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OCR Page 1 of 37Tob SCT atterneys feed
TOBACCO- LEGAL FEES LEGAL FEES
Bruce-
FYI. The Tustice
Department's proposal
Elena
ATTORNEYS' FEES--HOURLY CAP PROPOSAL
FINDING: This historic legislation is the product of efforts undertaken by the
federal government, as well as state governments, the public health community,
and other private parties. Private attorneys have battled the tobacco industry
through litigation on behalf of the states and have also played a significant role in
fostering the enactment of this legislation. Congress recognizes that this legislation
and creation of a federal trust has an impact on pending litigation and might affect
the prospect of compensation for these attorneys. Thus, Congress finds that a
need exists to create a system that provides just and fair compensation to attorneys
who may be affected by the legislation, but that does not ignore the efforts of
others by bestowing an unconscionable windfall on some attorneys.
(a) SOURCE AND PAYMENT OF AWARDS.--Manufacturers [who elect to
enter the protocol described in section
] [who elect to assume various burdens
in exchange for liability protection] shall be responsible for the payment of all
attorneys' fees and expenses under this section. In no event shall any award be
paid from, credited against, or otherwise affect in any way any fee payments that
are required to be made by any participating manufacturer under section
or
under any other provision of this Act. Any such award shall be paid by
participating manufacturers pursuant to an allocation agreement among such
Dues this releat
manufacturers. In no circumstance whatsoever should the federal government be
medicaid admin costs?
liable for the payment of any attorneys' fees or expenses, and there shall be no
remedy against the government for payment of damages on any claim related to
this act..
(b) GENERAL LIMITATION.--Notwithstanding any other provision of law, any
attorneys' fees paid in connection with the settlement of an action maintained by a
State against 1 or more tobacco companies to recover tobacco-related Medicaid
expenditures or for other causes of action involved in the tobacco settlement
agreement, shall [generally not exceed $250 per hour, excluding any
reimbursement of actual out-of-pocket expenses as approved by the arbitration
panel established in section (c)] [be a reasonable fee. A reasonable fee shall be
established by multiplying a reasonable hourly rate by the number of hours
reasonably expended on the matter. Reimbursement of actual out-of-pocket
expenses shall be allowed in addition to the reasonable fee].
(c) ARBITRATION PANEL.
(1) ESTABLISHMENT- For the purpose of awarding of attorneys' fees and
expenses relating to litigation affected by, or legal services that arguably resulted in
whole or in part in, this Act, there is established an Arbitration Panel which shall
consist of 5 members to be appointed by the Attorney General, after consulting
with
(A) the manufacturers;
Relations
belongs_to