HOUSTON – Although it looks like Texas is close negotiating an opioid settlement, no actual settlement has been “effectuated” – thus apparently making it too soon to appoint a fee committee, according to attorney Martin Phipps.
Across the state of Texas, dozens of municipalities have filed suit against the makers, distributors and sellers of opioids. The bulk of the cases are housed in a multidistrict litigation (MDL) court in Harris County.
On May 28, Attorney General Ken Paxton announced a coordinated bipartisan agreement with county leaders from around the state regarding the way Texas will direct future settlement money to people most impacted from the opioid epidemic.
That same day, the plaintiff steering committee (PSC) in the MDL proceedings filed a motion to appoint a fee committee to determine the allocation of fees and expenses for participating firms.
“The PSC has coordinated activities, effectuated the use of resources, and lead the prosecution of opioid related claims for Texas entities and claimants,” the motion states. “To perform these duties, it has been necessary for the PSC to incur both time and expense for the group.”
The motion cites a June 14, 2019, order that required, in part, the collection of time under the terms of the order for participating firms.
“The PSC members and participating firms, having complied with the Court’s Common Benefit Time and Expense Order, now need to determine allocations based upon timely submitted Common Benefit Time and Expenses,” the motion states.
On June 4, Phipps, founder of the Phipps Deacon Purnell law firm in San Antonio, and the clients he represents in the opioid MDL filed a response in opposition to the PSC’s motion, stating that they “vociferously oppose the establishment of a common benefit fund, the imposition of which would be contrary to Texas Law.”
Phipps argues that the court has not established the creation of a common benefit fund in the MDL proceedings, and that the PSC’s representations that the court’s June 4, 2019 order established one is “both false and disingenuous.”
Phipps also contends the motion to appoint a fee committee is “premature because no settlements have yet been effectuated.”
“Thus, there is no corpus upon which to determine any allocation of fees and expenses at this time,” the motion states.
Phipps represents around a dozen counties in the MDL, including Bexar County and Nueces County.
Bexar County, which hopes to reap $1 billion in damages from its opioid lawsuit, has already publically stated that it would rather take its chances in court than receive around $7 million form a statewide settlement.
Nueces County, on the other hand, is seemingly proud of its leading role in Paxton’s agreement.
When the AG’s Office sent out its press release announcing the agreement, it contained several quotes from county leaders, including a quote from Nueces County Judge Barbara Canales.
“Both Texas and Nueces County had a good day today, one that will help us put the opioid epidemic behind us,” said Judge Canales in the release. “I am proud that Nueces County took a leading role in this most important endeavor.”
The PSC is requesting the following counsel be appointed to the Texas MDL fee committee: Jeffrey Simon (Simon Greenstone Panatier), Dara Hegar (The Lanier Law Firm), Shelly Sanford (Watts Guerra), Matthew McCarley (Fears Nachawati), Pam McLemore (Gallagher Law Firm), Tommy Fibich (Fibich Leebron), Richard Schechter, Dennis Reich, and Jack Walker.
Master file No. 2018-63587