Attorney General Sunshine / Private Attorney General Sunshine

Problem

Since the landmark recoupment lawsuits against the tobacco industry, state attorneys general have sought to recover costs from other industries, including firearms and pharmaceuticals, by partnering with the personal injury bar to sue whole industries. The growing trend of “regulation through litigation” presents more opportunities for government retention of personal injury lawyers on a contingent fee basis, and more opportunities for abuse.

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ATRA's Position:

ATRA supports “sunshine” legislation that requires legislative approval of most large contingent fee contacts between government and personal injury lawyers, requires personal injury lawyers to keep track of their time spent on government cases, and reasserts the legislature’s oversight of “regulation through litigation.”


Opposition Opinion:

The personal injury bar’s opposition of “sunshine” legislation governing government retention of personal injury lawyers protects the multi-million-dollar contingent fees that the personal injury bar hopes to recover from future “regulation through litigation” partnerships with government.

Government Retention of Personal Injury Lawyers: S.B. 1132 (2012)

Arizona|2012

Limits contingency fees by prohibiting the state from entering into

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Limits contingency fees by prohibiting the state from entering into a contingency fee contract providing for the state’s private attorney to receive a contingency fee from this state’s portion of the recovery.  The bill also requires posting of executed contingency fees contracts unless the attorney general determines that the posting may cause damage to the reputation of any business or person.


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Government Retention of Personal Injury Lawyers: H.B. 2423 (2011); A.R.S. § 41-4801.

Arizona|2011

Bars the state from entering into a contingency fee contract

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Bars the state from entering into a contingency fee contract with a private attorney unless the attorney general first makes a written determination that the contingency fee representation is both cost effective and in the public interest.  The contract must be posted on the attorney general’s website for at least 365 days.  Limits the amount of aggregate contingency fees that the attorney may receive. The private attorney may not receive more than 25% of any recovery less than $10 million, 20% of any recovery of between $10 million and $15 million, 15% of any recovery of between $15 million and $20 million, 10% of any recovery of between $20 million and $25 million, and 5% of any recovery of more than $25 million.


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