Seattle attorneys to take on tobacco for AG

Thursday, Aug. 21, 1997 | 9:07 a.m.

CARSON CITY -- A Seattle law firm has been hired by Attorney General Frankie Sue Del Papa to help in the state's suit against the tobacco industry.

Steve Berman of Hagens & Berman already represents nine other governments in their suits against the cigarette companies. He was one of only three private attorneys at the negotiating table in the talks for a settlement with the tobacco companies.

Assistant Attorney General Brooke Nielsen said the settlement negotiated with the cigarette companies could mean as much as $20 million a year for the state over a period of more than 20 years.

But she said Congress must approve the settlement. And if there is a hitch, Berman must be ready to proceed with the 127-page complaint filed in Las Vegas against 19 tobacco companies and affiliates.

"This case is extremely complex and requires enormous resources to litigate," Del Papa said. Every state, she said, has hired private counsel.

The contract with Berman, approved Wednesday by the state Board of Examiners, calls for a graduated payment schedule, based on how soon the case is closed. If it is resolved within 90 days, the Berman team will receive an hourly rate of between $175 and $250 or $100,000, whichever is greater.

If the resolution comes after 90 days but before a year is out, the Berman team will receive 10 percent of any award to the state. If the case is settled in the following year without going to trial, Berman will receive 12 percent of any award. And if the case goes to trial, he will get a 15 percent contingency fee.

Berman will advance all litigation costs. Nielsen said that the tobacco companies may eventually have to foot the bill for the legal costs under the settlement.

Del Papa said the Berman firm presented the best fee proposal to the state.

In addition to Berman, the law firms who will work with the attorney general's staff to prosecute the suit include the Barrett Law Offices, of Lexington, Miss.; Robert B. Carey of Colorado Springs, Colo.; Freeborn & Peters of Chicago, and Steven Mitchell of Phoenix.