State Auditor Pickering Denies Politically Motivated Lawsuit Against Attorney General Jim Hood Based on Politics

Former State Auditor and current Lieutenant Governor Phil Bryant’s (R) lawsuit that challenged the payment of attorney’s fees to lawyers who Attorney General Jim Hood (D) hired to sue MCI is clearly politically motivated. So naturally current Auditor Stacey Pickering (R) denied that the suit is politically motivated, as reported in the Clarion-Ledger on Saturday:

[Hood’s attorney Fred] Krutz said he thinks the auditor’s office waited two years to go after the attorneys fees because the case is politically motivated.

“It was always about politics,” he said.

Pickering denies that’s the case. “It is our belief that precedent is on our side,” he said. “Any money recovered would be public funds.”

Pickering is a politician. Most people assume that most acts by politicians are politically motivated. The odds that Bryant’s lawsuit against Hood was politically motivated are somewhere north of 99%.

The MCI case resulted in $100 million in cash and $7 million in property paid to Mississippi. Former Mississippi attorney Joey Langston’s law firm received a $14 million attorney’s fee in the case, which MCI paid.

Hinds County Circuit Court Judge Winston Kidd threw the case out last week finding that:

Since the subject attorney’s fees were not paid by the state and did not come out of any state funds, this Court finds that there is absolutely nothing improper or illegal about MCI’s payment of attorney’s fees to the Langston Law Firm,” Kidd’s ruling states.

I previously criticized aspects of Hood’s hiring outside counsel, particularly his hiring Texas lawyers who made a huge campaign contribution to Hood. But Hood is right in this case. The argument that a lawyer already hired and paid must give the fee back is thin. Even thinner is the argument that it’s the Legislature’s job to dole out the fee. The Legislature’s job is to pass laws—not administer attorney’s fees in a lawsuit.

If Bryant and Pickering do not like the system, then they should lobby the Legislature to change it—not file grandstanding lawsuits that cost the taxpayers money.

How much money? Both Hood and Pickering hired outside counsel in this case, who are paid by taxpayers—not MCI. Pickering’s lawyers alone cost the State $340,000 for a loss—with Pickering promising to take his gamesmanship to the Mississippi Supreme Court. The appeal will cost the State an additional six figures in attorney’s fees.

There is a big difference from the outside counsel fee in the MCI case and in Bryant/ Pickering’s lawsuit:

  • In the MCI case taxpayers paid nothing for outside counsel.
  • In the Bryant/ Pickering case taxpayers paid hundreds of thousands for outside counsel.
  • In the MCI case Mississippi won.
  • Bryant/ Pickering lost their case.
  • The MCI case made valid claims against a crooked corporation.
  • Bryant/ Pickering’s case made novel claims that lost.

In the MCI case, Hood hired a Mississippi law firm that recovered $107 million for Mississippi from a crooked corporation. Hats off to Jim Hood on this one. I’m sure that money has come in handy over the last view years given the State’s terrible budget crisis.

Pickering needs to stop the taxpayer bleeding and shut this lawsuit down.

Voters who are tired of the political gamesmanship need to remember this episode when Bryant runs for governor and Pickering runs for whatever he decides to run for next.

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