Presidential Pipeline: No rewards for donors on Kerry-Edwards side
Last of three parts
Tuesday, December 20, 2005
By Christopher D. Kirkpatrick and Mike Wilkinson, The Toledo Blade
Three-and-a-half months after Hurricane Katrina, the water in New Orleans has receded. And trial lawyer Calvin Fayard, a top fund-raiser for Sen. John F. Kerry's presidential bid last year, sees the city coming back to life.
Presidential Pipeline
Jerry Ward, special to The Blade
Calvin Fayard, a lawyer and big Democratic fund raiser in the 2004 presidential campaign, poses outside his Victorian mansion on St. Charles Avenue in New orleans' French Quarter. He and other supporters of Sen. John F. Kerry's presidential effort say they're feeling the sting a defeat.
Click photo for larger image.
The Series
Day One: An overview: Bush's top fund-raisers see spoils of victory
Day Two: The Bush fundraising network had its roots in Texas and Florida
Today: No rewards for donors on the Kerry-Edwards side
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Mr. Fayard, whose family has been active in state politics for years, has been through the turmoil and sees the flood tragedy as yet another front in the battle with the Bush administration over tort reform -- a battle he and the Trial Lawyers of America say would have been moot under a Kerry administration.
The Kerry-Edwards campaign praised Mr. Fayard as a fund-raising superstar, rounding up at least $50,000 for the campaign. But it wasn't enough for victory, and now he and his brethren, and other pro-Kerry interests, are feeling the sting of defeat.
"I agree that each party tries to maintain the best for its constituent base, and it all goes back to the platform of the party. With Democrats, it's policies that are more to the lawyer end," Mr. Fayard said. "I thought John Kerry was the best man for the job."
For trial lawyers, laws enacted in these past six Bush years, and other GOP-sponsored proposals, squarely target their profession. Hospitals, nursing home chains, and insurance companies have spent millions lobbying elected officials and the public for tort reform, painting trial lawyers as the reason for increased insurance premiums and as a danger to the health care system.
"The other side has spent decades and billions of dollars to get the public to believe a story that isn't true, but they've told the story [about trial lawyers] for a reason and the efforts have been funded by tobacco and big corporations. Those are the Bush supporters," said Chris Mather, spokesman for the Association of Trial Lawyers of America.
Tort reform partly explains why 152 (or 27 percent) of Mr. Kerry's 563 top fund-raisers, dubbed "Vice Chairs" and "Chairs," are listed as lawyers. They raised at least $50,000 each for the Kerry-Edwards campaign. Mr. Kerry's running mate, former U.S. Sen. John Edwards, was himself a millionaire contingency-fee trial lawyer by trade.
The number contrasts to the 32 lawyers (or 6 percent) on Bush's list of 548 "Pioneers" and "Rangers," those who raised at least $100,000 for his re-election campaign.
The American Tort Reform Association supports measures that would cap jury awards, arguing that insurance companies have to know their liabilities so they can accurately set premiums, said Gretchen Schaefer, spokesman for the organization.
"There's nothing that's been proposed that would hurt anyone's right to a fair trial," she said. "There's a huge access to health care issue [in this country]."
The group created a Web site to track the support coming from trial lawyers to the Edwards campaign for president, which he eventually abandoned to become Mr. Kerry's running mate.
"They would have passed a pro-litigation, anti-business agenda," Ms. Schaefer said of a successful Edwards ticket.
Over his six years in office, Mr. Bush has championed measures that would shield certain corporations from lawsuits. Several of the proposals resulted from Hurricane Katrina and the looming threat of a bird flu pandemic. They include:
The HEALTH Act of 2003, which stands for Help Efficient, Accessible, Low Cost, Timely Health care. It passed the U.S. House last year. The bill, supported by the president, would cap some pain-and- suffering jury awards at $250,000. The legislation would provide a sliding scale for lawyers' fees.
Legislation that would require successful lawsuits against drug makers of bird flu vaccines to prove the higher standard of "willful misconduct" and not just negligence.
The Protection of Lawful Commerce in Arms Act, which provides gun makers immunity, in most cases, from lawsuits holding them responsible for gun violence. Mr. Bush signed the bill in October.
The Asbestos Trust Fund bill, sponsored by U.S. Sen. Orrin Hatch, R-Utah, would create a fund to reimburse those suffering from exposure to asbestos and halt litigation. Lawyers and organized labor oppose the move, saying the fund would not have enough money.
The Class Action Fairness Act of 2005, which was signed by Mr. Bush in February. It moves most class action suits to federal court. Its legislative sponsors say the bill was designed to prevent outrageous legal fees that sap awards for plaintiffs . Lawyers argue that federal court is costly and that most class actions involve state issues.
Mr. Fayard said his real concern is about fairness and the sanctity of the legal process.
Corporations, who often pay hourly legal fees, can afford such delays, but some plaintiffs and their lawyers, who work on a contingency-fee basis, cannot, he said.
"There are always two sides to an issue. If one side has an advantage by paying more fees up front on a regular basis and the other side cannot go out and hire competent counsel, then it sometimes dictates the result," he said. "We are in an adversarial position. We shake hands, but some side is going to win and some side is going to lose."
Tort reform, from a public relations standpoint, helped frame the 2004 presidential campaign. Though not as large an issue financially as others such as health care coverage, it came to symbolize for Democrats the battle of working class versus moneyed corporate executives. For Republicans, it became a canvass for painting trial lawyers and unions as greedy, causing insurance premiums and health care costs to rise.
Trial lawyers and union officials often cited the issue and came out for Mr. Kerry. Mr. Edwards, his running mate, portrayed his past legal work, which provided him with tens of millions in fees, as protecting the defenseless against corporate misdeeds.
Support for Mr. Kerry and for all Democratic federal candidates, in pure dollars, came in large measure from unions and lawyers/lobbyists. Unions represent a political sector lobbying for sweeping policy changes, such as universal health care programs and increases in the minimum wage. In his campaign, Mr. Kerry proposed increasing the wage by 36 percent from $5.15 to $7 an hour.
Under the Bush administration, the proposal has not moved, and Mr. Bush's centerpiece economic legislation, the American Jobs Creation Act of 2004, has been criticized from the left as a pro-business tax giveaway, including a tax deduction for manufacturers and corporate tax breaks totalling $145 billion.
In the 2004 campaign cycle, labor gave $53.6 million or 87 percent of its federal contributions to Democrats, and about 13 percent to GOP candidates. Lawyers and lobbyists gave $135.2 million or 74 percent to Democrats and $45.8 million or 25 percent to Republicans at the federal level.
What upsets some conservative activists is how labor can generate some of its campaign cash through union dues. The National Right to Work Legal Defense Foundation has fought to make sure employees aren't forced to pay into union political campaigns.
Unlike a Bush Pioneer who cuts his check himself, many union workers make their contributions through dues. The union then decides who and what to endorse.
"Union officials take money from dissenting employees and give it to partisan causes they may disagree with," said Justin Hakes, spokesman for the foundation.
The president's cadre of Pioneers and Rangers is populated with automobile and health care executives.
The trial lawyers are not alone in feeling put -upon by a Bush victory. Some industries, such as entertainment, fear censorship from the right. They are traditionally at odds with the GOP, though not always, over violence in films.
Rob Friedman, vice chairman of Viacom-owned Paramount Pictures, raised enough money to be on Mr. Kerry's list of top fund-raisers. A slew of actors raised money for Mr. Kerry.
During Mr. Bush's tenure, CBS Entertainment, owned by Viacom, came under fire for Janet Jackson's so-called "wardrobe malfunction" that exposed her right breast at the 2003 Superbowl halftime show broadcast on network television. The Federal Communications Commission leveled a record $550,000 fine.
Under Mr. Bush, Paramount and other movie companies faced increased taxes because of the president's American Jobs Creation Act of 2004.
U.S. Sen. Dianne Feinstein, D.-Calif., objected to a part of the draft bill that would have forced Hollywood to change to a "unified accounting system," adding a $5 billion tax burden over 10 years. The bill, originally meant to bring U.S. international tax law in line with World Trade Organization rules, was criticized by Democrats as a bevy of corporate tax breaks. It gives NASCAR track owners tax breaks for improvements and temporarily suspended tariffs for Home Depot on imported Chinese ceiling fans, among other initiatives.
"This is especially egregious given the fact that film industry was not even involved in the unfair trade practices that led the WTO to declare that U.S. international tax rules were unfair," she wrote in a letter to President Bush. The bill was amended.
Hollywood usually offers Democrats support. But larger media, outside of film, often are cagier about support.
More high-powered media executives than usual came out in support of the Democratic presidential candidate last year, perhaps to dampen former Verment Gov. Howard Dean's chances, industry and political analysts said. Mr. Dean, who is now chairman of the Democratic National Committee, said during his unsuccessful presidential bid that he might try and break up major media conglomerates.
Media executives, including brass from Time Warner and Viacom, were Kerry Chairs and Vice Chairs. Former Time Warner Vice Chairman Ken Novack and DreamWorks' Jeffrey Katzenberg and his wife Marilyn were on Kerry's list of top campaign bundlers.
Entertainment heavyweights on the list included Jonathan Dolgen, the now-former chairman of Viacom Entertainment Group, Nancy Tellem, president of CBS Entertainment, and James Gianopulis and Tom Rothman, co-chairmen of Fox Filmed Entertainment.
Sumner Redstone, the head of Viacom, gave money early to Mr. Kerry's campaign. But he caused controversy when he endorsed the president.
"I look at the election from what's good for Viacom. I vote for what's good for Viacom. I vote, today, Viacom," he was reported as saying in Beijing, China, at a CEO conference.
In New Orleans, Mr. Fayard has been untouched by the election professionally, he said. His work focuses on railroad companies and are national. But a couple of days after the hurricane, he met New Orleans' refugees in Baton Rouge. He learned of their insurance plight.
The lawyer and several colleagues, free of charge, asked a court to rule "that the high water in Orleans and Jefferson Parish, which flooded thousands of homes, is caused by a man made neglect and wind damage rather than so called 'Act of God.' "
With such a definition, insurance companies would have to pay claims. The case is pending. The New Orleans flooding resulted from errors in engineering and federal policy, he said.
"That was a man-made flood." |
