West Virginia Attorney General Patrick Morrisey Objects to Higher Attorney Fees in Opioid Settlement
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West Virginia Attorney General Patrick Morrisey raised objections Tuesday to higher attorney fees set in a recent near-billion-dollar opioid drug settlement case after an in-state lawsuit abuse organization blasted Morrisey for allowing the fee rates in the first place.
The Attorney General's Office filed objections in Kanawha County Circuit Court Monday to an order issued that same day by Lead Presiding Judge Alan Moat and Presiding Judge Derek Swope approving the common benefit fund commissioner's recommendations for more than $141 million in attorney fees in a recent major opioid settlement.
The recommendations -- made in a Sept. 21 filing by former Berkeley County Circuit Court judge Christopher Wilkes acting as the common benefit fund commissioner -- recommended that outside counsel receive 15% of the more than $940 million in settlement awards.
"I am troubled by the aggregate amount of attorneys' fees that will be paid from the settlements, which includes cities and counties," Morrisey said in a statement Tuesday. "It was my hope that the people of West Virginia would benefit from the money we were able to save by negotiating for lower fees.
The Attorney General's Office and a coalition of cities and counties secured more than $940 million in lawsuits against eight opioid manufacturers, distributors, and pharmacies: Johnson and Johnson, Teva, Walgreens, CVS, Kroger, Walmart, Allergan, Rite Aid.
Motley Rice, a national firm specializing in class action lawsuits, and the Webb Law Centre based in Charleston, were the outside counsel used by the Attorney General's Office. The Attorney General's Office negotiated a capped fee rate for outside counsel at 7.8%, but that cap does not apply to outside counsel for the cities and counties.
Haight argued that the 15% attorney fees also exceed outside counsel fees set in state code, which sets a decreasing percentage scale based on the increasing settlement amount. The scale allows a maximum of 5% in attorney fees for the any recovered settlement amount exceeding $25 million, or $50,000 per $1 million awarded. State Code also sets a $50 million cap on fees for any matter arising out of a single court case.
Haight said the court should consider setting a more conservative rate for attorney fees.
Outside counsel for the Attorney General's Office stands to earn more than $41 million from more than $92 million awarded to the Attorney General for attorney fees recommended by Wilkes. Another $51.2 million would be distributed to 20 other law firms representing cities and counties.
The Attorney General's Office argued that the total settlement award could go beyond $940 million to more than $1 billion once outstanding issues are worked out between companies and bankruptcy courts, sending the final attorney fees to more than $150 million when it is all said and done.
West Virginia Citizens for Lawsuit Abuse, a political organization that advocates for tort and judicial reform, criticized Morrisey at the end of September for not standing up against the recommended attorney fees.
"Giving $141 million to attorneys for their 'work' on this opioid lawsuit is absolutely outrageous," said Greg Thomas, spokesperson for West Virginia Citizens Against Lawsuit Abuse, in a statement Tuesday afternoon. "Much of these funds should have been given to the people affected by opioid abuse, not to out-of-state Democrat personal injury lawyers."
Thomas said he was pleased that Morrisey and the Attorney General's Office was objecting to the attorney fee recommendations, but questioned why it took 19 days to object and after the presiding judges of the Mass Litigation Panel approved the attorney fee recommendations.
"Attorney General Patrick Morrisey deserves credit for a very well-reasoned complaint that lays out a plan to ensure that the personal injury lawyers get paid for their work, but more money needs to get in the hands of the victims and their communities rather than out-of-state lawyers," Thomas said. "But yesterday, the Judges in charge of the case issued an order approving the $141 million in legal fees. The Judges' order was issued before Attorney General Morrisey filed his complaint."