Timing of Mississippi Wins in A.G. Litigation Not Helpful to Steve Simpson's Challenge of Jim Hood

Mississippi had two big wins recently in civil litigation headed by Attorney General Jim Hood.

Mississippi Recover $8.1 Million in Tobacco Litigation

A couple of weeks ago, Jackson County Chancery Judge Jaye Bradley ordered R.J. Reynolds to pay the State over $8.1 million based on the company under paying the State in money owed from the 1997 tobacco settlement. Here is the Clarion-Ledger article on the State's win.   

Can you believe it? A tobacco company lied about cigarettes. What's the world coming to?

 Meanwhile, General Hood's opponent in the November A.G. election criticizes Hood's use of out-of-state lawyers in A.G. litigation:

His opponent in this fall's election, Steve Simpson, has criticized Hood for selecting law firms to represent the state without independent oversight.

"If elected, I will ask the Legislature to establish a procedure to review the reasonableness of the contingency fees after an application by the law firm," Simpson said in a statement. "I believe that our law firms in Mississippi are some of the best in the country and will ask that these firms be given preferential treatment when outside counsel is required."

So who were these lawyers who Hood hired for the recent tobacco litigation? The Ledger reports:

The state's legal team was headed by Lee Young, who worked on the original tobacco settlement, Hood said.

So where is this “Lee Young” from? Oh, Pascagoula. Granted that's in Mississippi, but barely.

Assisting Young on the tobacco case were Matthew Mestayer of Biloxi and Charles Mikhail of Moss Point.

Mississippi Recovers $38 Million in Drug Litigation

Wednesday's Clarion-Ledger reports that the State is recovering $38 million from Sandoz, Inc. for inflating wholesale prices of prescription drugs:

Judge Thomas Zebert awarded Mississippi $23,661,618 in compensatory damages, $11,830,809 in punitive damages and $2,699,000 in penalties, for a total of $38,191,427.

In addition, the court entered an injunction on Sandoz reporting false average wholesale prices to Mississippi, the release stated.

"Sandoz, with its greed for more profits, caused Mississippi to overpay on drug prescriptions and some of our neediest citizens were being denied health care due to cost overruns," Hood said in the release.

Representing Mississippi in the drug litigation was Ronnie Musgrove (name sounds familiar) of the Copeland Cook law firm in Ridgeland. The only odd thing about that is that Copeland Cook is a large insurance defense firm.

My Take:

In a two week period Jim Hood recovered $46 million for the State. And he did it with Mississippi lawyers. This was probably not the best two weeks for the Simpson campaign. 

The problem that Republicans have in unseating Jim Hood is that Hood seems to be doing a credible job as A.G. I agree with Simpson that Mississippi lawyers should get preferential treatment when outside counsel is needed. But it's not like Hood only uses out-of-state lawyers. Mississippi lawyers are sprinkled in even on the cases where out-of-state lawyers are used. I just don't see Simpson getting much traction with this criticism of Hood.

Hood's Decision to Run for Re-election is Smart

On Friday Attorney General Jim Hood announced that he will run for re-election in 2011. As stated in the Clarion-Ledger’s article, the big news with Hood’s announcement is that it ends speculation that he will run for governor in 2011. Hood's decision is a smart one, even if Hood does want to run for governor.

Hood is only forty-seven and has plenty of time to run for governor. With the Hood being a Democrat and the Republican party currently dominating in Mississippi, now is not the time for Hood to give up the office he has for one that he may not win.

The Ledger article points out the commissioner of public safety Steve Simpson may run for A.G.:

Steve Simpson, the commissioner of public safety, said last year that he might run for attorney general in 2011. He could not immediately be reached Friday for comment.

Simpson would presumably run as a Republican. I suspect that Hood would easily beat Simpson. Simpson is from the Coast. Al Hopkins, who is also from the Coast, ran against Hood in the last election and lost. I don’t see Simpson gaining significantly more traction than Hopkins.

Hood promised to continue his good works as A.G.:

"My decision will allow me to continue our hunt for child pornographers and Internet predators; to protect our elderly citizens; and to shield our residents from corporate wrongdoers," Hood said.

Hopefully, Hood will increase prosecutions against nursing homes that abuse and neglect their elderly residents.

Meanwhile, Sunday’s Clarion-Ledger reported on the current state of the Mississippi Democratic party:

Democratic insiders paint a picture of a fractured and unorganized party divided by racial tension and lacking the necessary discipline, leadership and money to make an impact next year in statewide races.

The reasons for the poor Democratic showing in Mississippi are many and complicated. Republicans will probably dominate state-wide elections for many years to come. Jim Hood is the exception, and he may not be able to climb to a higher office than A.G.