AG seeks outside legal help in tobacco industry lawsuit

Monday, June 2, 1997 | 11:59 a.m.

Del Papa's turn to private attorneys to help Nevada recoup about $20 million in Medicaid coverage of ill smokers is rare. The last time the attorney general turned to a private law firm was in the early 1990s when she sought about $30 million in long-term Medicaid care.

But in the fight against the tobacco industry, reliance on liability lawyers is common. The 29 other states that have sued also are relying on private counsel, said Nevada Assistant Attorney General Brooke Nielsen.

"It makes more sense for a state to utilize a private firm," Nielsen said. "They hit the ground running. We're a small office and a small state. We're not in a position, resource-wise, to litigate this."

Other than the costs associated with assigning three staff attorneys to the case, Nevada doesn't expect to pay a penny in its pursuit of the tobacco companies.

Private attorneys will pay all costs and, if successful, will get a percentage of Nevada's winnings.

The size of the spoils for private attorneys has been dropping as bidding wars have broken out. Last summer, Arizona agreed to pay attorney Steve Berman of Seattle 18 percent of any winnings. By February, Indiana agreed to pay Berman a maximum of 13 1/2 percent.

Berman and two others have bid on Nevada. Each bid is made up of a consortium of law firms and the attorney general is expected to select one this week, Nielsen said.

State officials wouldn't release the proposed splits, but said the amounts were based on a sliding scale and ranged from 1 to 15 percent. One of the bidding groups - Richard Scruggs of Pasagoula, Miss., and Ronald Motley of Providence, R.I. - reportedly represent more than 15 states in the settlement talks.