As Contracting with Private Sector Attorneys Increases, Wisconsinites Favor Greater Public Accountability
WASHINGTON, Sept. 17 /PRNewswire-USNewswire/ — In a commentary published today in the National Law Journal, American Tort Reform Association president Sherman “Tiger” Joyce proposed new voluntary standards designed to improve government transparency and accountability when states hire outside counsel to litigate on behalf of state residents.
“With increasing regularity, states are hiring personal injury lawyers from the private sector to perform legal work for the state, and hundreds of millions of dollars in contingency fees are sometimes at stake,” explained Joyce. “Yet some state officials award such lucrative contracts to their political supporters without competitive bidding and with little or no oversight from the public.”
Joyce said the Transparency Code comprises the good-government principles of public disclosure, competitive bidding, oversight and fiscal accountability.
“We hope state policy-makers will closely examine these principles and begin a constructive dialogue about the merits of a uniform process for hiring outside counsel,” Joyce continued. “If elected officials are to be successful in pursuing and protecting the public interest, they must have the full confidence of the citizenry. Transparency and accountability form the foundation of such confidence.
“In Wisconsin, special counsel contracts originate in the governor’s office. With its existing statutory requirements that govern them, Wisconsin has earned a reputation for open government and accountability, but there’s still room for improvement. Too often non-competitive contracts are negotiated behind closed doors,” said Joyce.
In April, ATRA released results of a survey that showed a strong majority of Wisconsinites favor posting attorney general-outside lawyer contracts on the Internet for public inspection and requiring those outside lawyers to keep detailed records of their hours and specific work performed, among other things.
Full results of that survey and the detailed Transparency Code are posted on ATRA’s AGAgendaWatch Web site at http://www.agwatch.org/. The Code also is detailed immediately below.
ATRA Attorney General Transparency Code
State attorneys general need the discretion and independence to enforce the laws of their respective states free from the influence of parties that may have a private interest in the outcome of litigation.
Litigation can be sufficiently complex, time consuming and expensive that at certain times, and on certain occasions, it may be necessary for state attorneys general to retain the services of outside legal counsel to perform work on behalf of the state.
To ensure transparency in these contracting processes and relationships, these five principles should be followed:
A. DISCLOSURE: All contracts with vendors, including outside counsel, who
provide services to the state or perform legal work in the name of the
state, should be posted on the Internet for public inspection.B. VALUE: In every instance, the attorney general should seek to provide
the highest quality services at the best value to state citizens when
contracting with outside counsel. Unless an extraordinary situation
requires assistance from a specific legal expert with technical or
scientific experience not generally available, every effort should be
made to competitively bid contracts for outside counsel.C. OVERSIGHT: Given that contingent fee-based contracts are often used
when attorneys general are pursuing litigation that potentially has a
significant public policy or regulatory impact, such contracts should
be subject to review by the Legislature.D. REPORTING: Outside counsel providing services to the attorney general
on behalf of a state’s citizens and taxpayers on a contingent fee basis
shall be required to disclose detailed information on the hours worked,
services performed, and fees received from the state, as long as this
reporting does not undermine the attorney-client privilege.E. ACCOUNTABILITY: All monies recovered by the attorney general in excess
of $250,000 as a result of lawsuits won or settled by the state should
be deposited in the state treasury for appropriation by the legislature
unless a settlement with the attorney general’s office stipulates that
the funds shall be allocated to a specific entity. At no time, shall an
attorney general enter into a settlement that allows the office of the
attorney general to disseminate funds at its discretion.
The American Tort Reform Association, based in Washington, D.C., is the only national organization dedicated exclusively to tort and liability reform through public education and the enactment of legislation. Its members include nonprofit organizations and small and large companies, as well as trade, business and professional associations from the state and national level.
First Call Analyst:
FCMN Contact:
Source: American Tort Reform Association
CONTACT: Darren McKinney of the American Tort Reform Association,
+1-202-682-0084
Web site: http://www.agwatch.org/
