WHEELING - West Virginia Chief Deputy Attorney General Frances Hughes did not speak during a hearing Wednesday in Wheeling concerning an $11.6 million settlement her office negotiated with Visa and MasterCard - but she had plenty to say when it was over.
After Ohio County Circuit Judge Ronald Wilson approved the settlement and exited the courtroom, Hughes confronted Steve Cohen, executive director of the West Virginia Citizens Against Lawsuit Abuse, about his involvement in Wednesday's proceedings. Hughes, waving a finger in Cohen's face, called his organization into question.
"Mr. Cohen, you were dishonest when you stood up and called your organization a citizen's watchdog organization," she said. "You are a business entity, and you will be exposed. Someday, you will get your due."
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Speaking to Ohio County Circuit Judge Ronald Wilson on Wednesday is Wheeling lawyer Teresa Toriseva, one of four attorneys who will share $3.9 million in fees associated with an antitrust and consumer protection action against Visa and MasterCard.
Cohen had presented a letter to Wilson during the hearing asking that the four law firms involved in the $11.6 million settlement against the credit card companies account for the work each did on the case before they could claim their share of up to $3.9 million in legal fees and expenses.
Cohen asked that Attorney General Darrell McGraw provide the court with information about the amount of work performed on the case by staff attorneys in his office, which could reduce fees paid to the four firms. He also said McGraw should make public all settlement options that were presented by Visa and MasterCard so West Virginia citizens and members of the class-action lawsuit may be informed of how their interests were represented.
Cohen did not respond to Hughes directly but later called the confrontation a good thing.
"It shows the court has reserved judgment on the fees," he said, referring to the fact that Wilson will rule in 30 days on how the attorneys will be paid. "The fact that Chief Deputy Attorney General Hughes had to wave her finger in my face after the hearing shows our argument has credibility."
Wilson did give his approval Wednesday to an $11.6 million antitrust and consumer protection settlement against Visa USA Inc. and MasterCard International Corp. The lawsuit claimed the two credit card companies price-fixed fees, forced merchants to accept debit as well as credit cards for payment, and committed other deceptive practices.
The $11.6 million settlement will fund a sales tax holiday on energy-efficient appliances in West Virginia. McGraw's office also will use $600,000 for the Attorney General's consumer protection fund.
Two West Virginia attorneys who donated to McGraw's 2008 political campaign - Teresa Toriseva of Wexler Toriseva Wallace LLP, Wheeling, and Guy R. Bucci of Bucci Bailey & Javins, Charleston - will share in the legal fees with attorneys George W. Sampson of Seattle and Jonathan W. Cuneo of Washington, D.C.
Toriseva, who donated $844 to McGraw, according to campaign finance reports, told Wilson any reduction in attorney fees would benefit MasterCard and Visa rather than the citizens damaged in the case.
Bucci donated $1,000 to McGraw.
Cohen has repeatedly questioned why McGraw hires outside attorneys to try cases - in particular those who have donated to his political campaigns - rather than use the legal staff in his office to handle litigation matters.
Earlier this year, Hughes said the attorney general's office does "not have the money or manpower" to try cases. She said the state Legislature does not provide a pool of money for a litigation fund and staff lawyers are busy doing the day-to-day work of the attorney general's office.
"It is very costly to litigate a case against multi-national corporations," she said.
Hughes said Sampson and Cuneo were used because of their experience in similar cases brought by several national chain retailers.
As for the contributions made by Toriseva and Bucci, Hughes said, "We do not check on campaign contributions before we assign attorneys. It is not a condition of their work. We have never had an allegation of anybody contributing for any special favors."
She said attorneys assigned to such cases are contracted with no guarantee of money.