$3.9 Million Divided By 4 Attorneys
Wilson rules on amount lawyers will make from antitrust lawsuitBy FRED CONNORS
Article Photos
WHEELING - Ohio County Circuit Judge Ronald Wilson on Monday decided four attorneys will share $3.9 million for their work on an antitrust lawsuit brought against Visa and MasterCard.
Two West Virginia attorneys - Teresa Toriseva of Wheeling and Guy R. Bucci of Charleston - will share the legal fees with attorneys George W. Sampson of Seattle and Jonathan W. Cuneo of Washington, D.C. All four were hired as special assistant attorneys general by West Virginia Attorney General Darrel McGraw.
Wilson's ruling came as a final measure of an $11.6 million settlement against Visa USA Inc. and MasterCard International Corp. The lawsuit claimed the credit card companies price-fixed fees, forced merchants to accept debit as well as credit cards for payment and committed other deceptive practices.
At an Aug. 20 hearing, Wilson said he would issue an order within 30 days that would determine how the lawyers would split $3.9 million in legal fees. He later said he would need more time to prepare an opinion because the case was more complex than he had imagined.
In Monday's ruling, Wilson said the law firm of Hagens, Berman, Sobol, Shapiro LLP will allocate the fees to the attorneys. The order did not include dollar amounts to the individual attorneys nor did it include an amount that Hagens, Berman, Sobol, Shapiro LLP would be paid for its work.
The original settlement spelled out that Visa was to pay up to $3 million toward the lawyer fees, while MasterCard was to pay up to $900,000 in fees. Wilson's ruling reflected the maximum amount allowed by the agreement.
Wilson also ruled the attorneys "took great risk in the prosecution of this case, devoting a substantial amount of time and expense without any guarantee of compensation and that this case presented highly complex questions of law and fact, requiring attorneys with extensive skill and experience in complex litigation.
"The court further finds that the results obtained are excellent, in that the counsel have obtained substantial recovery for a large number of West Virginians despite vigorous defenses raised by the defendants," he ruled. "Plaintiffs have submitted evidence of costs incurred in prosecuting this litigation in the amount of $231,561.30. The court finds these expenditures were reasonable and necessary and should be reimbursed from the $3.9 million attorney fee pledged for court consideration in this matter."
Also coming out of the $3.9 million will be $143,185.79 to attorney Barry Hill as payment for his work and expenses during the litigation.
Wilson's order states payment shall be made to the attorneys within 15 days.
Throughout the lawsuit period, Steve Cohen, executive director of West Virginia Citizens Against Lawsuit Abuse, has repeatedly questioned why McGraw hires outside attorneys to try cases - particularly attorneys who have donated to his political campaigns - rather than use the legal staff in his office to handle litigation.
Cohen also wanted the assistant attorneys general to submit itemized documentation of all work performed and all expenses incurred.
Wilson's order states, "All attorneys are not equal. Not every attorney in West Virginia was qualified to be appointed to represent the attorney general in this lawsuit."
Wilson also pointed out that Cohen had an career that many would envy but added, "Mr. Cohen is not a lawyer. Although he may have a few good ideas, he could not offer helpful legal arguments. He apparently does not understand that judges are not omnipotent and that they exercise judgment but not will and cannot just do what they want to do when faced with legal issues. Most of his recommendations had to be rejected outright and, to the extent that I had the authority to act upon some, I ultimately found his requests to be without merit.
"In truth, and probably because he is employed by an organization that seems entirely too partisan with addressing any issue involving plaintiffs' lawyers, his bias towards the attorney general is so visible that it clouds his effort to deploy persuasive reasoning," Wilson continued. "It's too bad Mr. Cohen's organization is so mean-spirited in its criticism of our legal system and its lawyers and judges, because it renders the nature of those claims more like an antagonistic ideology rather than a rational and substantive critique."
In response to Wilson's ruling, Cohen said, "We commend Judge Wilson for raising the yellow flag when Darrell McGraw's campaign contributors had their hand out for millions of dollars in public funds. Ultimately, though, the system remains broken when there is no accountability for the work performed. The attorney general's seemingly pay-to-play deals cry out for reform."
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EllisWyatt
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12-30-08 9:47 PM
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Apparently, Judge Wilson acknowledged what we all know to be the truth: government lawyers are employed as such because they could not find a decent job in the private sector. What did the credit card companies do that warranted nearly $12 million in fines? They said "if you want to use our service, you have to adhere to our standards". God forbid a corporation should have control over its' own affairs! West Virginia-Open For Business Destruction.
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theRev
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12-30-08 7:04 PM
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how much of that money do you think is donated to the AGs and judges election campaigns?
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alfred
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12-30-08 5:00 PM
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How can you tell when a lawyer is not charging you too much money for their services.??? "WHEN THEIR HANDS ARE IN THEIR POCKETS"!!!
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TruthSeeker
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12-30-08 2:13 PM
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One last thing and I'll post no more on this... RealityPolice aka Male Chauvinist Piggy: Don't call me "sweetness".
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TruthSeeker
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12-30-08 1:55 PM
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RealityPolice said: "And I HAVE called the AG's office regarding a fraud against business in West Virginia - and was told by an AG representative in your office: "SORRY - we ONLY help consumers - NOT BUSINESSES." EXPLAIN THAT ONE. Do you or don't you, help businesses who are victims of fraud?" For businesses that are victims of fraud, there is our fine judicial system to turn to. The AG's office was never intended to provide legal assistance for the business community and is not mandated to do so under WV state law.
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TruthSeeker
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12-30-08 1:50 PM
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RealtyPolice said, "SO ARE THESE STATEMENTS FALSE???" Yes, those are false.
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TruthSeeker
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12-30-08 1:45 PM
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I have a list of the worst states too and it holds as much water as the ones y'all have named. Forbes' rankings measured states on six main areas of importance: business costs, labor supply, regulatory environment, current economic climate, growth prospects and quality of life. Business costs were given the most weight. Forbes studied business costs (cost of labor, energy, and taxes), labor issues (educational attainment, net migration, and projected population growth), regulatory climate (regulatory and tort environment, incentives, and bond ratings), economic climate (job, income, and gross state product growth, as well as unemployment and corporate headquarter relocations), growth prospects (projected job, income, and gross state product growth, as well as announced business openings and closings), and quality of life (index of schools, health, crime, cost of living, and poverty rates). So as you can see, it wasn't just the judicial climate that made WV dead last.
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TheRealityPolice
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12-30-08 1:38 PM
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And I HAVE called the AG's office regarding a fraud against business in West Virginia - and was told by an AG representative in your office: "SORRY - we ONLY help consumers - NOT BUSINESSES." EXPLAIN THAT ONE. Do you or don't you, help businesses who are victims of fraud?
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TheRealityPolice
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12-30-08 1:35 PM
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Oh also a response to your statement, sweetness: ". WHY? Because the businesses that were overcharged simply passed the egregious fees on to the consumer so in the end the consumer was the one hurt, not the business." You DO realize that it is against CC Merchant agreements to pass along fees to consumers for using a CC? So those of us LEGIT MERCHANTS who do not do that are still screwed, right?
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TheRealityPolice
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12-30-08 1:33 PM
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ONCE MORE: Where is the money for the state's merchants? You seem to be dodging my question on that issue, hon.
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TheRealityPolice
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12-30-08 1:29 PM
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Hey Fran: How about the list from FORBES Magazine last year??? "WV makes move in Forbes business ranking — from 49th to 50th! Forbes Magazine has issued its new rankings of the best states to do business, and West Virginia has indeed made a move in the standings — from next to last to dead last! In spite of a lot of happy talk recently from local public officials, things have apparently only gotten worse !" So I assume that FORBES is a non-credible publication?
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TheRealityPolice
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12-30-08 1:28 PM
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"West Virginia reclaims the #1 ranking this year for its near perfect storm of anti-business rulings, massive lawsuits and cozy relationships between the personal injury bar, the state attorney general and some in the judiciary. The state's highest court has a history of plaintiff-biased decisions, paying damages to those who are not injured, allowing mass trials, permitting lawsuits outside the workers' compensation system, rejecting long-established legal principles, and welcoming plaintiffs' lawyers from other states to take advantage of its generous rulings." SO ARE THESE STATEMENTS FALSE???
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TruthSeeker
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12-30-08 1:25 PM
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RealityPolice said, "Do you think McGraw will "refund" the businesses of WV any of these "overcharged merchant fees"? COME ON - tell the TRUTH!" The TRUTH is that you don't know much about this case. It was never about refunding the businesses the money. WHY? Because the businesses that were overcharged simply passed the egregious fees on to the consumer so in the end the consumer was the one hurt, not the business. You should look up the complaint and the decision before assuming the outcome has no merit or that McGraw is somehow cheating businesses. Similar lawsuits against Visa and MC have been litigated previously and either settled or won by the plaintiff in other states. They weren't found innocent of those charges either but this is the first award for the consumer who actually footed the expense of the fees.
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TruthSeeker
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12-30-08 1:04 PM
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RE: Mark Plants. Plants is a former WVU football player and a neocon. Said when he was sworn in that he was going to bring those lessons learned on the field to the Kanawha prosecutors office. I'm sure that will work out well for him as we all know in the legal system you have to have a plan...you can't just punt. Plant's whole platform for the office was getting computerized records, being pro-life, and not being liberal. He won because he is a former WVU football player, not because he was the best candidate for the office. Regarding tort reform, just because the American Tort Reform Foundation and the Republican party call WV a judicial hellhole, doesn't make it one. It is among the best, as is McGraw, in consumer advocacy and consumer protection. BTW -- After passing all that tort reform in reference to the medical profession, has anyone noticed that doctors lowered their fees or that health care premiums or costs have gone down? Yeah...didn't think so.
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TheRealityPolice
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12-30-08 12:47 PM
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TruthSeeker: Do you think McGraw will "refund" the businesses of WV any of these "overcharged merchant fees"? COME ON - tell the TRUTH! BTW - he doesn't police those who do business with the businesses in the state. Don't you get it??? If you are a business, you cannot get help from the AG - not matter who is committing the fraud! Even if it is a company defrauding businesses - McGraw's office say, "Sorry - we only help CONSUMERS." Hmmm - is a business NOT a consumer in some transactions? Give me some answers here.
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TruthSeeker
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12-30-08 12:33 PM
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There is nothing wrong with the AG pursuing those who break the law and there is nothing wrong with hiring private attorneys to make the cases pursued stronger. McGraw would be derelict in his duties if he half-***ed the duties of his job as part of his job is to police those who do business with ANY resident or business in the state. For you Republicans, even the the US Chamber of Commerce (those tort reform fiends) has advocated in their proposed attorney general code of conduct that hiring outside counsel is appropriate under the right set of circumstances. One of the biggest reasons businesses won't come to WV is not her legal climate. It's her high taxes on business. Don't just believe the Republican neocon talking points or me. Look it up.
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SphinxRising58
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12-30-08 12:08 PM
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TruthSeeker: You are missing the point, as it does not matter how much it costs to become or remain a laywer. The point is McGraw & his staff was elected to preform a duty for the people, but instead gave their elected resposability away to buddies who in a snese paid him, which most would call a bribe, BTW. We did not elect them laywers who won the case, or who will be getting paid, & the ones we did elect are sitting around in airconditioned offices doing littel to nothing while they whine about how they are " too busy with other cases ". Maybe they shouold have thought about all that before they ran for office or made all them political promises they clearly have not kept.
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Consumer4Justice
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12-30-08 11:36 AM
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Good point! Also worth noting that West Virginia consumers don't receive a dime of this settlement unless they actually purchase designated Energy Star appliances during one of the scheduled "sales tax holidays." Thank you Attorney General McGraw for saving the citizens of West Virginia $90 on $1,500 washing machines!
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TheRealityPolice
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12-30-08 11:28 AM
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When I see McGraw's office contacting businesses regarding this settlement to determine payments TO BUSINESSES, then I will EAT MY WORDS. But I guarantee you I will NOT. It will never happen.
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TheRealityPolice
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12-30-08 11:25 AM
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"The lawsuit claimed the credit card companies...forced merchants to accept debit as well as credit cards for payment and committed other deceptive practices." NOW - how much do you want to bet that McGraw's office won't give a DIME to merchants? THEY DO NOT CARE ABOUT BUSINESSES IN WEST VIRGINIA!!!! If the Merchants were the ones getting the shaft from the CC companies, then where are the payments to the MERCHANTS??? Try calling the AG's office re: fraud if you are a business - they tell you right away they cannot help you. So why did they even bother with this? OH wait - so McGraw and bunch of crony attorneys could COLLECT!
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whg26003man
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12-30-08 11:05 AM
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Mechanics charge $60-70 an hour for labor. Doctors/Therapists charge $200 an hour for sessions. $200-300 an hour for a lawyer is not outrageous. As Judge Wilson stated not every lawyer is equal. Those capable of class action suits are not going to take low paying jobs with the AGs office. Without them, maybe WV would have gotten nothing at all. The money doesn't come out of the settlement. I believe they were ordered to pay the attorney fees in addition to the settlement. How long did the case take? I am assuming well over one year. Attorneys have expenses as well in running an office (secretary/assistant salaries, rent, bills, etc.) and if the case was that large it was probably one of only a few the lawyers were handling. Truth Seeker is right tort reform was not needed, insurance reform is. Nobody's rates have gone down since "tort reform" took effect.
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Consumer4Justice
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12-30-08 10:41 AM
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Hughes has previously criticized CALA as "being little more than a lobbying front for big business - which often finds itself the target of McGraw's lawsuits." If Truth Seeker isn't Fran Hughes, then Truth is certainly working from Fran's talking points. The "go **** a doorknob" comment is a persuasive argument, in line with other outbursts Fran has directed at Cohen. The real point to be made is that these attorneys are being paid nearly $4 million despite the fact that they never provided an accounting of the number of hours they worked. I guess Truth Seeker believes there's no need for accountability because law school is expensive?
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wonderwhy
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12-30-08 9:43 AM
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maybe truth was just quoting her since it's been in the media?
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WVConservative
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12-30-08 9:39 AM
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Fran Hughes is the Deputy Attorney General who essentially runs the office since Darrell McGraw is barely coherent. Fran is using the name "Truth Seeker" in this comments section. It is obviously her because the statement she made about Steve Cohen is exactly what she has said in every media interview she has done over the last 24 months.
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wonderwhy
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12-30-08 9:21 AM
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who's fran?
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