The Associated Press. June 8, 2010.
By SONIA SMITH, Associated Press Writer
BATON ROUGE La.—A measure that would allow Louisiana Attorney General Buddy Caldwell to hire lawyers on contingency squeaked out of the state Senate on Monday on the promise that it would help the state in any coming litigation against BP over the massive Gulf oil spill.
A contingency fee system would let outside counsel get a percentage of whatever damages are collected in a case, rather than an hourly fee.
Caldwell couldn’t gain traction for similar legislation in the House last year, but supporters now argue the oil spill gives the issue increased urgency. Senators voted 21-16 to approve the measure sponsored by Senate President Joel Chaisson, D-Destrehan. The measure is set to go to the House this week.
Chaisson dubbed the legislation “a reasonable and common sense” approach that is necessary to put Louisiana on equal footing with the other Gulf states during upcoming oil spill litigation. Chaisson said 48 states allow attorneys general to hire lawyers on contingency fees.
Without the legislation, Caldwell’s hands would be tied during “the biggest fight of his career,” Chaisson said.
Louisiana is facing staggering devastation to both its coast and economy, Chaisson said, and approving his contingency bill is one of the few concrete steps the Legislature can take to help.
“How can we go home and tell our constituents we didn’t do one of the few things we could do?” Chaisson asked.
Sen. Jack Donahue, R-Covington, criticized the proposal because he said it would allow lawyers to walk away with a large chunk of an eventual oil spill settlement.
“Giving it away on a percent basis not in Louisiana’s best interest,” Donahue said, arguing that it would be better to give the attorney general’s office the cash to hire all the lawyers it needs outright.
Sen. Norby Chabert, D-Houma, disagreed, saying the bill would let Louisiana operate on equal footing with its neighbors.
“Let’s not send him into a gunfight with a knife,” Chabert said of Caldwell.
Last week, Gov. Bobby Jindal carved out $5 million of a $25 million oil spill grant from BP PLC for Caldwell’s office to use to prepare for spill related litigation. Caldwell has requested another $22 million. Chaisson said Louisiana would require that money and the ability to hire lawyers on contingency to be on equal footing with other states.
Business groups have lobbied against the bill, but Chaisson said the legislation is written so tightly that it addresses concerns that lawyers would abuse the contingency system to sue corporations with abandon in hopes of collecting cash settlements.
Online:
Senate Bill 731 can be found at http://www.legis.state.la.us