The state has not provided any information regarding Special Assistants.
Pennsylvania
The Special Assistants shall be compensated from the proceeds of any
recovery in the tobacco litigation as follows:
(a) In the event the state receives a recovery in the litigation more than 2
years after the date on which the Complaint is filed, the fee shall be as follows:
(a) 20% of the first $100 million recovered; (b) 15% from a recovery of $100
million to $400 million; (c) 10% from a recovery of $400 million to $500 million;
and (d) no additional fee based on a recovery in excess of $500 million.
(b) In the event the state receives a recovery in the litigation more than 1
year but within 2 years after the date on which the Complaint was filed, the fee
shall be as follows: (a) 20% of the recovery up to $100 million; (b) 15% from a
recovery of $100 million to $300 million; and (c) no additional fee based on a
recovery in excess of $300 million.
(c) In the event the state receives a recovery in the litigation more than 6
months but within 1 year after the date on which the Complaint was filed, the
fee shall be as follows: (a) 20% of the recovery up to $100 million; (b) 10% from
a recovery of $100 million to $150 million; and (c) no additional fee based on a
recovery in excess of $150 million.

CRS-12
The repayment of costs to the Special Assistants is contingent upon a
recovery being obtained. If no recovery is made, the state owes nothing for
costs.
Utah
The state agrees to pay the Special Assistants a contingent fee of 25% of
the gross amount recovered or received, whether by compromise, settlement,
judgment, or otherwise. If no recovery is received, the state will owe no fees.
In the event that recovery is limited to injunctive or nominal damages, and
attorney fees are awarded, the Special Assistants are entitled to retain the
attorneys fees to the extent the award is based on the services provided by them.
The repayment of costs to the Special Assistants is contingent upon a
recovery being obtained.
Vermont
Compensation shall be contingent upon recovery and collection of damages
or monetary penalties, whether by settlement or judgment. Compensation will
be as follows: (a) if the tobacco litigation is resolved in a global settlement
within the first 180 days of retaining the Special Assistants, their fee will be a
flat fee of $100,000, which shall constitute payment in full for all fees and costs;
(b) if the tobacco litigation is resolved in a global settlement within the first 180
days of retaining the Special Assistants, and between the 90th and 180th day
the tobacco litigation is actively litigated by the Special Assistants, their fee will
be a flat fee of $200,000, which shall constitute payment in full for all fees and
costs; (c) 10% of any recovery obtained, because of any judgments entered and
any settlement substantially completed (whether through federal legislation or
in any other manner) during the first 365 days after the expiration of the 180
day period; (d) 12% of any recovery obtained, because of any judgments entered
and any settlement substantially completed (whether through federal legislation
or in any other manner) after the 365 day period, above, but before trial; and
(e) 15% of any recovery obtained, because of any judgments entered and any
settlement substantially completed (whether through federal legislation or in
any other manner) after trial begins. The state reserves the right to petition the
court before payment to determine the reasonableness of attorney fees outlined
in the fee agreement. If as a result of a global settlement a separate pool for
attorneys fees is created, the Special Assistants shall, at the option of the
Attorney General, be paid solely out of that pool.
Reimbursement for any reasonable costs advanced by the Special Assistants
is: (1) contingent upon receipt of damages or other monetary relief; and (2)
subject to preapproval as to reasonableness by the Attorney General. However,
in the event there is no receipt of damages or other monetary relief the Attorney
General will seek a legislative appropriation to reimburse such reasonable costs.
In the event that the litigation is resolved by settlement involving only
injunctive relief, nonmonetary payment, the provision of goods and services, or
any other "in-kind" terms, the Special Assistants will receive costs and hourly

CRS-11
(d) In the event the state receives a recovery in the litigation within 6
months after the date on which the Complaint was filed, the fee shall be as
follows: (a) 20% of the recovery up to $50 million; and (b) no additional fee
based on a recovery in excess of $50 million.
(e)In the event the state receives a recovery from a settlement concluded
within 1 year after the date on which the Complaint was filed, the Special
Assistants shall be paid the lesser of the contingent fee payable pursuant to (c)
and (d) or a fee based on time spent on the litigation and reported to the
Attorney General pursuant to a rate specified in the fee agreement.
The Attorney General shall agree to no settlement of the litigation that
provides only for non-monetary relief unless the settlement also provides
reasonably for the compensation of the Special Assistants by the defendants to
the litigation.
The Special Assistants shall be reimbursed for all reasonable, actual, or
ordinary and necessary direct nonlabor costs incurred in the litigation.
Reimbursement is subject to the state receiving a recovery from which such
reimbursement may be made.
Puerto Rico
The state has not provided any information regarding Special Assistants.
Rhode Island
The state does not have Special Assistants at this time.
South Carolina
The state agrees to pay the Special Assistants a contingent fee which is to
be set by the court and which, in no instance shall exceed 25% of the gross
amount recovered or received, whether by compromise, settlement, judgment, or
otherwise or whether or not statutory ratification is required. However, if the
litigation is settled within 90 days of the date on which the Special Assistants
were retained, the court set fee may not exceed 15% of the gross amount.
The Special Assistants shall be reimbursed for court costs and expenses of
litigation if the state receives a recovery.
South Dakota
The state has not reached an agreement with its Special Assistants at this
time.
Texas
The Special Assistants shall be paid a contingency fee of 15% of the total
recovery to the state. If the state agrees to accept an "in-kind" settlement, then
the state shall negotiate a mutually agreeable settlement of attorneys fees and
expenses.
