Loftis' friend gets upto $3M in state work
COLUMBIA (AP) - A fraternity brother and personal attorney of South Carolina Treasurer Curtis Loftis stands to make $3 million in fees working on a lawsuit for Loftis' department, a deal the state's top lawyer approved despite the close ties.
Attorney General Alan Wilson said Loftis didn't initially disclose details of his longtime relationship with lawyer Mike Montgomery. When Wilson learned of them later, he signed off on Montgomery's involvement because he believed it wouldn't affect taxpayers.
Loftis said he told Wilson about his connection to Montgomery from the start and "did everything to say, you know, 'This is my guy,'" when he sought clearance from Wilson.
"We don't hire enemies to do stuff for us," Loftis said.
Regardless, Wilson sees no harm in the arrangement and said such connections are common in South Carolina's relatively small legal community.
Montgomery's engagement in a contingency fee case, in which lawyers get paid a percentage of whatever their client wins, does not violate any laws. But when The Associated Press described details of the arrangement, legal experts and government watchdogs said it raises questions about how the state distributes legal work and the role relationships may play in deciding who gets to spin the wheel on contingency fee contracts. Other states have moved to systems requiring more vetting.
"It smacks of political patronage," said Gerald Finkel, a Charleston School of Law professor and past president of the South Carolina Trial Lawyers Association, now called the South Carolina Association for Justice.
Contingency arrangements and hiring outside lawyers have been top issues for the American Tort Reform Association for years. The group has pressed states' attorneys general to pledge to be more open in how they award that lucrative work. The arrangements are rare in South Carolina - just six contingency fee contract lawsuits have won approval since 2008 - and they leave unanswered questions about how taxpayers can be sure the best qualified lawyers are handling their interests.
Mark Mckinney Charleston Sc - News
"It smacks of political patronage," said Gerald Finkel, a Charleston School of Law professor and past president of the South Carolina Trial Lawyers Association, now called the South Carolina Association for Justice. Contingency arrangements and hiring
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