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E N Q U I R E R   L O C A L   N E W S   C O V E R A G E
Wednesday, March 11, 1998
Visit with Chesley criticized
Lawyer linked to tobacco deal

BY PAUL BARTON
Enquirer Washington Bureau

chesley
Stanley M. Chesley
WASHINGTON - Citing pending tobacco legislation in Congress, the watchdog group Public Citizen on Tuesday harshly criticized President Clinton's visit to Stanley M. Chesley's fund-raiser.

''We think it is unfortunate and ill-timed that the president, who this week is making national tobacco legislation a front-burner issue in all his statements, would go to a fund-raising dinner sponsored by lawyers who will personally profit by the national tobacco deal that's being promoted by the tobacco companies,'' said Joan Mulhern, attorney for Public Citizen.

Mr. Chesley is a member of a committee of lawyers that represents millions of smokers who are not on Medicaid. The committee is part of a proposed settlement that gives tobacco companies legal protections in exchange for a payout of $368 billion over 25 years.

Mr. Chesley dismissed the criticism as ''garbage.''

Mr. Clinton has signaled willingness to accept a deal that grants some legal protections to the industry but has not provided specifics. He also has not taken a position on the question of fees for the plaintiffs lawyers, such as Mr. Chesley, who sued the industry.

Mr. Chesley said the event has nothing to do with the tobacco litigation.

White House spokesman Barry Toiv also dismissed the criticism. ''This is not about tobacco. This is the president coming to a fund-raiser for a friend who has been very supportive.''

Public Citizen opposes the tobacco settlement as a sweetheart deal for the industry.

Ms. Mulhern noted that Mr. Chesley has testified as recently as Friday before Congress in support of the settlement. Mr. Chesley said the protections provided to the industry are a good bargain in exchange for various public health initiatives that the industry will fund in return.

Public Citizen disagreed, noting especially the protections against future class-action suits and joint legal actions that the deal provides to tobacco companies.

''What the bill (tobacco settlement) does is take away every legal tool that has made litigation against the industry start to show progress,'' Ms. Mulhern said.

While the rights of individuals to bring suits would remain, ''it would make litigation so expensive that it would be impossible for individual litigants to pursue,'' she added.

Mr. Chesley, in testimony to a Senate committee Feb. 26, said the settlement makes it easier to pursue individual claims. He also said the industry agreed to pay $60 billion for health research in return for limits on punitive damages.

''In short, we got $60 billion we would never have won in punitive damages. The deal is worth it,'' Mr. Chesley told the committee. Mr. Chesley also testified that the settlement accomplishes more than could have been done in court.

''The settlement affords uniform benefits throughout the nation, and does things no court or the Congress, alone, could ever do, such as First Amendment advertising restrictions and the wholesale change in corporate culture.''

Under a negotiated settlement proposed in June, tobacco companies could not be forced to pay more than $5 billion a year to plaintiffs.

That deal, which would have to be ratified by Congress to take effect, would end 40 state lawsuits if the tobacco industry pays $368 billion over 25 years and agrees to steer advertising away from kids. In exchange, the tobacco industry would be immune from class-action lawsuits, which companies and farmers say would protect them from bankruptcy.

Tobacco litigators, such as Mr. Chesley, Ms. Mulhern said, are not on the same side as most Americans.

''Lawyers like Mr. Chesley have essentially taken the same position as the industry in regard to the national deal,'' Ms. Mulhern said.

At least three other lawyers connected with Mr. Chesley's tobacco litigation group were planning to attend the dinner. They include Charles Zimmerman of Phoenix and Maury Herman and Morton Katz of New Orleans.

Howard Wilkinson and the Washington Post contributed to this report.

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