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And the Winners Are . . .

Since 1998, an arbitration panel has awarded more than $13 billion in fees to lawyers who represented states in litigation against Big Tobacco. Below is a list of the 19 awards. The arbitration panel usually consisted of John Calhoun Wells, Harry Huge and Charles Renfrew. The chart shows awards, lawyer involvement and the status of the case at the time of the settlement.

State/Date Fee Announced Payments to State Awards to Lawyers Panel Vote Litigation Status Law Firms
Mississippi
12/11/1998
$4.1 billion $1.4 billion 2-1; Renfrew dissents Filed 5/94. First state to sue.
Settled 7/97, before trial.
Richard Scruggs; Ness Motley
Florida
12/11/98
$13.2 billion $3.4 billion 2-1; Renfrew dissents Filed 2/95. Settled 8/97, before trial. Nine Florida firms plus Scruggs; Ness Motley
Texas
12/11/1998
$17.365 billion $3.299 billion 2-1; Renfrew dissents Filed 3/96. Settled 1/98, before trial. Five Texas firms plus Scruggs; Ness Motley
Massachusetts
7/29/1999
$8.3 billion $775 million 2-1; Huge dissents, favors $1.5 billion fee Filed 12/95. Fifth state to sue. Trial set for 2/99; summary judgment motions argued. Lawyers had 25% fee contract. Ness Motley; Lieff, Cabraser; four Boston firms. Lawyers suing to enforce contract
Hawaii
9/8/1999
$1.38 billion $90 million Unanimous Filed 1/97. Survived motion to dismiss. No depositions taken. Ness Motley; Scruggs; four Hawaii firms
Illinois
10/7/1999
$9.3 billion $121 million Unanimous Filed 11/96. Survived motion to dismiss. No depositions. Hagens Berman; Lieff, Cabraser; two other firms. Lawyers suing to enforce 10% contingency contract
Iowa
12/29/1999
$1.9 billion $85 million Unanimous Filed 11/96. Medicaid reimbursement claim dismissed; upheld by Iowa Supreme Court. Ness Motley; six other firms
Louisiana
1/31/2000
$4.6 billion $575 million 2-1; Renfrew dissents Filed 3/96. Sued tobacco's insurers; removed to federal court. Little progress. Seventeen firms
Kansas
1/31/2000
$1.767 billion $54 million Unanimous Filed 8/96. Won key privilege issue. Ness Motley; Scruggs; two Kansas firms
Ohio
5/8/2000
$10.1 billion $265 million 2-1; Renfrew dissents Filed 5/97. No depositions taken or documents produced. Ness Motley; Scruggs; and five other firms
Oklahoma
5/17/2000
$2 billion $250 million Unanimous Filed 8/96. Significant discovery and trial prep. Ness Motley; Scruggs; four Oklahoma firms
Puerto Rico
6/7/2000
$2.2 billion $75 million Unanimous Filed 6/97. Credit given for increasing commonwealth's settlement share. Ness Motley; Scruggs; two local firms
New Mexico
8/21/2000
$1.25 billion $24.5 million 2-1; Plaintiffs representative, Jim Carrigan dissents Filed 5/97. Not much progress. Two local firms
South Carolina
10/23/2000
$2.3 billion $82.5 million 2-1; Renfrew dissents Filed 5/97. After nine months, AG told lawyers to stop work. Ness Motley
Utah
10/25/2000
$1 billion $64.85 million Unanimous Filed 9/96. Modest contribution to MSA; counsel had 25% contract. Giauque, Crockett, Bendinger & Peterson (Salt Lake City); Ness Motley
California
3/5/2001
$25 billion (split evenly between state and cities and counties) $637.5 million Unanimous Cases brought by counties, cities, and private AGs. Trial date for some set for early '99. Milberg, Weiss; Lieff, Cabraser; two other California firms
Michigan
9/7/2001
$8.7 billion $450 million 2-1; Renfrew dissents Filed 8/96. State AG's staff handled most of the work. Ness Motley; Scruggs
New York
10/23/2001
$25 billion $625 million 2-1; Renfrew dissents Filed 1/97. Outside counsel not retained until 9/97. Ness Motley; Scruggs; Hagens Berman; three local firms
Davis/Ellis
7/15/2002
$0 $1.25 billion 2-1; Renfrew dissents Filed 6/96. Fourth private AG suit in California. Not included in master settlement. Castano Group
Awards are still to be announced for the District of Columbia, Maryland and Missouri.
Source: Fee arbitration panel decisions
(The American Lawyer, December 2002)

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