A recent GreenwichTime.com story, “Lawyer Fees Case Before Miss. Supreme Court” reports that Mississippi State Auditor Stacy Pickering (R) has asked the Mississippi Supreme Court to declare attorney fees and expenses the attorney general collects from lawsuits to all be turned over to the state legislature, including what private law firms collect for their work. Attorney Arthur Jernigan Jr. told the court that Pickering has no dispute with Mississippi Attorney General Jim Hood’s (D) hiring of private lawyers to represent Mississippi in lawsuits. Jernigan said the dispute centers on legal fees that firms collect; he contends the money should go to the state.
Pickering is also appealing a second lawsuit over attorney fees. In this one, Pickering is appealing a judge’s decision last year upholding $10 million in attorney fees paid to lawyers for representing the state in a lawsuit against Microsoft. Microsoft is not a party to Pickering’s suit. Microsoft reached a $100 million settlement with the state of Mississippi in 2009. Part of the settlement included $10 million in attorney fees for the work of private lawyers hired by the attorney general’s office to handle the litigation. The Microsoft settlement was approved by Hinds County Chancellor Denise Owens. Pickering sued arguing the legal fees should be paid with money appropriated by the state legislature.
Earlier this month, the Mississippi Supreme Court heard arguments in a similar case involving a group of lawyers awarded $14 million for their work to collect more than $100 million from MCI. The MCI settlement was upheld by Hinds County Circuit Judge Winston Kidd. In both cases, Pickering is attacking a state law that allows the attorney general to hire outside lawyers when the state does not have the expertise, resources, or manpower to pursue a case. Pickering contends the funds received by the outside attorneys are public money.
“The state of Mississippi should collect all the money and then disperse the money to the attorneys,” Jernigan said. “The attorney general should request an appropriation from the Legislature for the fees. Assistant Attorney General Harold Pizzetta said “There is no question the state got 100 percent of its settlement. The attorneys’ fees were separate.” State law allows the attorney general to hire outside lawyers. Those lawyers receive no funds from the state. Asked why Pickering doesn’t go to the Legislature and have the law changed, Pickering gave no answer.
CLICK HERE to view the contract between the Mississippi Attorney General and outside counsel in the Microsoft case.