Pennsylvania Supreme Court Should Put a Stop to 'Justice for Hire' Scheme

U.S. Chamber's Amicus Brief Says No-Bid Contingent Fee Contracts with the State are Unconstitutional, Unethical

WASHINGTON, D.C.—Today, the U.S. Chamber of Commerce filed a friend-of-the-court brief urging the Pennsylvania Supreme Court to put a stop to the Pennsylvania governor's unconstitutional contract that allowed a private contingent fee law firm file civil lawsuits on behalf of the state's citizens. The case is Commonwealth of Pennsylvania v. Janssen, Inc., et al.

"This litigation is more about the trial lawyers' personal financial interests than about the public's welfare," said Robin Conrad, executive vice president of the National Chamber Litigation Center, the Chamber's public policy law firm. "Pennsylvania's governor sold the state's sovereign authority to trial lawyers who are more interested in a multi-million dollar windfall than seeing that justice is served."

In September 2007, Governor Ed Rendell of Pennsylvania awarded a no-bid contract to the contingency fee law firm Bailey Perrin Bailey to sue drug manufacturers regarding the off-label use of certain prescription drugs. In filing the lawsuit, the law firm abused the state's sovereign authority to sue on behalf of its citizens to protect public interests.

The lawsuit has garnered widespread media attention because of the appearance of political impropriety. Bailey Perrin's founding partner, F. Kenneth Bailey, donated more than $90,000 to Governor Rendell's 2006 re-election campaign before being hired by the state. Bailey Perrin received several similar lucrative contingent fee contracts after making large donations to high-ranking political figures.

"This is not an isolated incident of a state contracting out its police power to contingent fee lawyers. It's the trial bar's latest business model, and it has affected litigation in several states," said Conrad. "These contingent fee arrangements are unconstitutional and unethical, and the courts need to put a stop to them."

NCLC is the public policy law firm of the U.S. Chamber of Commerce that advocates fair treatment of business in the courts and before regulatory agencies.

The U.S. Chamber is the world's largest business federation representing more than 3 million businesses and organizations of every size, sector, and region.

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