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Friday, June 1, 2007

NCLC Urges District Court to Limit Use of Private Attorneys by Government Entities

WASHINGTON, D.C. - In a friend-of-the-court brief filed today, the National Chamber Litigation Center (NCLC) urged the U.S. District Court in Oklahoma to stop the state's attorney general from using private law firms to prosecute a case in the name of the state, and from entering into a contingency fee agreement that has the potential of costing business large sums of money to defend themselves.

"Seeking legal support from outside counsel is acceptable, but allowing private lawyers to litigate on behalf of the state is not," stated Robin Conrad, NCLC executive vice president. "And paying the private lawyers on a contingency rather than hourly basis would incentivize them to seek higher than warranted damages to pad their pockets."

In State of Oklahoma, et al. v. Tyson Food, Inc., et. al., the state of Oklahoma is suing several poultry related businesses for damages under the Comprehensive Environmental Response Compensation and Liability Act (CERCLA), also known as the Superfund Act, claiming the companies illegally discharged poultry waste into the Illinois River Watershed. As a result, the state's attorney general has sought legal representation from private law firms to prosecute those poultry companies.

"The use of private law firms to prosecute on behalf of any government entity raises serious conflict of interest issues," said Conrad. "The tax paying public loses out because legal fees paid to private lawyers in contingency fee arrangements with the state is money that would otherwise fund government services."

NCLC, the public policy law firm of the U.S. Chamber of Commerce, is a membership organization that advocates fair treatment of business in the courts and before regulatory agencies. The U.S. Chamber of Commerce is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

NCLC

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