Today, Republican Governor Phil Bryant signed into law restrictions on the state’s use of outside, contingency fee lawyers.  The “sunshine” law would require all outside counsel representing the state to keep detailed time and expense records and limit contingency fee lawyers to a total fee of $50 million.

The law imposes hourly rates not exceed “recognized bar rates” (whatever that means).  The bill imposes strict limits on contingency fee awards.  Attorney fees are limited to 25% of a $10 million recovery, 20% for amounts between $10 million and $15 million, and only 5% for amounts over $25 million with a cap of $50 million.  The state will also establish an Outside Counsel Oversight Commission to review contingency fee contacts and require those contracts to be posted on the AG’s website.

Mississippi Attorney General Jim Hood’s office is considering challenging the constitutionality of the new law in court.  In a statement (pdf) Hood’s office projects the bill will cost the State about $11 million a year because the average private lawyer is paid $145 per hour and the AG only charges $65 per hour for the same services and that difference will be paid for by Mississippi taxpayers. The current system works. Over the past 7 years Jim Hood’s office has recovered over $500 billion for the taxpayers of the state and it did not cost the taxpayers a single dime. In addition, the law of the state already allows state agencies to file suit should the attorney general decline, or file suit even if the attorney general opposes such.

“Mississippi Attorney General Jim Hood is one of the most successful attorneys general in U.S. history. He was one of the first AGs to bring a suit against the tobacco companies. Throughout his career, he has taken on powerful industries such as insurance companies, big tobacco, and drug companies. Hood has tallied up record settlements against a host of corporate wrongdoers including Entergy, State Farm, MCI/World Com, and BP, thus securing hundreds of millions of dollars for Mississippians,” said Terry Jesse, Executive Director of NALFA.