ATRA OFFERS NEW STUDY, URGES ATTORNEYS GENERAL TO ADDRESS 'TRANSPARENCY GAP'

NAAG Poised to Establish Best Practices for the Hiring and Use of Outside Counsel

Washington, DC, February 16, 2010 -- On the heels of a recent Wall Street Journal editorial (see “Progress on Pay to Play,” Feb. 12 ) that criticized as “ethically troublesome” the “cozy relationships between elected state officials and the plaintiffs lawyers who contribute to their campaigns,” the American Tort Reform Association today released a 50-state study of the statutes governing the hiring and use of outside counsel by state attorneys general.

The ATRA study, which grades state laws on the good government principles of public disclosure, competitive bidding, oversight and fiscal responsibility, demonstrates the inadequacies of requirements placed on state attorneys general who use private attorneys to represent their states. Inappropriate relationships between outside counsel and some attorneys general have helped fuel a litigation industry that ATRA President Tiger Joyce argues has spun out of control.

“With increasing regularity, some state attorneys general are hiring personal injury lawyers from the private sector to perform legal work for the state, often involving lucrative contingency fees worth hundreds of millions of dollars in state funds,” explained Joyce. “Abusive use of outside counsel by some state attorneys general is well-documented, as political supporters reap windfall rewards from no-bid state contracts with little or no public accountability or the checks-and-balances state governments should provide.”

The National Association of Attorneys General, poised to convene its annual three-day meeting March 1 in Washington, D.C., also recognizes the problems associated with outside counsel relationships. Earlier this year, a NAAG Best Practices Task Force was established and specifically charged with developing best practices for the hiring and use of outside counsel. The new ATRA study is meant to inform this development process by recommending “good government” standards lacking in many states’ laws.

“State attorneys general have a tremendous responsibility and opportunity to ensure their offices adhere to the strictest standards of transparency and accountability. The public expects nothing less of elected officials – especially their state’s top law enforcement official,” said Joyce. “We urge the NAAG task force to act swiftly to develop a set of best practices that reflect our recommendations.”

The study acknowledges that many attorneys general already go above and beyond legal requirements by proactively instituting good government practices in their offices, a consideration not reflected in the scope of this study. “These champions of transparency and accountability should be applauded, and they exemplify how NAAG best practices should be applied nationwide,” Joyce added.

Former Virginia Attorney General Jerry Kilgore, a longtime advocate for increased transparency and accountability among attorneys general, lauded the study’s release, saying “I know the members of the task force are taking their responsibility very seriously, as outside counsel issues have increasingly become a liability for many attorneys general. The use of outside counsel is necessary in certain situations, and I believe that adherence to best practices reflected in ATRA’s recommendations will help strengthen the public’s trust and confidence in the institution of state attorneys general.”

The NAAG Best Practices Task Force comprises six members: four current and two former attorneys general. No timeline has been established for the Task Force to follow; however, the ATRA study urges the task force to offer a complete set of best practices for the hiring and use of outside counsel in advance of the NAAG Spring Meeting planned in March 2010.

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The American Tort Reform Association (ATRA) is the only national organization dedicated exclusively to tort and liability reform through public education and the enactment of legislation. ATRA's membership includes non profits, small and large companies, as well as state and national trade, business, and professional associations.