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House approves $9.95 million settlement over tobacco attorney‑fee dispute after hours of debate
Summary
After extended floor debate over attorney fees and the public purpose for tobacco settlement proceeds, the House voted to approve a negotiated settlement to resolve fee claims tied to the state’s tobacco litigation (SJR 102). Supporters cited exposure to larger liability; opponents criticized paying additional millions out of settlement proceeds. Vote: 49–22.
The House debated and approved SJR 102, a resolution to settle an attorney‑fee dispute tied to Utah’s participation in the national tobacco settlement. Representative Swallow presented the resolution, summarizing the background that Utah’s portion of the Master Settlement was estimated at about $1 billion payable over roughly 25 years and outlining a negotiated offer from counsel to resolve outstanding claims against the state.
Representative Swallow told members the law firm had offered to take $9,950,000 to settle the state portion of the dispute. He and several supporters argued the Legislature faced contingent exposure under the contingency fee agreement and that settlement would free up other tobacco funds for legislative use.
Many members spoke at length in opposition, citing professional ethical rules about excessive attorney fees and questioning whether the state should pay another nearly $10 million when the firm had already received substantial amounts. Representative Daniels and Representative Arendt argued the matter could (and should) be litigated or further scrutinized by jury or court, asserting that attorneys’‑fee contracts are subject to judicial review for excessiveness.
Supporters, including Representative Urquhart and others, urged pragmatic risk management: a jury could award the contract amount or something less, but the state’s exposure could be far greater than the negotiated sum. After a motion to cut off debate passed, sponsors summarized briefly and the House voted to approve SJR 102. The resolution passed this body 49 yes and 22 no.
Next steps: The resolution was read and will be returned for signatures and enrolling; members discussed the possibility of reconsideration but recessed to address technical issues before any further procedural steps.
